Sabah could see annual revenues surpass RM30 billion if all its constitutional entitlements are fully implemented and collected, Parti Solidariti Tanah Airku (STAR) president Datuk Seri Jeffrey Kitingan said.
He noted that the RM6.43 billion projected under the Sabah 2026 Budget represents only a fraction of what the state is legally owed, citing long-standing failures to enforce key financial provisions under the Federal Constitution.
“In fact, Sabah’s revenue for 2026 could potentially exceed RM30 billion if all revenues belonging to Sabah under the Constitution are fulfilled and paid,” Kitingan said during the Sabah State Assembly sitting today.
He highlighted Sabah’s long-delayed 40 per cent special grant under Articles 112C and 112D, as well as the state’s rights to collect import and excise duties on petroleum products and export duties on crude oil. Sabah is entitled to collect import and excise duties on petroleum products under the Constitution’s Tenth Schedule, which could generate at least RM1 billion annually — far above the RM120 million currently collected.
Kitingan added that Sabah could also impose export duties on crude oil instead of receiving oil royalties of up to 10 per cent ad valorem, potentially bringing in around RM3.6 billion a year.
Pointing out that Prime Minister Datuk Seri Anwar Ibrahim had stated that RM10.2 billion was collected from Sabah in 2023, Kitingan argued the figure was understated. If customs collections were properly accounted for, he said, Sabah’s contribution would reach at least RM11.5 billion, excluding taxes paid by international oil firms, palm oil companies, or federal agencies in the state.
Kitingan dismissed claims that returning the 40 per cent revenue share would bankrupt the federal government, emphasising that the funds belong to Sabah. He attributed past failures to political weakness and reluctance to assert the state’s rights, noting that Sabah, often perceived as Malaysia’s poorest state, is actually resource-rich.
He cited a High Court ruling from October 17 affirming Sabah’s entitlement to the 40 per cent federal revenue share, which had not been reviewed since 1974, reinforcing the state’s longstanding rights.
To safeguard Sabah’s financial entitlements, Kitingan proposed creating a consolidated state account for all federal collections from Sabah and urged the formation of a bipartisan MA63 Cabinet committee to oversee negotiations and protect the state’s constitutional rights.
“Given the importance of these issues, a special Cabinet committee comprising both government and opposition members should be formed to protect Sabah’s interests,” he said.
