Putrajaya Prioritizes Sabah's 40% Revenue Ruling Amid Deadline Concerns

The federal government has reiterated its commitment to implementing the Kota Kinabalu High Court ruling on Sabah's entitlement to 40% of net federal ...

Putrajaya Prioritizes Sabah's 40% Revenue Ruling Amid Deadline Concerns
The federal government has reiterated its commitment to implementing the Kota Kinabalu High Court ruling on Sabah's entitlement to 40% of net federal revenue, emphasizing it as a top priority. This declaration comes amid growing concerns from legal and political figures that tangible progress remains elusive as the court-imposed deadlines approach. Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud stated that Prime Minister Datuk Seri Anwar Ibrahim reaffirmed the government's dedication to the ruling during a recent federal Cabinet meeting. "The prime minister has expressed serious concern over compliance with the Kota Kinabalu High Court decision regarding Sabah’s 40 per cent revenue claim, and has placed this issue as a top priority at today’s Cabinet meeting," Mustapha said. The court ruling established two critical implementation timelines: a 90-day period to review the rate of Sabah's Special Grant, which concluded on January 14, and a 180-day period for the Federal and Sabah Governments to reach an agreement and implement a payment mechanism. Mustapha highlighted that during the 90-day review, one meeting was held on November 17, 2025, as part of initial discussions on the framework, parameters, and fundamental matters related to the court decision's implementation. To underscore the government's resolve, Mustapha also paid courtesy calls to the Yang di-Pertua Negeri of Sabah Tun Musa Aman and Chief Minister Datuk Seri Hajiji Noor, aiming to expedite the review process in line with the court's timeline. However, critics argue that the government's efforts have not met the "serious and sustained engagement" required by the judgment. The Sabah Law Society (SLS), which initiated the judicial review, has cautioned that delays could undermine both the High Court's ruling and the constitutional process. SLS president Datuk Mohamed Nazim Maduarin emphasized that compliance demands more than formal discussions, warning that "preliminary or episodic" engagement does not equate to good-faith compliance. "The court’s order carries binding legal consequences and must be implemented with urgency and good faith. The timelines prescribed are integral to the administration of justice," he stated. Nominated Sabah assemblyman Datuk Roger Chin echoed these concerns, noting a lack of significant progress as the review reached the halfway mark of the 180-day timeframe. Chin pointed out that beyond the initial meeting, there have been no negotiations on the quantum owed, no agreed methodology, and no disclosure to support the process, raising questions about the government's commitment to timely implementation. This issue is rooted in Sabah's historical and constitutional rights, with the 40% revenue entitlement being a longstanding point of contention between the state and federal governments. The High Court's ruling aimed to address this by setting clear deadlines for action, but the slow pace of progress has fueled skepticism among stakeholders. Legal experts warn that failure to adhere to the court's timelines could lead to further legal challenges and erode public trust in the government's ability to uphold judicial decisions. The situation highlights the delicate balance between federal-state relations and the importance of transparent, accountable governance in Malaysia. As the deadlines loom, all eyes are on Putrajaya to deliver concrete steps toward implementing the ruling. The coming months will be crucial in determining whether the federal government can translate its stated priorities into actionable outcomes, ensuring Sabah's constitutional rights are fully respected and upheld.

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