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Appeal does not mean rejecting 40pc revenue: Prime Minister
Published on: Monday, March 16, 2026
Published on: Mon, Mar 16, 2026
By: Jonathan Nicholas
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Appeal does not mean rejecting 40pc revenue: Prime Minister
Anwar explained that the appeal was filed to seek clarification over remarks in the judgment that, in the Federal Government’s view, appeared to question or cast doubt on the roles of past national and Sabah leaders involved in shaping the federation.
Kota Kinabalu: Prime Minister Datuk Seri Anwar Ibrahim said the Federal Government’s decision to appeal part of a recent court ruling should not be interpreted as rejecting Sabah’s 40 per cent revenue entitlement.

Speaking at a breaking of fast event at Universiti Malaysia Sabah (UMS), Sunday, Anwar stressed that Putrajaya remains firmly committed to implementing the Malaysia Agreement 1963 (MA63), adding that it is unfair to accuse the Federal Government of neglecting Sabah’s constitutional rights.

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He said the current administration had already taken concrete steps to honour the agreement, including interim financial arrangements with the Sabah Government beginning in late 2022.

According to him, the issue now centres on implementation and technical clarification rather than whether the entitlement exists.

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“The commitment to the 40 per cent is not disputed. As far as this government is concerned, we have given a categorical assurance. It is a firm commitment, a policy decision declared in Cabinet and in Parliament,” he said.

On Oct 17 last year, the High Court acknowledged Sabah’s entitlement to a 40 per cent share of net federal revenue derived from the state for the period between 1974 and 2021, commonly referred to as the “lost years”.

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Last week, Putrajaya filed a notice of motion for a stay of the court order.

Anwar explained that the appeal was filed to seek clarification over remarks in the judgment that, in the Federal Government’s view, appeared to question or cast doubt on the roles of past national and Sabah leaders involved in shaping the federation.

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“We are not appealing the 40 per cent issue. That matter is done. There is no discussion. We are committed to honour our commitment to the people of Sabah.

“But in the judgment there are statements touching on and even questioning the roles of federal leaders since the era of Tunku Abdul Rahman and Tun Abdul Razak, as well as Sabah leaders such as Tun Mustapha, Tun Fuad Stephens, Harris Salleh and Pairin Kitingan.

“For us, those statements are not appropriate. So we bring the matter to court to seek clarification on record,” he said.

He added that raising the matter through legal channels was necessary to correct what the Government considered an unfair portrayal of the historical role played by both federal and Sabah leaders.

Anwar also said critics should acknowledge that the Federal Government has significantly increased allocations to Sabah and Sarawak since the current administration took office, including major spending on water, electricity, infrastructure and flood mitigation projects.

He noted that billions of ringgit in fuel subsidies are also borne by the Federal Government, including RM4.6 billion in diesel subsidies for Sabah and Sarawak this year alone.

Separately, Anwar approved an allocation of RM1.525 million for tahfiz in Sabah.

While acknowledging that frustration over the long-delayed MA63 implementation is understandable, Anwar said accusations that the current leadership deliberately ignored Sabah’s rights were merely political rhetoric.

“It is unfair to suggest that there are leaders in the country deliberately neglecting or denying MA63. That is political talk.” 

At the same event, Anwar said federal development policies must increasingly focus on whether economic growth and investment translate into tangible benefits for ordinary people at the grassroots level.

He pointed out that although Sabah continues to attract growing numbers of foreign tourists due to its stability and natural appeal, more attention must also be given to basic facilities and small businesses that serve the majority of the population.

He said small food stalls and roadside eateries as examples of businesses used by up to 85 per cent of the public but often overlooked in development planning.

“Economic numbers may look impressive, but what matters is whether the programmes truly benefit the people on the ground,” he said.
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