KOTA KINABALU: Condensed story:Tambunan assemblyman Datuk Seri Jeffrey Kitingan has called on the Sabah Government to set up a clear mechanism to ensure the collection and return of the State’s 40 per cent revenue entitlement, saying the issue must be firmly addressed in the 2026 State Budget.
He proposed that all federal revenues collected from Sabah be channelled into a consolidated account in the State on a 60:40 basis, in line with the Federal Constitution.
On arrears dating back to 1974, Jeffrey said negotiations should continue until the true amount is agreed, with federal asset transfers as a possible settlement option.
He added that Sabah’s projected RM6.43 billion revenue for 2026 should include a specific allocation for the 40 per cent Special Grant, citing a High Court ruling that ordered negotiations to conclude within 180 days from Oct 17.
Jeffrey said Sabah’s revenue could be significantly higher if its constitutional rights under MA63 were fully honoured.