Thu, 26 Mar 2026
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Get the maths right on 40pc and be sincere
Published on: Sunday, November 23, 2025
Published on: Sun, Nov 23, 2025
By: Datuk Seri Saifuddin Abdullah
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Get the maths right on 40pc and be sincere
WHEN Opposition Leader Datuk Seri Hamzah Zainudin proposed the New National Consensus last May, it demonstrated that Perikatan Nasional (PN) has a better future plan for Malaysia.

Its goal is to fix what is broken, especially the economy and politics. Its foundation is leadership that is honest, inclusive and fair.

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Within this framework lies the debate over Sabah's right to 40 per cent of the State's revenue as enshrined in the Malaysia Agreement 1963 (MA63). This debate is about fixing what is broken. Sabah must be given its rights and the Federal Government must be honest, inclusive and fair in implementing them.

The Beluran Member of Parliament who is also Sabah PN Chairman, Datuk Seri Dr Ronald Kiandee (contesting in Sugut in this state election) champions this earnestly. Ronald consistently raises it passionately in the Dewan Rakyat, at the Jelajah Rakyat Sabah 2025 and everywhere else.

This issue is given legal basis by Articles 112C and 112D of the Federal Constitution. It provides the basis for Sabah to claim 40 per cent of the net revenue collected by the Federal Government from Sabah. The purpose is to assist Sabah's development.

Article 112C provides for the 40 per cent right. Meanwhile, Article 112D provides that the amount of special grants from the Federal Government to Sabah needs to be reviewed every five years. Both these articles aim to maintain balanced development between states in Malaysia.

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Articles 112C and 112D distinguish between Sabah's rights (the said 40 per cent) and grants given to Sabah by the Federal government.

The 40 per cent right must be given.

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For instance, for this year the amount is RM4 billion (40 per cent of Sabah's revenue of RM10 billion). In addition to that, whatever amount the Federal Government wants to give to Sabah – that is up to them.

But the Federal Government cannot say it is giving RM17 billion, which is more than RM4 billion. RM17 billion is a grant. RM4 billion is a right. The Federal Government needs to correct its mathematics.

Because Articles 112C and 112D have not been implemented all this while, in 2022, the Sabah Law Society filed for judicial review.

As a result, on Oct. 17, the High Court decided that the Federal Government has a constitutional obligation to conduct a review and pay back the 40 per cent entitlement claim as provided for in Articles 112C and 112D.

However, the Federal Government's reaction to the court decision was flip-flop. At first, it said it would not appeal. After that, it filed an appeal against several grounds of the judgment.

When the Federal Government appeals against several grounds of the judgment, this means the Federal Government is rejecting the findings that led to the court decision.

So, despite the Federal Government stating it is not appealing against the 40 per cent right, in reality the Federal Government's appeal against several grounds of the judgment is, in fact, an appeal against the entire High Court decision regarding the 40 per cent right.

In other words, it is clear that the Federal Government has no intention of implementing Sabah's 40 per cent right!

This is an issue of Sabah's rights, not an issue of aid or grants to Sabah from the Federal Government.

This is the right of Sabah which co-founded Malaysia. We must be honest in giving and implementing this right of Sabah.

Saifuddin is the Member of Parliament for Indera Mahkota and Head of the Education Portfolio for Perikatan Nasional

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my
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