Malaysia

Anwar reaffirms firm federal commitment to Sabah’s 40 per cent revenue entitlement under MA63

Prime Minister says Putrajaya will honour Sabah’s constitutional share without appeal, while stressing the need for detailed discussions on implementation

Updated 7 months ago · Published on 16 Mar 2026 8:19AM

Anwar reaffirms firm federal commitment to Sabah’s 40 per cent revenue entitlement under MA63
“I have declared in the Cabinet and in Parliament, no negotiations. We are committed to honour our commitment of 40 per cent (of the state’s revenue) to the people of Sabah,” Anwar says - March 16, 2026

PRIME MINISTER Datuk Seri Anwar Ibrahim has reiterated the federal government’s unwavering commitment to honour Sabah’s 40 per cent revenue entitlement under the Malaysia Agreement 1963 (MA63), describing the pledge as a firm policy decision of the Madani administration.

Anwar, who also serves as Finance Minister, said the federal government recognises that the claim is final and will not be appealed, although further discussions are necessary to determine the most appropriate mechanism for implementation in the interest of Sabah and its people.

“We (the Federal Government) are not appealing the 40 per cent (Sabah revenue) case and that is final… As far as this government is concerned, we have given categorical assurance, this is a firm commitment, it is a policy decision.

“I have declared in the Cabinet and in Parliament, no negotiations. We are committed to honour our commitment of 40 per cent (of the state’s revenue) to the people of Sabah. Period,” he said.

He made the remarks while speaking at the Madani 2026 state-level breaking-of-fast event for Sabah held at the Central Lecture Hall Complex 2 of Universiti Malaysia Sabah in Kota Kinabalu late on Sunday.

Separately, Anwar also emphasised that the Madani Government would continue working to ensure balanced development across the country so that no community, whether in urban or rural areas, is left behind.

In a brief post on Facebook today, the Prime Minister responded to residents of Kampung Chatel Damai in Lata Rek, Kuala Krai, Kelantan, who expressed appreciation following the completion of a new bridge in their village.

The newly completed structure replaces a 24-year-old suspension bridge that collapsed on 1 January.

On 2 January, Anwar instructed that funds be allocated immediately to rebuild the bridge to ensure the safety and convenience of residents.

Earlier media reports said a wedding celebration in the village turned chaotic when the suspension bridge used by guests suddenly collapsed, sending more than 50 people into Sungai Chatel Damai.

Kelantan Implementation Coordination Unit of the Prime Minister’s Department director Jasri Kasim previously said the steel bridge, measuring 50 metres in length and three metres in width, was constructed at a cost of less than RM400,000. - March 16, 2026

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