SABAH PKR has called on the next state government to take full responsibility for formulating and detailing the calculation and payment mechanism for Sabah’s 40 per cent share of federal revenue, in line with the Malaysia Agreement 1963 (MA63).
In a statement, the party said the process must go beyond paperwork and involve experts to ensure the formula accurately reflects Sabah’s fiscal realities and economic conditions.
“The Sabah Government must take full responsibility in formulating and refining the calculation methods and mechanisms for the 40 per cent revenue entitlement through the Malaysia Agreement 1963 Implementation Action Council (MTPMA63),” the statement read.
PKR Sabah said the new formula must be transparent, legally sound, and data-based and not a political compromise. It added that the eventual framework should involve financial, legal and economic specialists to ensure “every sen is properly accounted for in the spirit of the Malaysian federation.”
Commitment to rule of law under MADANI
The party praised Prime Minister Datuk Seri Anwar Ibrahim for respecting the Kota Kinabalu High Court’s ruling on Sabah’s 40 per cent entitlement and for allowing the legal process to conclude before making any further decisions.
“Anwar’s approach shows that the MADANI government remains anchored on the rule of law and the principle that decisions must be made in the interest of both Sabah and Malaysia and not political expediency,” PKR Sabah said.
It also noted that under Anwar’s leadership, the federal government has made tangible progress on MA63 issues long left unresolved, including returning oversight of Sabah Electricity Sdn Bhd (SESB) to the state, authorising federal project approvals of up to RM50 million by state departments, and securing permanent representation for Sabah and Sarawak on the Inland Revenue Board (LHDN).
Proof of fiscal sincerity
PKR Sabah cited the steady increase in annual federal special grants to Sabah as evidence of the government’s seriousness in restoring fiscal justice.
The amount, which had not been reviewed for nearly five decades, rose as follows:
• 2018 – RM26.7 million
• 2019 – RM53.4 million
• 2022 – RM125.6 million
• 2023 – RM300 million
• 2025 – RM600 million (fully paid on 10 September 2025)
“This increase demonstrates the Prime Minister’s sincerity in addressing Sabah’s fiscal imbalance,” the statement added, noting that a new formula based on law and fairness is being drawn up to ensure the benefits remain sustainable.
Call for accountability, efficient use of funds
The party said a transparent and efficient state administration is vital to ensure the 40 per cent share is optimally used for the people’s welfare.
“Comprehensive planning must be undertaken so that the funds are utilised strategically to build infrastructure, strengthen education and healthcare, and create new employment opportunities,” it said.
PKR Sabah said Anwar’s administration has proven that MA63 is not just recognised on paper but is being implemented through concrete action.
“We will continue to support this effort to uphold justice, development, and dignity for the people of Sabah,” it said, reaffirming the party’s commitment to equal political and economic partnership between Sabah, Sarawak and Peninsular Malaysia as envisioned in MA63.
The statement comes as political parties in Sabah prepare for the Sabah general election on November 29. – October 24, 2025
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