Sabah negotiating with federal govt over 40pct revenue on June 30

The Sabah and federal governments are set to hold negotiations on the state’s claim to 40 percent of net revenue collected from it on June 30.

The Sabah legislative assembly was told today that the negotiations would be held during a technical committee meeting of the Malaysia Agreement 1963 (MA63) Implementation Action Council.

Sabah Assistant Finance Minister I, Julita Majungki, said the first meeting for this year was convened on March 13 in Putrajaya, chaired by Deputy Prime Minister Fadillah Yusof.

She added that the Sabah government does not have access to complete data on federal revenue collected there, despite having submitted 13 requests for data sharing.

To date, no response has been received from the federal government, she said, adding that this has hindered the state’s efforts to calculate the actual net revenue collected.

“Nevertheless, the state government has adopted an approach to estimate the Special Grant amount using available data and reasonable assumptions derived from relevant studies,” Julita (above) said.

She was responding to oral questions from Ignatius Dorell Leiking (Warisan–Moyog) and Alias Sani (Warisan–Sekong) regarding the latest developments in Sabah’s claim for 40 percent of net federal revenue under the Malaysia Agreement 1963 (MA63) Implementation Action Council framework.

She clarified that the state government has submitted its claim for the 2023 Special Grant to the federal government and reaffirmed Sabah’s stance on maintaining the original formula as provided under Article 112C and Part IV of the Tenth Schedule of the Federal Constitution, which stipulates two-fifths, or 40 percent of the net federal revenue derived from Sabah.

“If the negotiations fail to reach a mutual agreement, then an independent assessor must be appointed as per Article 112D(6) of the Federal Constitution,” she said.

- Bernama

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