Malaysia

Sabah cabinet disunity exposed over 40% revenue meeting delay, says Umno leader

Musliati Moslimin criticises state leadership for sending mixed signals on key negotiation with Putrajaya

Updated 1 year ago · Published on 05 Jul 2025 3:11PM

Sabah cabinet disunity exposed over 40% revenue meeting delay, says Umno leader
The 40% entitlement refers to a long-standing constitutional provision - July 5, 2025

by Jason Santos

A Sabah Umno leader has lambasted the state government over its handling of the 40% revenue entitlement issue, following contradictory statements by two senior cabinet ministers.

Umno Kota Kinabalu division chief Musliati Moslimin said the failure to convene a scheduled meeting on 30 June — intended to address Sabah’s constitutional claim to 40% of net federal revenue collected from the state — revealed deeper problems within the state administration.

“This is not just a technical oversight.

“It reflects a systemic failure in governance when two top state ministers are issuing conflicting accounts,” she said in a statement.

She was referring to statements by Deputy Chief Minister Datuk Dr Jeffrey Kitingan and Finance Minister Datuk Seri Masidi Manjun, who gave differing explanations over whether a letter had been sent to the federal government to initiate the meeting.

Dr Jeffrey had earlier claimed that no letter had been issued, while Masidi said Sabah had in fact sent two letters — one offering to host the meeting — and that the delay was due to a request from Deputy Prime Minister Datuk Seri Fadillah Yusof.

Musliati said the inconsistency suggested a lack of coordination at the highest levels of the state government.

“This is not a matter of who is right. The real issue is why the state government cannot function with consensus.

“If a matter as crucial as this cannot be managed properly, how can we expect Putrajaya to take Sabah seriously?” she said.

The 40% entitlement refers to a long-standing constitutional provision under Article 112C and 112D of the Federal Constitution, which entitles Sabah to receive back 40% of net revenue collected by the federal government from the state.

However, the entitlement has not been fulfilled since 1974, prompting recent political pressure for its restoration.

The Sabah Law Society had also filed a judicial review on the 40% revenue entitlement and referred to the non-payments as the lost years.

The technical meeting which is chaired by Fadillah  has now been postponed to July 15.

It was aimed at resolving Sabah’s revenue entitlement. 

Musliati warned that the state’s fight for its rights must be grounded in competent administration and not just political rhetoric.

“A government that fails in governance cannot claim to be defending the rights of the people.

“Governance begins with order. Without order, there is no governance. Without governance, there is no future,” she said.  - July 5, 2025

Related News

Opinion / 4d

The Malaysia Agreement 1963: Grievances and expectations in Sabah and Sarawak

Malaysia / 1w

Budget 2027: Sabah, Sarawak to receive RM34.9b in federal allocations next year

Malaysia / 1w

Federal revenue to hit RM380.8 billion in 2027, tax collections lead growth

Malaysia / 1w

Budget 2027: Federal spending rises to RM459.84 billion

Events / 1w

Sarawak and Sabah play key roles in weathering climate change

Opinion / 2w

The socialist tinge running through Malay society and politics

Spotlight

Malaysia

Bersama suspends Nik Nazmi from party activities for three months

Malaysia

‘We have better things to do than orchestrate khalwat raids’ - Amirudin

Malaysia

Social media posts ‘emerge’- defending Ismail after Tuanku Muhriz’s public rebuke

World

Trump’s Muhammad joke about Iran presidency falls flat at Georgia rally

Health

Haze can cause life-threatening lung inflammation in cats and dogs, vet warns

World

Australia detects deadly H5N1 bird flu on Macquarie Island, threatening elephant seals

Malaysia

Agong warns against using social media to spread hatred, insult others

Malaysia

Nik Nazmi acknowledges he is the individual detained by JAIS

You may be interested

Malaysia

Zara Qairina inquest verdict set for Jan 15 (UPDATED)

Malaysia

Johor hotspots lead Malaysia’s haze tally as 25 localities record unhealthy air

Malaysia

Haze: Details of Malaysia’s aid to Indonesia to be finalised this Monday – Fahmi

Malaysia

Court hears RM40m in Khazanah, PNB investments paid into Fashion Valet accounts

Malaysia

Nine suspicious packages at Negeri schools found to contain flour, plastic plates

Malaysia

Haze: MOH issues strict guidelines to ensure public health

Malaysia

UM urged to spare student disciplinary action over criticism of Najib donation drive

Malaysia

E-wages dashboard to track compliance of RM2k minimum wage hike from June 2027