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Key Highlights
Govt won't appeal 40% ruling
Upko quits Harapan
Cabinet reshuffle soon?
Govt won't appeal 40% ruling
The government has decided not to appeal a High Court ruling that affirmed Sabah's entitlement to 40 percent of federal revenue collected from the state.
However, it will appeal against parts of the judge's ruling, which said Putrajaya and the Sabah government had abused their powers and breached their constitutional duties in regards to the payout.
Regardless, the Attorney-General's Chambers (AGC) said the government will 'immediately' commence negotiations with the Sabah government.
Sabah is currently governed by a caretaker government. Prime Minister Anwar Ibrahim had said that talks will only begin after a new administration is elected later this month.
The decision not to appeal the ruling comes after backlash against Anwar after he dismissed any distinction between federal allocations to Sabah and the 40 percent share.
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Upko quits Harapan
Before Anwar's cabinet could decide whether or not to appeal the Sabah 40 percent ruling, Sabahan party Upko decided to split from Pakatan Harapan.
While it is easy to dismiss the decision as jumping the gun, the revenue share issue was just one issue that pushed Upko out the door.
Another underlying issue, appears to be disagreements with Anwar's party PKR which Upko accused of undermining its authority to lead Harapan in Sabah.
Sabah PKR, in bidding farewell to Upko, did not acknowledge those grievances.
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Cabinet reshuffle soon?
Upko president Ewon Benedick resigning from cabinet has added fuel to speculation that there might be a cabinet reshuffle soon.
This is as Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz will also be leaving cabinet when his final term as senator ends in early December.
This could be Anwar's last chance to reform his cabinet line-up and build a good image of his government before the next general election - which may be held in early 2027.
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