THE SABAH Government respects the decision of the Court of Appeal to allow the Federal Government’s application for a stay of the High Court order to review the special grant for the lost years and reach an agreement within 180 days to pay Sabah’s 40 per cent entitlement pending appeal.
“Notwithstanding the court proceedings, it is hoped that negotiations will proceed in good faith towards reaching an agreement with the Federal Government,” Chief Minister Datuk Seri Hajiji Haji Noor said.
He noted that the stay order granted is procedural in nature and keeps the status quo until the Federal Government's appeal has been heard.
“It does not set aside the existing High Court orders granted. Whilst the High Court order to hold a review is for the Lost Years (1974 - 2021), it should not prevent a review for the current years, given that the Federal Government does not dispute the 40 per cent formula and the need to hold a review,” he said as reported by Bernama.
The Chief Minister reiterated the State Government's opposition to the stay of the High Court order, though he emphasised that the government respects the court's recent decision.
“This is an ongoing process, and the State Government will continue to discuss the matter and seek a solution,” he stressed.
Hajiji said the Federal Government did not appeal the October 2025 Kota Kinabalu High Court ruling on Sabah’s Constitutional right to 40 per cent of net federal revenue collected, and Prime Minister Datuk Seri Anwar Ibrahim has pledged to honour it.
The tentative dates for the hearing of the Federal Government's appeal are between October 27 and 30, and there is an e-Review fixed on April 13 to confirm the actual date of the hearing. – April 6, 2026
