Kota Kinabalu: The Democratic Action Party (DAP) urged for the immediate resolution of Sabah’s 40 per cent net revenue entitlement to avert a looming constitutional crisis.
It warned that the window for a negotiated settlement is rapidly slamming shut, with a court-mandated deadline of April 15, 2026, now only six weeks away.
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It said failure to reach an agreement by this date would not only be a betrayal of the Malaysia Agreement 1963 (MA63) but trigger “severe legal repercussions” that could throw the nation into uncharted judicial territory.
The statement stressed that if the April 15 deadline passes without a signed agreement, the matter will inevitably return to the courts.
Such a scenario could lead to a court-imposed payment schedule, potentially stripping the federal government of its ability to negotiate terms and creating a significant strain on the national budget, the statement added.
The urgency follows a high-level special briefing spearheaded by Tuaran Member of Parliament, Datuk Seri Wilfred Madius Tangau.
The session saw a rare convergence of Sabah’s political and legal minds, bringing together MPs (Member of Parliament) , senators, and the Sabah Law Society (SLS) to evaluate the Federal Government’s progress — or lack thereof — in honouring the 180-day court mandate.
Despite the judicial clock ticking since late 2025, DAP leaders highlighted a “disturbing lack of a roadmap” from the executive branch.
The 180-day window was specifically designed by the High Court of Kota Kinabalu to allow for an amicable implementation of the 40pc payment mechanism. However, representatives at the briefing expressed concerns that the federal side appears sleepwalking on the matter.
DAP said the 40pc revenue entitlement is not a negotiable “handout” but a core constitutional obligation under Article 112C and Part IV of the Tenth Schedule of the Federal Constitution.
The provision mandates that 40pc of all net revenue derived by the Federal Government from Sabah must be returned to the state.
“This is a matter of constitutional compliance and historical justice for the people of Sabah,” it said.
“Time is ticking. We are rapidly approaching the deadline, yet there is still no clear indication of how this payment will be executed.”
With the deadline looming, DAP called for a continuous, high-level negotiation blitz between the federal Treasury and Sabah state officials.
The time for briefings and committees has passed; the time for a bankable, legal settlement is now.
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