COMMENT | The federal government’s announcement not to appeal against the High Court’s recognition of Sabah’s 40 percent constitutional entitlement under Article 112C and the 10th Schedule is a welcome and significant development - but one that must be received with cautious optimism.

It marks an important step forward, signalling that Putrajaya now accepts Sabah’s constitutional right to the 40 percent special grant - a safeguard entrenched at the formation of Malaysia.

Yet, the intended appeal on parts of the judgment’s reasoning means the implications must still be watched carefully, particularly as they could affect how past non-compliance and arrears are treated.

According to statements issued by the Prime Minister’s Department and the Attorney-General’s Chambers (AGC), the federal government will not appeal against the High Court’s recognition of Sabah’s 40 percent entitlement.

However, it intends to file an appeal regarding...