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Kota Kinabalu: The State Government respects the Court of Appeal’s decision to allow the Federal Government’s application for a stay of the High Court order on the review of Sabah’s special grant for the Lost Years pending appeal.

Chief Minister Datuk Seri Hajiji Noor (pic) said negotiations should continue in good faith towards reaching an agreement with the Federal Government despite the ongoing court proceedings.

He said the stay order is procedural in nature and maintains the status quo until the Federal Government’s appeal is heard.

Hajiji said the order does not set aside the existing High Court orders, adding that while the review covers the Lost Years from 1974 to 2021, it should not prevent a review for the current years given there is no dispute over the 40 per cent formula.

He added that the State Government remains opposed to the stay but respects the decision, noting the appeal is tentatively scheduled between October 27 and 30, 2026, with an e-review fixed on April 13, 2026.