Malaysia

Sabah welcomes High Court decision on 40% revenue entitlement

Hajiji said the victory also recognised the important role of the Sabah Government in continuing to defend and assert the state’s constitutional rights.

Updated 10 months ago · Published on 17 Oct 2025 4:04PM

Sabah welcomes High Court decision on 40% revenue entitlement
The Chief Minister said the State Government would negotiate with the Federal Government to implement the Court’s order in a spirit of cooperation and mutual respect - October 17, 2025

SABAH today welcomed the High Court’s decision allowing the Sabah Law Society’s (SLS) application for judicial review of Sabah’s entitlement to the 40 per cent special grant from the Federal Government.

“We are relieved by the High Court’s decision directing the Federal Government to conduct a review of the grant for the missing years within 90 days.

"This decision confirms Sabah’s rights as enshrined in the Federal Constitution, particularly under Articles 112C and 112D,” said Caretaker Chief Minister Datuk Seri Hajiji Noor.

He said the victory also recognised the important role of the Sabah Government in continuing to defend and assert the state’s constitutional rights.

He added that the State Government’s efforts in clarifying historical records, including the “Share of Growth of Federal Revenue Derived from Sabah” from 1964 to 1968, had played a significant role in asserting that the intent and effect of Articles 112C and 112D remained unchanged.

“The receipt of interim payments is without prejudice to the state’s constitutional rights,” he said.

From the very beginning, Hajiji said in every Malaysia Agreement 1963 (MA63) meeting chaired by the Prime Minister, the Sabah Government has always been consistent and firm in presenting the state’s demands.

“We have been fighting this issue relentlessly through every official channel, every MA63 meeting chaired by the Prime Minister, and through many official letters sent to Putrajaya.

"We have never let this matter stand still. With this decision, we hope that the Federal Government will fulfill its responsibilities as agreed upon during the formation of Malaysia,” he said.

The Chief Minister said the State Government would negotiate with the Federal Government to implement the Court’s order in a spirit of cooperation and mutual respect, as well as ensuring that Sabah’s constitutional rights are fully realised.

Hajiji also praised the SLS’s action in bringing this issue to court as a matter of public interest.

High Court Judge Datuk Celestina Stuel Galid in her decision today also ordered that both the Federal and State Governments reach a mutual agreement within 180 days from the date of the order, as required under Article 112D of the Federal Constitution. – October 17, 2025

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