SABAH Progressive Party (SAPP) has responded with sarcasm to Putrajaya’s announcement of a one-off RM100 cash handout.
Its information chief Chin Vui Kai said that while the federal government is willing to spend billions on financial assistance, it still refuses to honour Sabah’s constitutional right to a 40% share of revenue collected from the state.
“When the issue of Sabah’s 40% revenue is raised, the federal government’s answer remains unchanged: no money.
“But it has just announced an allocation of RM2.2 billion — RM100 for every adult citizen nationwide — bypassing the parliamentary budget process.”
“Only about RM200 million of that will reach Sabah, based on the number of eligible adults here,” Chin said in a statement.
Sabah’s right to a 40% net revenue return is enshrined in the Malaysia Agreement 1963 and Article 112C of the Federal Constitution.
Chin noted that the Inland Revenue Board and the Customs Department collect nearly RM8 billion from Sabah each year.
The amount excludes tax contributions from Petronas, banks, publicly listed companies, and plantation firms operating in Sabah but taxed in Kuala Lumpur or other parts of Peninsular Malaysia.
“In the 1970s and 1980s, Yayasan Sabah channeled ‘timber money’ directly to the people often in amounts exceeding RM100 when adjusted for the stronger value of the currency at the time.
“The 40% revenue entitlement, based on collections in Sabah, does not require a single sen from the federal government’s own coffers.
“Sabah’s wealth has always been sufficient to uplift its people and if the 40% revenue is returned and managed within the state,” Chin said.
His remarks come amid growing scrutiny over what many in Sabah perceive as unequal financial treatment by the federal government.
The one-off RM100 cash handout was part of a package of benefits announced by Prime Minister Datuk Seri Anwar Ibrahim on Thursday, in conjunction with National Day and Malaysia Day celebrations in August and September.
The cash aid is expected to benefit over 20 million Malaysian adults, with approximately RM2.2 billion to be spent, and hundreds of millions more in toll subsidies. - July 25, 2025
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