UPKO renews call for official recognition of Sabah’s 40% right after Anwar’s clarification

UNITED Progressive Kinabalu Organisation has renewed its call for official recognition of Sabah’s 40 per cent revenue entitlement, following Prime Minister Datuk Seri Anwar Ibrahim’s parliamentary explanation on the government’s obligations under the Federal Constitution.

Upko deputy president Datuk Donald Peter Mojuntin said while the party welcomed Anwar’s assurance of continued commitment to Sabah’s development and the Malaysia Agreement 1963 (MA63), the issue of 40 per cent revenue return must be treated as a constitutional right, not a goodwill measure.

“This issue is not about generosity or political favour. It is a right enshrined since the formation of Malaysia. 

“Until it is formally recognised and fully implemented, the struggle of the people of Sabah is not over,” he said in a statement in Kota Kinabalu on Wednesday. 

Anwar: Review orders valid under Article 112D

In his 22 October address to the Dewan Rakyat, Anwar said the Federal Government acknowledged the Kota Kinabalu High Court ruling that directed a review under Article 112D of the Constitution, but stressed that existing review orders issued in 2022, 2023 and 2025 were already lawful and consistent with the provision.

“The review carried out was in accordance with Article 112D of the Federal Constitution,” Anwar said, adding that it considered the Federal Government’s fiscal position and the cost of providing services in Sabah .

He noted that since 2019, successive reviews had gradually increased the Special Grant for Sabah from RM26.7 million to RM53.4 million, then RM125.6 million, RM300 million, and most recently RM600 million, a figure he said was interim while both governments develop a new formula to determine the future entitlement .

“The RM600 million Special Grant is interim in nature, while the Federal and State Governments formulate a new method for determining future calculations,” he said.

Anwar also underscored that the Madani Government has spent far more in Sabah than it collects, citing federal expenditure of RM14–17 billion annually, compared to roughly RM10 billion in revenue collected from the state each year.

“This means the Federal Government has spent more than the total revenue collected from Sabah,” he said, rejecting the notion that Putrajaya was “merely extracting revenue from Sabah without contributing to its development.”

Ewon’s warning and UPKO’s stand

Anwar’s explanation came as Putrajaya continues to study the 17 October court judgment before deciding whether to appeal.

Upko president and Entrepreneur Development Minister Datuk Ewon Benedick has previously said he would resign from the federal Cabinet if the government proceeded with an appeal, saying it would contradict both MA63 and the Federal Constitution.

Mojuntin reiterated that the party’s demand was for constitutional recognition, not temporary or discretionary payments.

“Only with such recognition can the true spirit of Malaysia — one founded on fairness and justice between its partners — be upheld,” he said.

The Kota Kinabalu High Court ruling on 17 October directed the Federal and Sabah governments to complete a review of the Special Grant and reach an agreement on the quantum within 180 days. 

The case, brought by the Sabah Law Society, has been hailed in Sabah as a landmark affirmation of the state’s constitutional right to a 40 per cent share of federal revenue derived from the state. - October 22, 2025