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Federal-State committee set up to implement Sabah’s 40pc revenue claim: Fadillah
Published on: Monday, November 17, 2025
Published on: Mon, Nov 17, 2025
By: Bernama
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Federal-State committee set up to implement Sabah’s 40pc revenue claim: Fadillah
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KOTA KINABALU: A special committee involving the federal and state governments has been established to discuss the mechanism for implementing Sabah's 40 per cent net revenue claim as outlined in the Malaysia Agreement 1963 (MA63), said Deputy Prime Minister Datuk Seri Fadillah Yusof (pic).

Fadillah, who is also the chairman of the MA63 Implementation Action Council Technical Committee (JKTMPMA63), said the special committee would be co-chaired by Sabah State Secretary Datuk Seri Safar Untong and Treasury secretary-general Datuk Johan Mahmood Merican.

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He said the special committee would report to JKTMPMA63, although the committee could also report directly to the Cabinet regarding the discussions and mechanisms to be implemented.

"The time frame (for implementation discussions) is very short. The negotiations began today, the committee was formed, and if possible, they will detail the implementation (process).

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"I’m waiting for the report and the outcome of the discussions. It’s important to form the committee and provide recommendations to the government… We’ll wait for the full report later," he told reporters at Menara Kinabalu today.

Earlier, Fadillah held a meeting with Chief Minister Datuk Seri Hajiji Noor at Menara Kinabalu, which was also attended by Safar, Johan and Sabah State Attorney-General Datuk Brenndon Keith Soh.

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On Oct 17, the Kota Kinabalu High Court ruled that the federal government had acted unlawfully and beyond its constitutional powers when it failed to fulfil Sabah’s right to 40 per cent of the federal net revenue derived from the state for over four decades.

The court also ordered a review to be carried out within 90 days, while a mutual agreement between the two governments must be reached within 180 days from the date of the order regarding Sabah’s claim to the special 40 per cent entitlement for the period from 1974 to 2021.

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Fadillah said the special committee would discuss, among other matters, the terms of reference for implementing the claim, and this would be further discussed with the new state government to be formed after the 17th Sabah State Election on Nov 29.

“The federal government has already decided it will not appeal the 40 per cent claim, so the federal Cabinet has decided to hold discussions (with the state government). Since there is currently only a caretaker government, what is more important for now is to meet first,” he said.

Polling for the state election is on Nov 29, with early voting on Nov 25.
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