Masidi says Sabah won't compromise on 'lost years' revenue claim

 

Sabah will not compromise on the settlement involving the “lost years” of its long-delayed 40 percent revenue entitlement, despite national party leaders being part of the state administration, said Deputy Chief Minister II Masidi Manjun.

Masidi (above), who also holds the finance portfolio, stressed that the inclusion of federal-aligned parties such as Pakatan Harapan and BN does not weaken Sabah’s negotiating position.

He said these leaders are “Sabahans first” and equally committed to restoring the state’s constitutional rights.

“The leaders from Harapan and BN in the state government are also Sabahans.

“The question of national-party influence does not arise. They too want to see the 40 percent materialised after all the lost years,” he told reporters when clocking in at Menara Kinabalu in Kota Kinabalu today.

On Oct 17, the Kota Kinabalu High Court ordered both the state and federal governments to resolve the “lost years” issue within 90 days, and to conclude remaining related matters within a further 90 days.

The “lost years” refer to the period after 1974, when the federal government did not fulfil the mandatory revenue reviews or return Sabah’s constitutional entitlement.

‘Law is clear’

Masidi said the state government would not entertain any proposal that falls short of the constitutional formula under Article 112C of the Federal Constitution and the 10th Schedule, which entitles Sabah to 40 percent of all federal revenue collected from the state.

The Sabah state assembly building

“The law is clear. It says 40 percent, and that law is part of our Constitution. I do not think you can compromise on constitutional provisions,” he said.

He confirmed that Sabah has submitted its revenue calculations to Putrajaya but said the figure would not be disclosed publicly until the joint federal–state committee reviews it.

The negotiations are unfolding under a 90-day deadline imposed by a recent High Court ruling, which Masidi said has transformed the issue from a political debate into a binding administrative obligation.

“Whether we like it or not, we must reach a conclusion within that period. This is now one of our top priorities,” he said, adding that the state Budget 2026 will be tabled on Dec 12.

Asked about dissatisfaction among some Gabungan Rakyat Sabah assemblypersons over the presence of national party members in the cabinet, Masidi said most concerns had been addressed, though frustration after an election was normal.

“The bigger picture is political stability. Without it, we cannot govern or deliver,” he added.

He noted that more capable leaders had won seats than the number of cabinet posts available, but said their priority should be serving Sabah rather than pursuing positions.

Vote-buying allegations

On a viral video implicating one of his agents in vote-buying, Masidi dismissed the allegations.

“I must be very popular that my name ends up in all sorts of stories. It is sellable, but trust me, nobody gave out money.

“Look at the majority I obtained. You do not need to give any money to win, to be honest,” he said.

Masidi added that the clip did not reflect the conduct of his campaign and urged the public to be cautious of unverified claims.

Strong opposition welcomed

Touching on Warisan’s strong presence as the opposition bloc, Masidi said Sabah would benefit from it in ensuring proper scrutiny of the government’s performance.

“We do not treat them as enemies. For us, whether you are on this side or that side, all of us are working on the same thing, to make Sabah a better place for everyone,” he added.

Masidi also stressed that an active opposition was essential for accountability.

“It is good that we have a strong opposition so that they can actually scrutinise the performance of the state government.

“You need a good check and balance so that the government functions properly,” he said. - Mkini