DATUK Seri Jeffrey Kitingan confirmed that the long-awaited decision on Sabah’s 40% net revenue entitlement will be made at a meeting of the MA63 Implementation Action Council Technical Committee (JKTPA-MA63).
“We have requested the federal government to give us the figures, the data, 13 times — and they haven’t responded. We cannot wait anymore,” said the Sabah deputy chief minister I in Kota Kinabalu.
The technical committee, chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, agreed to the June 30 session during its last meeting on March 14.
Once a decision is reached, the outcome will go to the Malaysia Agreement 1963 Implementation Action Council (MTP-MA63) — the main council chaired by Prime Minister Datuk Seri Anwar Ibrahim — for final approval.
Kitingan’s statement comes on the eve of Anwar’s working visit to Kota Kinabalu and a breaking of fast event in Tuaran over the weekend.
The 40% revenue entitlement had always been a point of contention between Sabah and the federal government.
Sabah, for years, has claimed it’s entitled to 40% of the net federal revenue collected from the state, as guaranteed under the Malaysia Agreement 1963.
It is also stipulated in the Federal Constitution Article 112C and Part IV of Tenth Schedule where it explicitly stated that Sabah was entitled to two-fifth of the revenue federal collected from the state.
The state says it still hasn’t received a full payout — only interim payments, most recently RM600 million, he said.
“Even though it has increased, this is not the final amount,” said Kitingan.
“The people are waiting. If we get what we are owed, we can develop the state faster and solve our problems more effectively.”
Kitingan said Sabah has already raised its own income from RM4.3 billion to RM7 billion in a short span.
The 40% claim, if fulfilled, could push that number much higher. But the issue goes beyond money.
Kitingan pointed out that the RM6.7 billion in development allocation Sabah receives annually is largely managed by federal agencies — and much of it ends up being returned unused.
This had left Sabah largely underdeveloped and many of its districts faced poverty issues.
“Every year, we see half, or more being returned because they are not implemented,” he said. “That’s why we need our own money to come back.”
Kitingan also said this is also the reason why Sabah is requesting the unutilised federal funds are kept in a trust by the state to ensure it is fully utilised.
He’s also calling out what he described as a misleading narrative: that Sabah gets the biggest slice of the federal development pie as often pointed by federal ministers, particularly from the Peninsular.
“That’s not true. Out of RM90 to RM100 billion, Sabah and Sarawak together get just 10 to 13 percent. Semenanjung gets 80 to 90 percent.”
He said the state is also eyeing the reinstatement of 10% export and import duties on petroleum, which could rake in another RM1 billion annually.
These payments were once made but stopped in 2007, citing ASEAN trade harmonisation — even though the duties were never formally abolished.
“Let us claim the 40% first — that is the biggest,” Kitingan said.
“But after that, we must also demand what is rightfully ours in petroleum duties. These are substantial amounts.” – March 21, 2025
