40 per cent revenue claim under MA63 remains key priority for Sabah PH

THE issue of Sabah’s 40 per cent revenue entitlement under the Malaysia Agreement 1963 (MA63) remains a key priority for Sabah Pakatan Harapan (PH), which maintains that the matter must be resolved in accordance with the court-set timeline for the benefit of the state's people.

Minister in the Prime Minister’s Department (Sabah and Sarawak), Datuk Mustapha Sakmud, said the issue was discussed at a recent Sabah PH meeting attended by component parties DAP, Amanah and PKR.

“I heard strong concerns expressed by party leaders on this matter, and they urged that it be resolved according to the timeline set by the court,” he told reporters after the meeting, reported Bernama.

Also present were Sabah DAP chairman Datuk Phoong Jin Zhe and Sabah Amanah chairman Datuk Lahirul Latigu.

Mustapha, who has been assigned as the secretariat to the MA63 Implementation Action Council, said he would convey the concerns raised to the Technical Committee and the upcoming Cabinet meeting.

To further strengthen the consultation process, he said the Cabinet had agreed to appoint two Sabah ministers, namely Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali and Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup, to sit on both the Technical Committee and the MA63 Implementation Action Council at the federal level.

“Both of them will attend the technical committee meeting on Feb 23 involving representatives from the federal government as well as the Sabah and Sarawak state governments.

“The meeting will be chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof,” he said.

Responding to a question on whether the Feb 23 meeting would also address the issue of Sabah’s so-called “Lost Years”, Mustapha said the matter would be presented by a separate committee led by the Ministry of Finance (MOF).

“There is a committee, particularly from the MOF, that will provide an update on the issue, and we will hear their report for further discussion,” he said.

He added that two committee-level meetings had so far been held, co-chaired by State Secretary Datuk Seri Sr Safar Untong and Treasury Secretary-General Datuk Johan Mahmood Merican, to deliberate on related matters.

On Oct 17, the Kota Kinabalu High Court ruled that the federal government is obligated to review and pay Sabah its 40 per cent net revenue entitlement.

Meanwhile, Phoong stressed that the 40 per cent claim is a major political agenda that must not be taken lightly, as the people of Sabah are awaiting its resolution.

“This is a very critical issue. Based on our post-mortem discussions after the last Sabah state election, one of the key matters raised by the people was the 40 per cent revenue entitlement.

“It must be resolved. We are now facing a very tight timeframe, so we have to ensure that this issue is prioritised at both the federal and state levels,” he said. – February 16, 2026