Malaysia

Court of Appeal grants stay on order over Sabah's 40 per cent revenue entitlement

The Kota Kinabalu High Court ruled last October that the Federal Government had acted unlawfully by failing to fulfil Sabah’s constitutional right to 40% of federal revenue from 1974 to 2021.

Updated 3 months ago · Published on 06 Apr 2026 9:46AM

Court of Appeal grants stay on order over Sabah's 40 per cent revenue entitlement
A three-member bench chaired by Datuk Mohamed Zaini Mazlan granted the stay pending disposal of the appeal. - April 6, 2026

THE Court of Appeal today allowed the federal government's application for an interim stay of a High Court ruling on Sabah’s Special Grant entitlement.

A three-member bench chaired by Datuk Mohamed Zaini Mazlan granted the stay pending disposal of the appeal.

The Kota Kinabalu High Court ruled last October that the Federal Government had acted unlawfully by failing to fulfil Sabah’s constitutional right to 40% of federal revenue from 1974 to 2021.

That court ordered both governments to review the entitlement for the 47 years, giving them 90 days to complete the review and a further 180 days to reach a final agreement.

The ruling followed a judicial review filed by the Sabah Law Society (SLS), which contended that both the federal and Sabah governments had breached their constitutional duties by failing to lawfully review and implement the payments.

The case centres on the interpretation of Articles 112C and 112D of the Federal Constitution concerning special grants and periodic reviews for Sabah and Sarawak.

Zaini warned that rejecting the stay could carry wider fiscal risks and that the imposed timelines may not give the parties sufficient opportunity to determine the correct quantum payable.

Senior federal counsel Ahmad Hanir Hambaly appeared for the government, while the SLS was represented by David Fung and Jeyan Marimuttu, and Sabah by state Attorney General Datuk Brenndon Keith Soh. - April 6, 2026

Related News

Malaysia / 1w

Syed Saddiq walks free: Federal Court upholds acquittal

Malaysia / 1mth

Tsunami alert: Stay calm and obey instructions from the authorities – Hajiji (video)

Malaysia / 1mth

Sabah embarks on five-year initiative to document multiethnic heritage - Hajiji

Malaysia / 1mth

Anwar - Sabah's special grant interim payment increased from RM600m to RM1.5b

Malaysia / 1mth

Anwar to clarify Sabah 40 pct entitlement talks tomorrow

Malaysia / 1mth

Sabah: GRS confident government will agree to review revenue entitlement rate 

Spotlight

Malaysia

PRNNS: Loke: 'We must win all 11 seats to help PH form state government'

Sports & Fitness

Spain ends Argentina’s World Cup reign with extra-time triumph to reclaim global crown

World

Cat found alive after being buried under Venezuela quake rubble for days (video)

Malaysia

“Resign if you attack fellow Unity Government partners,” Anwar enforces discipline

Malaysia

PH youth wing calls on BN ministers to quit cabinet over PN electoral alliance

Malaysia

Rosmah asks for prayers as Najib prepares for medical procedure

Malaysia

Woman at a loss after fake Hong Kong lawyer offers to recover money from previous scam

You may be interested

Malaysia

PRNNS: Loke: 'We must win all 11 seats to help PH form state government'

Malaysia

PH offers more comprehensive manifesto, benefits all groups

Malaysia

MINDEF to install radar on Layang-Layang Island to strengthen South China Sea surveillance

Malaysia

PH pledges 30,000 high-paying jobs, 20,000 affordable homes in Negeri manifesto

Malaysia

Man killed in hit-and-run crash while installing party flags in Rantau

Malaysia

BN-PH ties strained by grassroots reality, not Putrajaya pact, says analyst

By Alfian Z.M. Tahir

Malaysia

Dataran Merdeka filled with rubbish after World Cup final

Malaysia

Bung’s widow cleared of abetting late husband in RM2.8m corruption case