Allocations to Sabah not the same as 40pct revenue rights - Upko

Allocations to Sabah are not equal to the constitutionally guaranteed 40 percent of federal revenue from the state, United Progressive Kinabalu Organisation (Upko) deputy president Donald Peter Mojuntin said.

In a statement today, he called on the federal government to demonstrate its political sincerity by implementing Sabah's 40 percent revenue rights, as mentioned in Articles 112C and 112D of the Federal Constitution.

"What we want from the federal government is not just a temporary payment or a conditional promise, but a formal recognition of Sabah's rights as provided for in the Constitution.

"Until these rights are fully recognised and implemented, this struggle will not be over. This is not a party or individual struggle - this is a struggle for the people of Sabah to reclaim what has long been our right.

"We demand real implementation, not just protracted negotiations," Mojuntin (above) asserted.

Earlier today, Prime Minister Anwar Ibrahim said the federal government will decide whether to appeal the Kota Kinabalu High Court's ruling on Sabah’s 40 percent share of federal revenue after obtaining the advice of the attorney-general.

During a special briefing session at the Dewan Rakyat, Anwar told the house that he called for the briefing to clarify "misleading interpretations" of the court ruling, "as if the federal government merely extracts revenue from Sabah without contributing to its development."

READ MORE: KINIGUIDE | What High Court's 40pct revenue ruling means for Sabah

‘Increasing amount’

Stressing Putrajaya's commitment to addressing all demands from Sabah and Sarawak under the Malaysia Agreement 1963 (MA63), Anwar said they had allocated more funds to Sabah than what the federal government collected from the state since 2022.

The premier said the federal government has channelled an increasing amount of funding to Sabah from RM13 billion in 2022 to RM14 billion in 2023 and 2024, and RM17 billion for this year and the next, as opposed to around RM10 billion in revenue it collects from the state every year.

Last Friday, the court found the federal government had 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.

The court issued a mandamus order directing Putrajaya to conduct a new revenue review with the Sabah government under Article 112D of the Constitution and agree on the state’s 40 percent entitlement for each financial year from 1974 to 2021.

The review is to commence within 90 days and conclude within 180 days.

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