KOTA KINABALU: State–Federal discussions on Sabah’s 40 per cent state revenue entitlement are ongoing at the technical and efficiency levels and have yet to enter formal negotiations, Deputy Chief Minister Datuk Seri Masidi Manjun (
pic) said.
He said the process remains focused on preparatory groundwork to ensure smooth and conclusive implementation, adding that the absence of public updates had led to a perception that no progress was being made.
Advertisement
Masidi, who is also Finance Minister, said the current stage involved data collection and the establishment of a solid foundation to facilitate negotiations and finalise the process.
Commenting on calls for a bipartisan committee, he said a court ruling had already settled the question of entitlement, making the issue one of implementation between the Sabah State Government and the Federal Government.
On Oct 17, 2025, the Kota Kinabalu High Court ruled that the Federal Government acted unlawfully in failing to pay Sabah 40 per cent of net revenue under Article 112C of the Federal Constitution and the Malaysia Agreement 1963, ordering a review of the entitlement for 1974–2021 following a judicial review filed by the Sabah Law Society (SLS).
