Malaysia

Special grant does not stop Sabah’s 40% revenue share claim: Masidi

State maintains it has constitutional right to revenue share percentage

Updated 4 years ago · Published on 14 Apr 2022 7:34PM

Special grant does not stop Sabah’s 40% revenue share claim: Masidi
Datuk Seri Masidi Manjun, who leads Sabah’s team on the Joint Consultative Committee to review the annual grants, says negotiations on the revenue share deal have been held up by differing interpretations of the constitutional provisions governing the revenue split. – Bernama pic, April 14, 2022

by Jason Santos

KOTA KINABALU – The federal government’s move to raise its annual special grant to Sabah should not prejudice the state’s right to pursue its constitutional entitlement to 40% of its annual revenue, state minister Datuk Seri Masidi Manjun said today.

Masidi, who leads Sabah’s team on the Joint Consultative Committee to review the annual grants, said negotiations on the revenue share deal have been held up by differing interpretations of the constitutional provisions governing the revenue split.

“We pursued the 40% according to how we understood it. But the federal parties had their own interpretation,” he told reporters at an event here.

“So, what we have done at present, we had to agree to disagree on that part…there are also things we have agreed to that can still go on.

“But at the same time any agreement should not prejudice Sabah’s rights to pursue the 40% that we feel we are entitled to under the federal constitution.”

Prime Minister Datuk Seri Ismail Sabri and Sabah Chief Minister Datuk Seri Hajiji Noor in a joint statement today announced a 470% increase in the special annual grant for Sabah from RM26.7 million.

Negotiations on the 40% claim for Sabah revenue however will continue, the two leaders said. 

Article 112C of the constitution provides for the special grant and assignments of revenue for Sabah and Sarawak, and Article 112D allows for a review of the grant between Putrajaya and the East Malaysian states. 

Article 112D (6) of the constitution meanwhile states however that the federal and Sabah governments can refer the matter to an independent assessor if both parties are unable to reach an agreement on the special grant. – The Vibes, April 14, 2022

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