No Sabah's 40pct revenue talks as key meeting never called

Summary

• A June 30 meeting to determine Sabah's constitutional claim to 40 percent of federal revenue has failed to materialise due to the state secretary's office inexplicably withholding the formal invitation letter.

• Sabah Deputy Chief Minister I Jeffrey Kitingan says no new date will be set until the state secretary's office provides an explanation.

The meeting to determine Sabah's long-standing claim to a 40 percent revenue entitlement on 30 June failed to materialise, after a crucial letter intended to trigger the session was never dispatched.

Deputy Chief Minister I Jeffrey Kitingan said the meeting scheduled for June 30 and endorsed by the Sabah cabinet did not proceed because the formal invitation from the state secretary's office was inexplicably withheld.

“I had written to the chief minister. The cabinet agreed to host the meeting on June 30. But when we checked, the letter was not sent. So, I want an explanation now,” he told reporters at the Sabah Star convention in Kota Kinabalu.

The proposed meeting was part of the ongoing negotiation process under the Malaysia Agreement 1963 (MA63), specifically related to Sabah’s constitutional entitlement to receive 40 percent of federal revenue derived from the state.

Sabah had offered to host the meeting at the Sabah International Convention Centre.

Federal officials, including Deputy Prime Minister Fadillah Yusof, who chairs the technical committee under the MA63 Implementation Action Council, had been informed of the state’s readiness during a meeting held on March 14.

The technical committee’s recommendations were to be submitted to Prime Minister Anwar Ibrahim, who leads the MA63 Implementation Council, for final consideration.

Awaiting explanation

However, according to Kitingan, despite the internal consensus, the necessary follow-up action was not taken.

“In the system, it did not indicate any negativity. It was all agreed and we were prepared,” he said.

Kitingan added that no new date has been set for the meeting until he receives a formal explanation from the state secretary’s office.

Sabah's 40 percent revenue entitlement is enshrined in Article 112C and Section 2(1), Part IV of the 10th Schedule of the Federal Constitution, which stipulates that Sabah shall receive 40 percent of net federal revenue collected from the state.

However, since 1974, the federal government has failed to honour this constitutional obligation, as the mandatory quinquennial financial reviews have never been conducted.

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