Thu, 9 Apr 2026
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Government leaving 40pc issue entirely to court: Minister
Published on: Monday, April 06, 2026
Published on: Mon, Apr 06, 2026
By: Sherell Jeffrey
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Government leaving 40pc issue entirely to court: Minister
Mustapha said discussions between the Attorney General’s Chambers and the Ministry of Finance were ongoing as usual, with the AGC requesting additional time to allow negotiations to be concluded properly.
Kota Kinabalu: Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud said the Federal Government will abide by whatever decision the court makes regarding Sabah’s 40 per cent revenue entitlement.

On March 31, the Court of Appeal concluded hearing the Federal Government’s application for a stay of execution in relation to the Sabah 40 per cent matter.

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The panel fixed April 6 for the delivery of its decision. “We are leaving this to the court. We hope the court will give due consideration. We will abide by whatever decision the court makes,” he told reporters after distributing aid to fire victims in Kampung Gudon, Manggatal, Sunday.

Mustapha said discussions between the Attorney General’s Chambers and the Ministry of Finance were ongoing as usual, with the AGC requesting additional time to allow negotiations to be concluded properly.

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“The AGC has only requested more time for these consultations. What is important is that we resolve this harmoniously so that the relationship between the Federal Government and the State Government remains intact,” he said.

He said his role as minister was to serve as coordinator between Putrajaya and the State Government and that the priority remained reaching a mutually agreed arrangement on how the 40 per cent revenue entitlement would be implemented.

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“What is most important is how we negotiate the implementation of this 40 per cent at a rate agreed upon by both sides. We also need to take into account the financial position of the Federal Government as we work to implement this,” he said.

He is optimistic with the recent statement by the Sabah Law Society (SLS), saying the statement indicated a better understanding that the Federal Government had not contested the 40 per cent revenue entitlement claim itself.

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“I am glad that after the March 31 hearing, it appears there is already a clearer understanding that the Federal Government did not appeal the 40 per cent. What is needed now is negotiation and time to resolve this matter,” he said.
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