First top-level meeting on Sabah’s 40% entitlement next month

Officials will discuss the mechanism and parameters, including how many payment phases there would be in a year.

Prime Minister Anwar Ibrahim (right) shaking hands with domestic trade and cost of living minister Armizan Mohd Ali of GRS during an event in Kota Kinabalu, Sabah, today. (Bernama pic)

PETALING JAYA:

 The first top-level meeting on returning Sabah’s entitlement to 40% of federal revenue derived from the state will be held in the middle of next month, with officials to discuss the mechanism and parameters for this.

Prime Minister Anwar Ibrahim said returning this right to Sabah was final, but would only be executed once the relevant processes have been completed.

Anwar said a preliminary meeting at the technical committee level between the Treasury’s secretary-general and the Sabah state secretary was held last month.

“Perhaps we can hold the first meeting before the middle of January to discuss the methods and parameters, so that it truly gives confidence to the people of Sabah.

“This is not about looking for excuses. Certainly, during the recent state election season and occasionally among some parties, including cynical NGOs, they remained cynical about whatever we do.

“But we must look at this matter clearly. I cannot say we will hand it over in January; we must first finalise the parameters, the amount, and how many payment phases there will be in a year,” Anwar, who is also the finance minister, said at an event in Kota Kinabalu, Sabah, today, according to Berita Harian.

He said discussions on the 40% claim could not be held this month because of time constraints and also because four federal minister posts were vacant and needed to be filled first.

“Give me a week or two to think and discuss with party leaders, including chief minister Hajiji Noor, to hear their views before I finalise the (Cabinet reshuffle),” he said.

Anwar said other issues related to the Malaysia Agreement 1963 (MA63) will continue to be discussed and implemented under the council chaired by deputy prime minister Fadillah Yusof.

The revenue-sharing formula has been a contentious issue for decades. Sabah politicians have long called for the federal government to honour the entitlement to 40% of net revenue derived from the state, as agreed upon in 1963.

Use of the formula had been suspended since 1974, with the federal government providing increased special grants to Sabah and Sarawak instead.

In October, the Kota Kinabalu High Court affirmed Sabah’s entitlement to 40% of federal revenue earned in the state, as provided for in the Federal Constitution.

The court also ruled that a post-2021 review conducted by the government on the state’s entitlement was illegal, irrational, procedurally improper and disproportionate.

The Attorney-General’s Chambers said an appeal was necessary to clarify this. - FMT