Quizzed on the street, PM rejects distinction over Sabah 40pct entitlement

 

Prime Minister Anwar Ibrahim today appeared to dismiss any distinction between federal allocations to Sabah and the 40 percent share of federal revenue collected from the state, which is supposed to be paid as a special grant.

Instead, Anwar’s position appeared to be that the government is giving more than 40 percent it is owed through federal allocations.

This position was stated when the prime minister was quizzed by a member of the public during a walkabout at the Gaya Street market in Kota Kinabalu today.

A video excerpt of the exchange is circulating on social media.

In the video, a person off-camera asked the prime minister when the federal government would pay Sabah its 40 percent entitlement.

In response, Anwar said they should listen to him and not the campaign fodder of others.

Prime Minister Anwar Ibrahim during a walkabout in Kota Kinabalu

“How much (federal revenue) do we collect from Sabah? I will tell you, RM10 billion.

“How much do we give back? RM17 billion,” he said.

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The man then responded by saying that the RM17 billion was a federal obligation, and not the same as the 40 percent revenue share as enshrined in the Federal Constitution.

However, Anwar responded by reiterating that Putrajaya allocated RM17 billion compared to RM10 billion collected from Sabah.

The video ended before the exchange was completed.

Speaking to reporters at the Sabah International Convention Centre later, Anwar reiterated the same points he had made in his exchange with the man.

“He kept saying 40 percent, 40 percent. Listen first, how much did the federal government spend for Sabah, to build schools, for health, doctors, Esscom, border control, defence assets, and all?” he asked.

“If you say (the current arrangement) is not perfect, not satisfactory, fine. But you can never question the fact that we have done more.

“We are committed to assisting Sabah as part and parcel of our agenda. None comparable to what has been done in the past,” he also said.

Payout talks ongoing

Anwar stressed that the current arrangement on special grant payouts between Putrajaya, Sabah, and Sarawak is temporary and that negotiations are still ongoing.

The negotiations, which have been ongoing since 2022, are in line with the Kota Kinabalu High Court ruling that the government must negotiate a new payout deal with Sabah.

Under Article 112C of the Federal Constitution, the 40 percent revenue share is supposed to be paid in the form of a special grant, which Sabah would have full control over.

In Budget 2026, Anwar said the special grant for Sabah would be RM600 million.

Based on the RM10 billion figure, the 40 percent revenue special grant would be RM4 billion.

Anwar’s remarks shed some light on the decision by Sabah Pakatan Harapan chairperson Ewon Benedick to resign as a federal minister yesterday over the 40 percent revenue share.

Ewon had previously threatened to quit if the government appeals against the Kota Kinabalu High Court ruling affirming Sabah’s 40 percent revenue rights.

While the government has not yet decided whether to file an appeal, Ewon said yesterday that he did not expect the Attorney-General’s Chambers to give any different advice to the cabinet - implying that an appeal would be made. - Mkini