THE United Progressive Kinabalu Organisation (Upko) considers Putrajaya’s decision to double Sabah’s special entitlement to RM600 million a recognition of the state’s 40% revenue rights as outlined in the Federal Constitution.
Party president Datuk Ewon Benedick said today that while the increase is an interim move, it signalled Putrajaya’s acknowledgement of Sabah’s revenue rights amid ongoing negotiations to resolve the revenue-sharing formula.
“What follows will be ongoing discussions between the Sabah and federal governments. I believe this will take time, as it involves a formula that requires mutual agreement between both parties,” he said recently.
Benedick also noted that no deadline had been set to resolve Sabah’s 40% revenue entitlement.
At the conclusion of the Malaysia Agreement 1963 (MA63) Implementation Action Council meeting in Kota Kinabalu on September 12, Deputy Prime Minister Datuk Seri Fadillah Yusof announced that Prime Minister Datuk Seri Anwar Ibrahim had decided to double the special entitlements for Sabah and Sarawak from RM300 million to RM600 million for 2025.
Fadillah noted that Sabah’s 40% revenue-sharing formula was not prioritised at the meeting as he cited differing interpretations of constitutional provisions between the Borneo states and Putrajaya.
Sabah’s 40% revenue entitlement is enshrined in the Federal Constitution under Article 112C and Part IV of the Tenth Schedule.
Fadillah said the increase in special entitlements was done in accordance with Article 112D of the Federal Constitution, which allows negotiating parties to agree on a fixed amount for a special grant.
The special entitlements increase is expected to be announced by the prime minister during the national budget presentation in parliament next month.
Fadillah added that he could not elaborate on the 40% issue further as it was considered sub judice.
Meanwhile, Sabah’s leaders have expressed optimism about the special entitlements increase.
Chief Minister Datuk Seri Hajiji Noor stated that the higher grant reflected Putrajaya’s acknowledgment of Sabah’s developmental needs and the federal government’s commitment to fulfilling obligations to the state.
“I hope all unresolved issues will be addressed and implemented for the benefit of both parties.
“The interim payments are due for review every five years, but the prime minister has decided to double them now,” Hajiji said.
Sabah Pakatan Harapan Chair Datuk Christina Liew also welcomed the special grant increase, calling it an interim solution pending the resolution of the 40% revenue entitlement.
Sabah had previously indicated that it might exercise its right to appoint an independent assessor under Article 112D(6) of the Federal Constitution, amid public concerns that the state government had waived its constitutional rights when initially agreeing to a sum offered by Putrajaya.
The clarification stemmed from the gazettement of the second review order, which fixed the state's annual special grant for the next five years, the Sabah government had endorsed in November 2022. – September 14, 2024.
