Putrajaya will not appeal against the Kota Kinabalu High Court’s ruling affirming Sabah’s entitlement to a 40 percent share of federal revenue collected from the state.

In a statement today, the Attorney-General’s Chambers (AGC) said the federal government respects the constitutional principle of the “Special Grant” under Article 112C of the Federal Constitution and has agreed to proceed with negotiations with the Sabah government immediately.