Kota Kinabalu: The RM1.5 billion interim payment announced for Sabah’s 40 per cent net revenue entitlement is a starting point but falls significantly short of the Federal Government’s constitutional obligations, said Datuk Seri Dr Jeffrey G Kitingan.
The Parti Solidariti Tanah Airku President said that based on the State’s actual revenue contributions, the entitlement for 2026 alone should be no less than RM5 billion.
Advertisement
.gif)
The reaction follows Prime Minister Datuk Seri Anwar Ibrahim’s recent announcement during the State Kaamatan closing ceremony in Penampang, where he described the RM1.5 billion as an interim measure toward resolving the long-standing claim under the Malaysia Agreement 1963 (MA63) and the Federal Constitution.
“Sabahans know the difference between a payment and a settlement,” Jeffrey said in a statement.
“Every announcement without delivery is another year added to the wait, which already spans more than five decades since 1974,” he said.
Highlighting the disparity in historical funding, Jeffrey pointed out that Sabah received a total of only RM26.7 million during what he termed the Lost Years between 1974 and 2021.
While he acknowledged that payments have increased, rising from RM125.6 million in 2022 to RM600 million in 2025, he maintained they remain insufficient.
“The numbers are indeed rising, but they are still nowhere near the actual 40 per cent,” he said.
Jeffrey also raised concerns regarding a legal contradiction within the Federal administration. He questioned the Federal Attorney General’s (AG) decision to appeal a Kota Kinabalu High Court ruling from October 2025, which had mandated a timeframe of 90 to 180 days to finalise Sabah’s entitlement.
He noted that while the Prime Minister and Cabinet had reportedly opted not to appeal the 40 per cent entitlement itself, the AG’s legal action has created a constitutionally untenable situation.
“Who authorised that appeal? If the Prime Minister did not authorise it, he must say so clearly and instruct the AG to withdraw. If he did, then the RM1.5 billion announcement rings hollow,” Jeffrey said.
He attributed Sabah’s status as Malaysia’s poorest state directly to five decades of systematic underfunding.
Jeffrey said that revenues from oil, gas and timber have been consistently channelled to Putrajaya, leaving the State with chronic deficits in roads, water supply and electricity.
“Sabahans are tired of gula-gula while their constitutional birth right is deferred and delayed,” he said, adding that State leaders who celebrate the interim payment as a total victory bear equal responsibility for what Sabah has lost.
He called on the Federal and Sabah governments to establish an independently verified revenue tracking mechanism within the High Court’s stipulated timeframe.
Additionally, he called for a concrete settlement framework for the Lost Years (1974–2021) and a minimum payment of RM5 billion for the 2026 fiscal year.
“The RM26.7 million paid across 48 years without the constitutionally mandated review says everything that needs to be said,” he said.
