PETALING JAYA: The federal government and Sabah have reached a clearer understanding on the figures and basis for calculating the state’s 40% revenue entitlement, said Sabah and Sarawak affairs minister Mustapha Sakmud.
In a Facebook post, Mustapha said the progress followed a meeting on Tuesday with Sabah Finance Minister Masidi Manjun, where both sides discussed the latest developments in negotiations over the claim.
According to Mustapha, revenue data covering the period from 2007 to 2025 — including records from the Inland Revenue Board and the customs department — has been shared and reconciled between both parties.
“So far, both governments have achieved a clear understanding of the figures and the calculation methodology,” he said, stressing that the negotiations were being conducted in a more practical, phased manner, with the interests of the people of Sabah at the core.
He added that the matter would continue to be refined through the Malaysia Agreement 1963 Technical Committee (JKTMA63) to ensure comprehensive alignment between the State and Federal governments.
“This negotiation is not yet concluded, but it is moving forward. What matters is that we remain committed and continue striving to ensure Sabah’s rights are fulfilled progressively and with certainty,” he said.
Last month, Prime Minister Anwar Ibrahim reiterated that his administration remained committed to honouring and delivering on Sabah’s 40% share of net federal revenue derived from the state.
On Oct 17, the Kota Kinabalu High Court ruled that the federal government had acted unlawfully by failing to honour Sabah’s 40% share of net federal revenue derived from the state for nearly five decades.
The court directed the Federal government to conduct a review with Sabah to determine the quantum of the state’s entitlement for each financial year from 1974 to 2021.
It also ruled that the review must commence within 90 days of the delivery of the judgment and be completed within 180 days, or by April 15.
On April 6, the Court of Appeal allowed the federal government’s application for a stay of execution on the High Court order pending disposal of an appeal.
