MINISTER in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said has urged Sabah’s incoming government to maintain constructive relations with the Federal Government, saying no state party can act alone in pursuing the long-standing 40 percent revenue entitlement.
Speaking to media after attending the ‘Justice on Wheels’ programme at Tuaran District Market, Azalina warned against campaign narratives focused solely on “Sabah for Sabahan,” which she said risked generating negative sentiment without producing meaningful results.
“The issue of Sabah’s 40 percent entitlement may be politicised for the state election. Whatever the outcome, I want to emphasise that any government chosen by the people cannot avoid having a relationship that allows for dialogue and cooperation with the Federal Government,” she said.
Drawing a comparison with Peninsular Malaysia, she noted that even opposition parties administering four states — Kedah, Kelantan, Terengganu and Perlis — hold regular meetings with central authorities.
“Even in the Peninsula, the meetings of Menteri Besar and Chief Ministers are conducted at the Centre,” she said.
Azalina added that planning sessions have already commenced involving the Chief Secretary to the Treasury, Datuk Johan Mahmood Merican, and the Sabah State Secretary, Datuk Seri Safar Untong, to discuss the mechanics of the revenue allocation.
The 40 percent entitlement issue has dominated campaigning during Sabah’s state election, with local parties repeatedly invoking the sentiment to gain voter support.
A landmark decision by the Kota Kinabalu High Court on 17 October ruled that the Federal Government had acted unlawfully and exceeded its constitutional powers by failing to fulfil Sabah’s claim to 40 percent of federal revenue for nearly five decades since 1974.
The court ordered the Federal Government to review the state’s entitlement within 90 days from 17 October - November 27, 2025
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