THE Federal Government and the incoming Sabah state administration must urgently convene within 90 days to review the state’s long-contested entitlement to 40 percent of net federal revenue collected from Sabah, following a High Court ruling in Kota Kinabalu on Thursday.
The call was issued by Sabah’s chapter of the People’s Justice Party (PKR), which hailed the decision as a landmark moment in restoring the state’s constitutional rights after decades of delay.
“We urge the Federal Government and the incoming Sabah Government to immediately sit down within the 90-day timeframe set by the court and ensure the full implementation of the 40 percent special grant entitlement,” PKR Sabah said in a statement responding to the court’s ruling.
The High Court order came after Judge Datuk Celestina Stuel Galid ruled in favour of a judicial review filed by the Sabah Law Society (SLS), which had sought clarification and enforcement of Sabah’s constitutional right to receive 40 percent of net revenue collected by the Federal Government from the state. The judicial review was filed in 2022.
PKR Sabah welcomed the decision, saying it marked a turning point in the fight for Sabah’s rights after 48 years without any official review of the state’s revenue entitlement, which is enshrined in the Federal Constitution under the Malaysia Agreement 1963 (MA63).
“KEADILAN Sabah stresses that the restoration of the 40 percent entitlement is not merely a financial issue, but a symbol of justice and respect for the original spirit of MA63,” the statement said.
PKR also reiterated its commitment to act as the people’s voice in ensuring that constitutional justice is not delayed by bureaucratic red tape or partisan politics.
“As a party grounded in reform, transparency and good governance, we believe that returning this revenue entitlement will strengthen the state's ability to reinvest in infrastructure, education, healthcare and the welfare of Sabahans,” it said.
The party added that the move is aligned with the aspirations of the Malaysia Madani agenda under the leadership of Prime Minister Datuk Seri Anwar Ibrahim.
“KEADILAN Sabah will continue to stand firmly with the people and with the Prime Minister’s leadership in pursuing the full implementation of Sabah’s rights under MA63, including the periodic review of this 40 percent special grant, which is the rightful inheritance of the people of Sabah since the formation of Malaysia,” the statement said.
The court’s decision now places a legal obligation on both federal and state authorities to negotiate the long-standing issue, which many in Sabah see as central to achieving genuine autonomy and equitable development within the federation. - October 18, 2025
Sabah, Malaysia Agreement 1963, MA63, Federal Government, High Court, revenue entitlement, PKR, constitutional rights, 40 percent entitlement, judicial review
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