THE Attorney-General’s Chambers (AGC) has confirmed receipt of the Kota Kinabalu High Court’s written judgment regarding Sabah’s Special Grant entitlement for the years 1974 to 2021.
In a statement issued on Friday, the AGC said it would carefully review the court’s reasoning before deciding on any next steps.
“The Department will study the judgment in depth and consider all relevant legal aspects before taking further action,” the statement said.
Earlier reports stated that the High Court ruled the Federal Government had acted unlawfully and beyond its constitutional powers by failing to fulfil Sabah’s right to a 40 per cent share of federal revenue for nearly five decades.
The decision, delivered by Judge Datuk Celestina Stuel Galid, found that the special grant arrangement between the Federal and Sabah state governments was “invalid, ultra vires and irrational”, and in violation of the Federal Constitution.
She ruled that it was unconstitutional for the Federal Government to determine the special grant as set out under the Tenth Schedule.
In her judgment, the court declared the Second and Third Review Orders issued by both governments to be invalid, allowing in full the application by the Sabah Law Society (SLS).
The court also issued a mandamus order compelling the Federal Government to conduct a revenue review with the Sabah state government under Article 112D of the Federal Constitution, to restore the state’s 40 per cent entitlement for each financial year from 1974 to 2021.
The order further requires that the review be completed within 90 days, with both governments reaching a mutual agreement within 180 days from the date of the ruling.
Meanwhile, The Gabungan Rakyat Sabah (GRS) Presidential Council has urged Prime Minister Datuk Seri Anwar Ibrahim and the Federal Government to respect the recent High Court ruling on Sabah’s special 40 per cent revenue entitlement and to refrain from filing an appeal.
In a statement issued after its council meeting at Sri Gaya on Friday, GRS said it had taken note of the written judgment delivered on 17 October.
“This issue is not merely a legal matter — it concerns the dignity of the Constitution. Articles 112C and 112D of the Federal Constitution, together with the Malaysia Agreement 1963 (MA63), form the fundamental basis of Sabah’s agreement to join the Federation of Malaysia,” the statement read.
“The court’s decision simply enforces what has long been enshrined and mutually agreed upon,” it added.
The coalition stressed that there was no financial penalty imposed by the court, only a constitutional directive requiring the long-delayed revenue review to be conducted in accordance with Articles 112C and 112D.
“We therefore urge the Prime Minister and the Federal Government not to appeal against the decision. Appealing would not only reject the outcome but would also undermine the spirit of consultation and negotiation that the court has sought to restore,” GRS said. - November 8, 2025
