Special Cabinet Meet to Decide on Appeal Over Sabah’s 40% Revenue Entitlement

TAWAU, Nov 10 : The Federal Government will hold a special Cabinet meeting on Tuesday (Nov 11) to decide whether it will appeal the recent High Court ruling affirming Sabah’s entitlement to 40% of federal revenue collected from the state.

Prime Minister Datuk Seri Anwar Ibrahim said the decision cannot be rushed as the ruling was only issued recently. He stressed that the Cabinet must first receive and evaluate the legal advice of the Attorney General.

“The High Court decision only came out three days ago. The Attorney General is the government’s legal adviser, so we have to listen to him first before deciding,” he said after attending the Digital Tour programme in Taman Semarak here on Monday.

Anwar said he has already indicated his personal stance on the matter, but a final decision will only be confirmed during Tuesday’s meeting.

“What is the Problem With the 40%?”

Addressing public confusion and political reactions, Anwar said the Federal Government has already taken steps to fulfil components of the 40% revenue entitlement.

He noted that the special grant allocated to Sabah had been significantly increased  from RM56 million previously to RM600 million annually under the current administration.

“Have we given? Yes, we have. Have we negotiated? Yes, we have. Is it final? Not yet. But this government negotiates and acts. So what exactly is the problem?” he said.

The Prime Minister added that he is not opposed to the idea of not filing an appeal. However, any decision must consider constitutional implications raised by the Attorney General.

“If the Attorney General advises that not appealing may affect the constitutional position, then we must consider that carefully.”

Negotiations to Resume After Sabah State Election

Anwar clarified that further negotiations on the 40% entitlement cannot proceed immediately, as the Sabah government is currently under a caretaker administration ahead of the upcoming state election.

“This country follows the law. Once the election is over and a new government is formed, then negotiations can continue,” he said.

The Prime Minister emphasised that the Unity Government has taken a stronger approach in addressing issues under the Malaysia Agreement 1963 (MA63), particularly in matters concerning development funding and federal-state financial arrangements.