Malaysia

Sabah to maintain 40% rights to state revenue

Finance minister says negotiations based on data, statistics needs to proceed.

Updated 2 years ago · Published on 30 Nov 2023 4:04PM

Sabah to maintain 40% rights to state revenue
Finance Minister Datuk Seri Masidi Manjun says Sabah and Putrajaya will continue to negotiate until a solution is found. – The Vibes file pic, November 30, 2023.

by Jason Santos

SABAH will keep its right to 40% of the state’s revenue, Finance Minister Datuk Seri Masidi Manjun said.

“As emphasised by the state government, it will continue to demand the 40% share of the federal government’s revenue from Sabah.

“We believe there is no need to devise a new formula. The formula is already provided in the Federal Constitution.

“In this matter, what is needed is to proceed with negotiations based on the data and statistics that need to be presented by the Federal Government,” he said in the Sabah Finance Ministry winding-up speech today.

Sabah is entitled to 40% of revenue collected by Putrajaya, as stipulated in article 112C and section 2(1) of Part IV of the Federal Constitution.

A decision on the 40% revenue rights is expected to be made mid-next year.

Meanwhile, Masidi also noted the new gazette on the special grant issued in parliament yesterday, saying he believed it could not override the provisions of the constitution.

Sabah MPs were caught by surprise yesterday when a copy of the gazette was placed on their tables before the Dewan Rakyat sitting.

According to Assafal Alian (Warisan-Tungku) the special grant review order was gazetted in November, which revoked the review order in 2022 that revoked the first review order in 1969.

Assafal pointed out the first review order stated the cancellation of the 40% revenue rights for Sabah and he expressed fear Sabah has lost this.

He has called for Sabah to treat the matter cautiously, especially on the legal implications which could even lead to Sabah losing its rights.

Masidi pointed out that Prime Minister Datuk Seri Anwar Ibrahim had said that the special grant which Sabah received two days ago is only an interim payment.

Anwar yesterday announced that the RM300 million special grant to Sabah has already been paid.

“For this, Sabah and Putrajaya will continue to negotiate until a solution is found,” he said. – The Vibes, November 30, 2023

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