THE Federal Government has not filed any appeal over Sabah’s claim to a 40 per cent share of revenue, with negotiations between Putrajaya and the state continuing alongside ongoing court proceedings.
Minister in the Prime Minister’s Department for Sabah and Sarawak, Datuk Mustapha Sakmud, said both sides are now focusing on structured engagement to move the issue forward, including the formation of a joint committee to reassess past discussions and outline a clearer path to resolution.
He confirmed that he had met Sabah Finance Minister Datuk Seri Masidi Manjun, with both agreeing to co-chair the committee comprising representatives from the Ministry of Finance and the Sabah Government.
“This committee will review previous discussions and provide briefings to facilitate important decisions, which will later be brought to both the State and Federal governments, including the Cabinet,” he said during a working visit to the main distribution branch in Gudon.
Mustapha emphasised that legal proceedings currently under way would continue independently and would not interrupt negotiations, describing the approach as a deliberate effort to allow both processes to advance concurrently.
He noted that the dispute over Sabah’s 40 per cent revenue entitlement is deeply rooted, tracing back to the formation of Malaysia in 1963 and shaped by longstanding agreements that have been revisited repeatedly over the decades.
Despite its complexity, he indicated that the current administration has demonstrated a greater willingness to address the matter, including a commitment from Prime Minister Datuk Seri Anwar Ibrahim to work towards implementing the entitlement.
“I urge the public to allow time for negotiations to reach a mutually agreed solution. While differing views continue to be expressed, I see the present environment as a rare window for constructive dialogue between the Federal and State governments,” Daily Express quoted him saying.
The renewed engagement signals a potentially pivotal phase in efforts to resolve one of Malaysia’s most enduring federal-state financial disputes. - April 14, 2026
