Respect 40pct revenue verdict, Sabah leaders urge Putrajaya

Sabah political leaders from both sides of the political divide urged Putrajaya to respect the High Court’s landmark ruling on the state’s 40 percent revenue entitlement.

They also warned that any appeal would contradict the spirit of the Federal Constitution and delay long-overdue justice for Sabahans.

Warisan president Shafie Apdal said while Putrajaya has the right to appeal, it should be mindful of what was “already spelled out in the Constitution”.

“Of course, under the Constitution they are allowed to appeal but we hope they will not.

“The judgment by the court is quite clear, it reflects what was agreed in the spirit of Malaysia’s formation,” he told Malaysiakini.

Earlier today, the Kota Kinabalu High Court ruled that the federal government acted unlawfully and beyond its powers under the Federal Constitution by failing to honour Sabah’s 40 percent share of federal revenue for nearly five decades.

Judge Celestina Stuel Galid declared that the special-grant review orders jointly issued by the federal and state governments were “unlawful, ultra vires and irrational,” breaching the Constitution.

The judge also found that the Second and Third Review Orders were invalid and allowed the Sabah Law Society’s (SLS) application in full.

‘Sabah’s right, not political concession’

Meanwhile, Parti Bersatu Sabah (PBS) acting president Joachim Gunsalam, Tuaran MP Wilfred Madius Tangau, and Sabah DAP chairperson Phoong Jin Zhe issued statements lauding the court’s ruling.

They said the ruling reaffirmed that the 40 percent entitlement was a right, not a political concession.

The leaders noted the matter is a constitutional obligation owed to Sabah under Articles 112C and 112D of the Federal Constitution and the Malaysia Agreement 1963 (MA63).

They also reminded both governments to adhere to the court’s order requiring a joint review within 90 days and settlement within 180 days to determine the amount owed to Sabah for the “lost years” since 1974.

“The 40 percent entitlement is not a privilege - it is a right guaranteed to Sabah since 1963,” said Gunsalam.

Phoong added: “The court has reminded us that these are binding obligations, not promises open to negotiation.”

Historic justice

The leaders also emphasised that the verdict represented a historic restoration of justice and fairness after nearly five decades of federal inaction.

They said the decision reaffirmed that constitutional mechanisms, not politics, should guide federal–state relations.

Tangau, a long-time advocate for Sabah’s revenue rights, said the decision should mark “a new chapter in the implementation of MA63”, urging Putrajaya to proceed with sincerity.

“The court has spoken. It is now time for the federal government to honour its duty, not prolong this issue through appeal,” he stressed.

United Progressive Kinabalu Organisation (Upko) secretary-general Nelson Angang , meanwhile, said the focus should now shift to implementation.

“This is not about politics, it’s about dignity, justice, and Sabah’s rightful position within Malaysia,” he said.

Meanwhile, Sabah PKR in welcoming the decision said a return of the income will strengthen the state's ability to re-invest in various infrastructure projects, as well as increased socio-economic development.

The state chapter said such a move will be in line with the federal government's aspiration under leadership of Prime Minister Anwar Ibrahim.

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