Sabah 40% Revenue Talks: Next Round Within Two Weeks, Fahmi Confirms
PUTRAJAYA, Jan 14 — The Federal Government has confirmed that the second round of negotiations concerning Sabah's 40 per cent revenue entitlement is s...
PUTRAJAYA, Jan 14 — The Federal Government has confirmed that the second round of negotiations concerning Sabah's 40 per cent revenue entitlement is scheduled to take place within the next one to two weeks. Communications Minister Datuk Fahmi Fadzil, who also serves as the spokesperson for the Madani Government, made this announcement during a post-Cabinet meeting press conference held here today.
Fahmi stated that the upcoming meeting will involve key officials, including Treasury secretary-general Datuk Johan Mahmood Merican and Sabah State Secretary Datuk Seri Safar Untong. This session is intended as a continuation of preliminary discussions that were initiated in November, marking a critical step forward in addressing this long-standing fiscal issue.
"The Cabinet today also discussed the status of the implementation of Sabah’s 40 per cent revenue entitlement, and I have obtained confirmation from the Treasury secretary-general on the number of meetings that have taken place within the 90-day period," Fahmi explained. He emphasized that the initial 90-day period, which was mandated following the Kota Kinabalu High Court decision on the matter, concludes today. During this timeframe, negotiations were required to commence, adhering to the judicial directive.
The backdrop to these negotiations dates back to October 17, when the Kota Kinabalu High Court affirmed Sabah's constitutional right to receive 40 per cent of the revenue derived from the state. This ruling has since catalyzed a series of discussions between federal and state authorities, aiming to operationalize this entitlement in a manner consistent with historical agreements and contemporary governance frameworks.
Fahmi further noted that Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud is expected to issue a comprehensive statement on the latest developments in the near future. This announcement is anticipated to provide additional clarity on the procedural and substantive aspects of the negotiations.
In his remarks, Fahmi underscored the Cabinet's awareness of the timeline constraints associated with this process. While negotiations were required to begin within the first 90 days, the overall payment mechanism and several other critical details must be finalized and mutually agreed upon by the Federal Government and the Sabah state government within a total of 180 days. "There is therefore another 90 days remaining, but the government’s commitment is to honour the agreements made by Malaysia’s founding leaders, including matters related to the Malaysia Agreement 1963 (MA63) concerning Sabah’s 40 per cent revenue entitlement," he affirmed.
The reference to MA63 is particularly significant, as it underscores the historical and legal foundations of Sabah's claim. The Malaysia Agreement 1963, which established the Federation of Malaysia, included provisions aimed at safeguarding the interests of Sabah and Sarawak, including revenue-sharing arrangements. The current negotiations are thus not merely a matter of administrative compliance but are deeply rooted in the nation's constitutional and historical commitments.
As the process moves forward, stakeholders will be closely monitoring the outcomes of the upcoming meeting. The involvement of high-ranking officials from both the federal and state governments signals a concerted effort to address this issue with the seriousness it warrants. The negotiations are expected to cover a range of topics, including the methodology for calculating the 40 per cent entitlement, the mechanisms for disbursement, and the oversight frameworks to ensure transparency and accountability.
The resolution of this matter holds substantial implications for Sabah's fiscal autonomy and development trajectory. A successful outcome could enhance the state's capacity to fund infrastructure projects, social services, and economic initiatives, thereby contributing to regional equity and national cohesion. Conversely, any delays or disagreements could exacerbate existing tensions and undermine public confidence in the governance process.
In conclusion, the announcement by Datuk Fahmi Fadzil marks a pivotal moment in the ongoing dialogue over Sabah's revenue rights. With the next round of talks set to occur within two weeks, all parties involved are poised to engage in substantive discussions that will shape the future of federal-state fiscal relations in Malaysia. The commitment to honoring historical agreements, as reiterated by Fahmi, provides a foundation for constructive engagement and, ultimately, a resolution that aligns with the principles of justice and partnership enshrined in the nation's founding documents.
