Daily Express Subscriber
Sign in to your account.

EVEN after court’s favourable decision, no end to Sabah’s 40% pains. After listening to Roger Chin’s explanation on the 40% in the Wisdom Foundation forum chaired by Madius Tangau, I have grave doubts that there will be a conclusion any time soon. This 40% is our constitutional right but this right remains as distant as the sun.I stand corrected: all the nice words, beautiful commitments and promise of no appeal on the core decision of the court means nothing.

I am not a lawyer. I got the impression that with the decision of the Court of Appeal, if upheld by the Federal Court, Sabah’s 40% is back to square one. The situation can drag on indefinitum.

History is a good teacher. The lessons from Malayan leaders have been very bad for Sabah. Let me give you a run down on the bad faith of Malayan leaders on Sabah’s entitlement of 40%.

[1] Hussein Onn.

As Prime Minister of Malaysia from 1976 to 1981, Tun Hussein Onn’s position on Sabah’s 40% revenue entitlement was characterized more by administrative neglect and federal centralization than by an explicit policy rejection.

During his tenure, the constitutional requirement for a periodic review of the Special Grant [as mandated by Articles 112C and 112D of the Federal Constitution] was essentially ignored, marking the start of what is now legally referred to as the “Lost Years.”

Maintenance of the Status Quo [1974–1981]

Under Hussein Onn, the federal government continued to pay Sabah a fixed annual amount of RM26.7 million. This figure was set during the first review in 1970 [covering 1969–1973] and was supposed to be reviewed again in 1974. The 1974 review never happened in Hussein Onn’s time.

By failing to trigger the review, the federal government effectively bypassed the 40% formula in favour of a stagnant, fixed-sum grant.

Summary of Hussein Onn’s Position:

Constitutional Silence: He allowed the 1974 review deadline to pass and remain dormant.

Fiscal Prioritization: He prioritized federal funding for national development projects over  the specific revenue-sharing rights of Sabah. Sabah has received peanuts.

[2] Mahathir

Mahathir’s position on Sabah’s 40% net revenue entitlement has shifted significantly over the decades, moving from administrative silence to fiscal rejection, and finally to a recent acknowledgment that the system requires “correction.”

His stance is best summarized through three distinct periods:

The “Fiscal Impossibility” Period [2018–2020]

As Prime Minister for the second time [Pakatan Harapan], Mahathir took the firm stance against immediate implementation of the 40% formula. His reasons are:

[a] The “Bankruptcy” Argument: He famously stated in 2019 that the federal government “could not afford” to pay the 40% entitlement, claiming that doing so would “bankrupt” the federation. He cited the RM1 trillion national debt as the primary obstacle.

[b] The “Too Much” Logic: He argued that the 40% figure was formulated when the federal government’s revenue from Sabah was small. He contended that because revenue had grown so significantly [largely due to oil and gas], returning 40% would leave the federal government with insufficient funds for national development [i.e. for development of Malaya].

[c] The Interim Compromise: Instead of the formula, his cabinet increased the fixed special grant from RM26.7 million to RM53.4 million [in the 2020 Budget], framing it as an interim measure while “negotiations” continued.

[d] The Recent “Correction” Stance.

In more recent remarks following the 2025 High Court ruling on the claim, Mahathir’s tone has softened toward the principle of the entitlement while adding strict conditions:

[e] The Petronas “Red Line”: He has been adamant that while revenue-sharing can be reviewed, Petronas must be kept out of the bargaining. 

He insists that the national oil company’s operations and commercial logic should not be compromised by political negotiations over state grants. He shut the door for Sabah to negation for higher revenue share or the 40%. His logic [depriving Sabahans’ 40% entitlement] was that Petronas must remain on the list of Fortune 500 companies.

[f] The Historical “Lost Years” [1981–2003].

During his first 22-year tenure, Mahathir’s position was characterized by administrative dormancy:

The mandatory five-year reviews required by Article 112D of the Constitution were not carried out.

The special grant remained frozen at the 1969 rate of RM26.7 million throughout his entire first premiership.

3. Lim Guan Eng [when he was Minister of Finance]. His stance can be broken down into two primary phases:

[a] The “Financial Capacity” Phase [2018–2020]

As the Finance Minister under the first Pakatan Harapan [PH] administration, Lim was the primary architect of the federal government’s fiscal response to Sabah’s claims.

The “Interim” Double Grant: In the 2020 Budget, Lim doubled the special grant for Sabah from RM26.7 million to RM53.4 million. He framed this as a “sincerity gesture” to show that the PH government was serious about MA63, even while the formal 40% formula remained unresolved and totally ignored.

Fiscal Constraints: At the time, Lim famously argued that the federal government could not immediately fulfil the 40% claim due to the RM1 trillion national debt inherited from the previous administration. He stated that paying the full amount immediately would “bankrupt” the federation, emphasizing that any solution must be “fiscally sustainable.”

4. Anwar Ibrahim.

Summary of Anwar’s position:

Yes! Yes! Yes! mean No! No! No! This is the reality from the Court of Appeal. If upheld by the Federal Court, Sabah’s position is back to square one.

Prime Minister Anwar Ibrahim has adopted a “commitment with procrastinations” stance on Sabah’s 40% revenue entitlement. Unlike previous administrations that often-cited financial inability, Anwar has explicitly recognized the 40% formula as a settled constitutional right, while simultaneously manipulating the fiscal and legal hurdles of its implementation. His position can be summarized into four key points:

[1] The “Finality” of the Claim

As of early 2026, Anwar has repeatedly declared that the federal government no longer disputes the validity of the 40% claim. He has famously stated:

“Case Closed”: In March 2026, he asserted that the 40% entitlement is “final” and not subject to further negotiation or appeal.

Constitutional Duty: He frames the fulfilment of Article 112C as a core part of the Malaysia Agreement 1963 [MA63] and a priority for his “Madani” government.

[2] The “Interim Payment” Strategy

Recognizing that calculating the exact “net revenue” for the “Lost Years” [1974–2021] is a massive technical challenge, Anwar implemented an interim solution:

RM300 Million Grant: His administration significantly increased the interim special grant for Sabah to RM300 million [up from the RM125.6 million set by the previous government and the RM26.7 million historical rate]. This was enlarged to RM600m.

[3] “Phased Fulfilment”: He argues that while the 40% formula is being finalized, these increased interim payments ensure Sabah receives immediate fiscal relief without waiting for a decades-long audit to conclude. [Which means, Sabah will wait for decades for full payment of 40%]

5. What is common the factor among Hussein Onn, Mahathir, Anwar and Lim Guan Eng on Sabah’s 40%? 

It is blatantly obvious. They are all the same. It means “PROCRASTINATIONS”. The reality is that Hussein Onn had refused to pay. Mahathir and Lim Gun Eng have said the Federal Government can’t afford to pay. Both Badawi and Muhyiddin have refused to pay. Lastly Anwar’s “yes” means “No”. This is it UNLTIL I SEE THE $ WHICH IS HUGELY OVERDUE.

All these Malayan leaders are champions of procrastination.

Where is Sabah heading with this 40% after more than 65 years? 

Roger Chin has given the most succinct run down of Sabah’s position. The bottom line is with the decision of the Court of Appeal, if upheld by the Federal Court, the 40% dream will remain DELUSIONARY. It is not beyond imagination that Sabah may never get this 40%. 

Sabah must never accept excuses of the Federal Government for non-payment of 40%. These excuses are totally unacceptable. 

[1] No records of receipts of revenue from Sabah?

Now, Mustapha Sakmud, who is a Sabahan, has revealed that records have been established from 2007 to 2025. 

https://www.freemalaysiatoday.com/category/nation/2026/04/15/putrajaya-sabah-reach-clearer-understanding-on-40-revenue-claim

3 Issues: 

[a] Tell Sabahans how much the Federal Government is owing us between 2007 to 2025. 

[b] Why continue procrastination? Pay immediately. 

[c] 4o% is Sabah’s constitutional right. The Federal Government is obligated to pay Sabah as a top priority over budgets and all other financial obligations. What is the excuse for this procrastination? 

[2] The Federal Government has used the money to develop Malaya and deprived Sabah.

[3] Hundreds of billions have been used for infrastructures in Malaya. Sabah has been neglected totally.

[4] The Federal Government has managed the country badly with wastages, financial leakages, massive corruption. National debts have exceeded more than RM1 trillion. Sabahans are equally liable for these national debts but have been deprived of 40%.

PROCRASTINATION GAME OF MALAYAN LEADERS ON SABAH’S 40% CLAIM 

PMs/Lim Guan Eng Status of the 40% Claim Procrastinations/Excuses 

Hussein Onn Frozen. Sabah’s claim ignored. Ignored periodic reviews; focused on resource centralization at the expense of Sabah. 

Mahathir Peanut increase. Excuse: Federal government bankruptcy. Doubled the grant [2019] but cited “bankruptcy” as a barrier. Peanut increase. He dismissed Sabah’s 40% claim to protect Petronas’s FORTUNE 500 status. 

Badawi No action, no progress. Took Sabah as “Fixed Deposit”. Gave SDC infrastructure projects. Sidelined Sabah’s 40% claim.  

Muhyiddin Promises!! Nothing! Formed MA63 councils; Promised “100% return” as an election pledge. Absolutely nothing done! 

Anwar Ibrahim Where and when is the money for Sabah? Anwar’s Sincerity needs proof in payment NOW. 

7. Sabah leaders must unite and fight for the 40%. Roger China is best to table a motion in DUN on 40% for all politicians to support because:

[1] Hajiji has been wise to nominate Roger Chin, a non-politician as a Nominated Assemblymen. Roger is the only one out of the 79 DUNs: 

[a] who is truly independent politically.

[b] who has no narrow, selfish political or personal agenda. He does not belong to any party.

[c] He has the courage to initiate thedlegal fight for 40% as SLS Chairman.

[d] He has the support of the 40% Sabahan legal top brain who has won in the High Court.

Best in Sabah’s interest is to let Roger table the motion on 40% in DUN. By so doing, it will give an opportunity for all DUN to give bipartisan support and send a crystal message to Malayan leaders. 

[2] Any other assemblyman who tries to table another resolution for political gains at the expense of Sabah’s interest, will divide Sabahans.

[3] To express all Sabahans’ disgust at the procrastination of this 40% by Malayan leaders, Sabah voters must unite in the next Parliamentary election by voting for Sabah parties only.  

After 65 years of bad treatments, Sabahans must UNITE and ASSERT our constitutional rights. 

Malayan leaders cannot be trusted to deliver the 40% to Sabahans.

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