Kota Kinabalu: The full implementation of Sabah’s rights under the Malaysia Agreement 1963 (MA63), including the 40 per cent special grant of net revenue, must no longer be delayed, said Senator Datuk Bobbey Suan.
He said the High Court ruling in October 2025 in favour of the Sabah Law Society should be used as the basis for restructuring the fiscal relationship between the Federal Government and Sabah.
Bobbey welcomed the Federal Government’s RM6.9 billion allocation to Sabah and the increase in the Interim Special Grant to RM600 million as part of efforts to address MA63-related issues.
“MA63 is the constitutional foundation of Sabah’s position in the Malaysian Federation.
“The court ruling confirming the Federal Government’s obligation under Articles 112C and 112D of the Federal Constitution has restored public confidence in Sabahans’ long-standing rights,” he said.
Speaking during the debate on the Supply Bill 2026 (Madani Budget) in the Dewan Negara on Monday, Bobbey said the 40 per cent entitlement must be finalised through a fixed constitutional formula, with a transparent mechanism and a regular payment schedule that is not affected by changes in administration.
He said Sabah needs consistent fiscal capacity to address issues such as water supply problems, electricity network weaknesses, rural infrastructure development, education and human capital.
Bobbey highlighted two major power supply incidents in 2025 that disrupted Sabah’s productivity.
“The first involved statewide power rationing in August due to maintenance work at the Petronas Kimanis Gas Terminal, which caused a loss of 195 megawatts of capacity and affected more than 600,000 households for seven days.
“The second involved the collapse of the 275kV Kolopis-Segaliud transmission line, which caused major outages in Sandakan, Lahad Datu, Tawau, Semporna, Kunak and Beluran,” he said.
He welcomed the approval of the Southern Link Project under the 2026 Budget, involving a 330-kilometre 275kV transmission line from Sipitang-Tenom-Kalabakan to Tawau, expected to improve power stability on the east coast by 200MW.
“Many investors are waiting for certainty in power supply. The Southern Link Project must be expedited,” he said.
Bobbey also criticised delays in Federal project implementation in Sabah due to lengthy approvals and rigid tender procedures.
He said although Sabah receives large allocations, not all of them can be fully spent within the year.
To address this, he supported the Sabah Government’s move to establish the Sabah Trust Fund to retain unspent allocations.
He proposed that all federal funds to Sabah be channelled into the Trust Fund so that any surplus can be carried forward for continuous project implementation.
Bobbey also said Sabah’s food self-sufficiency level stands at 22.8 per cent, with most food supplies still being imported.
He urged higher allocations for Sabah’s farmers to strengthen food security and manage the cost of living.
“Sabah recorded 3.14 million tourist arrivals in 2024, almost double from the previous year and the state now handles 100 international flights a week and 366 domestic flights weekly,” he said.
Bobbey said community-based tourism has played a key role in creating jobs, supporting rural economies and ensuring benefits reach local communities.
He called for special federal funding to further develop community-based tourism in Sabah.
“The Madani Budget 2026 will only be effective if bureaucracy is reduced, MA63 rights are fully honoured and all allocations are implemented transparently,” Bobbey said.
