Poser over Sabah 40pct revenue talks as court-ordered review hits 90 days

Concerns have been raised over the pace and substance of negotiations between the federal and Sabah governments on the implementation of the High Court’s ruling on Sabah’s 40 percent revenue entitlement.

This is as the court-mandated review process reaches its first critical milestone.

The concerns were voiced by Roger Chin, a Sabah legislative assembly member and the lawyer who initiated the judicial review that culminated in the landmark judgment delivered on Oct 17, 2025.

The ruling affirmed Sabah’s constitutional entitlement under Article 112D of the Federal Constitution, and directed both governments to undertake a substantive review process within 180 days, covering both the 40 percent entitlement and the long-standing issue of the so-called “lost years”.

Today marks the expiry of the first 90 days from the date of judgment - a period intended by the court for meaningful engagement between the two parties to begin.

Under the High Court’s order, the federal and Sabah governments now have a further 90 days - until April 15, 2026 - to conclude negotiations.

Officials from both governments were supposed to hold a meeting in December 2025.

The meeting was described as focusing on clarifying parameters, methods, amounts and payment timelines, according to news reports.

However, Chin said this did not amount to meaningful negotiations as envisaged by the court.

A second meeting was also scheduled for Dec 19, 2025, but was postponed by the federal government, with no replacement date announced, he added.

“As at the expiry of 90 days from the date of judgment, it must be stated clearly and without qualification that, although the process has technically begun, no genuine or meaningful negotiations of the kind contemplated by the court directed at fulfilling the court-ordered review have in fact taken place.

“While such clarification may be a necessary preliminary step, the meeting did not result in substantive engagement or agreement on the core issues required to give effect to the judgment,” he said.

No ‘good-faith compliance’

Chin added that there had been no confirmation of negotiations on quantum, no agreed methodology, no disclosure sufficient to support an accounting exercise, and no concrete timeline aimed at compliance within the court-ordered period.

“This postponement, without rescheduling or substantive follow-up, reinforces concerns regarding the absence of urgency and seriousness required by the judgment,” he said.

He noted that half of the time envisaged by the court for reaching an agreement had now elapsed.

“At the 90-day mark, half of the period envisaged by the court for reaching an agreement has elapsed.

"A single preliminary meeting, followed by a postponed engagement with no replacement date, cannot reasonably be characterised as good-faith compliance with the court’s orders,” he added.

Chin said that the judgment imposed binding legal obligations and envisaged sustained, bona fide engagement.

“The continued failure to engage meaningfully not only jeopardises compliance with the 180-day timeline ordered by the court, but also undermines the review process expressly directed by the judgment, thereby exposing the respondents to a real risk of further legal consequences,” he said.

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