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Kota Kinabalu: The State Government of Sabah "categorically" confirms that it will never give up on the fundamental constitutional rights of Sabah in relation to the 40-percent net revenue special grant under Article 112C and 112D of the Federal Constitution, said Chief Minister Datuk Seri Hajiji Noor.

He said this fact is reinforced by the Prime Minister of Malaysia in his 2023 budget speech when he recognised and confirmed that the Federal Government is committed to improving the rate of the special grant compared to what was previously agreed and will expedite the negotiations to find a solution.

"This critical issue is now under the purview of the MA63 Technical Committee chaired by the Deputy Prime Minister," said Hajiji in a statement, referring to the Malaysia Agreement 1963.

"We will continue to defend the State of Sabah’s constitutional rights in relation to the existing revenue sharing formula and this must be respected by the Federal Government. This includes the State's claim for the 'lost years' where there has been no review conducted from 1974 until recently.

"For now, there is an interim arrangement - on a without prejudice basis - where the State receives much more than before pending further negotiations between the State and Federal Government to claim what is rightfully due to the State of Sabah."