Kota Kinabalu: Sekong Assemblyman Alias Sani called on the Sabah Government to take a firmer and more transparent stand in negotiations with the Federal Government over Sabah’s constitutional right to 40 per cent of federal revenue collected in the State.
He said the 40pc revenue would shape Sabah’s economic future for generations.
Alias said the RM6.43 billion revenue target outlined in the State Budget was significant but could be “far higher” if Sabah’s 40 per cent entitlement under the Federal Constitution, the Malaysia Agreement 1963 (MA63) and Articles 112C and 112D were fully implemented.
“This is not about asking for charity. This is Sabah’s constitutional right,” he said, adding that full implementation would significantly strengthen the State’s ability to fund development and manage operating costs.
Alias stressed that any formula or mechanism for the 40 per cent revenue share must not be finalised solely at the bureaucratic or technical level, insisting that the State Assembly must be given full authority to debate and approve any agreement before it is signed with the Federal Government.
He questioned whether the State Government was prepared to guarantee that any negotiated formula would be tabled in the Assembly for a full mandate from all elected representatives, including the opposition, which he noted represented nearly half of Sabah’s popular vote.
“We do not want a repeat of major decisions being made without the Assembly’s full consent,” he said, warning that a lack of unity would weaken Sabah’s bargaining position at the negotiating table.
On the payment mechanism, Alias cautioned against any attempt by the Federal Government to offset arrears of the 40 per cent entitlement dating back to 1974 against development grants, stressing that development grants and revenue rights were separate obligations.
He proposed that payments be made automatically and quarterly directly to the State Treasury to ensure consistent cash flow, rather than being subject to annual disbursement or federal discretion.
Alias also criticised the absence of a dedicated revenue account for the 40 per cent entitlement in the Budget 2026 documents.
He argued that under accrual accounting principles, the State should establish a specific account code, even with a nominal “token vote”, to demonstrate readiness and seriousness in receiving the funds.
Turning to poverty, Alias challenged claims that hardcore poverty had been eradicated in Sabah. While acknowledging a reduction in the poverty rate from 19.7 per cent to 17.7 per cent, he pointed out that Sabah still recorded the highest poverty rate in Malaysia.
He cited cases in Sekong where families struggled to meet basic needs, including a single mother earning RM1,300 a month and supporting eight children, as evidence that hardcore poverty remained a reality on the ground.
Alias also criticised welfare eligibility rules that disqualified elderly applicants solely because they had children, even when both parents and children were living in poverty.
He said that of more than 200 welfare applications his team had assisted, only two had been approved.
He urged the relevant ministry to urgently review welfare policies and questioned what concrete measures had been introduced under the 2026 Budget to lift eight districts out of Sabah’s poorest category.
On education, Alias sought clarity on how much of the Federal Government’s RM66.2 billion education allocation would be channelled to Sabah, calling for a detailed breakdown and greater transparency.
He proposed a priority listing of dilapidated schools with progress reports every six months, additional funding for rural schools including digital learning support, and stronger TVET collaboration to prepare youths in Sandakan for opportunities in logistics, port services and related industries.
Alias also raised concerns over reports of students at SMK Elopura studying without sufficient textbooks, urging the Education Ministry to investigate and take immediate action if the claims were proven true.
He described the long-standing water supply problems in Sandakan, including Sekong, as unresolved despite announcements of large-scale upgrade projects.
He called for a dedicated Sandakan water task force with clear key performance indicators, short-term solutions such as additional water tankers and community filtration systems, and a comprehensive engineering audit of treatment plants and ageing pipelines.
On infrastructure, Alias pressed the Government for updates on clean water projects in Kampung Bambangan, road projects connecting Kampung Gas, Kampung Bahagia, IOI and Ulu Sibuga, the construction of homes for fire victims in Kampung Gas and the long-delayed health clinic for the Sekong islands, which serve more than 5,000 residents.
Alias said Sabahans were no longer interested in budget figures alone but wanted improvements they could feel in their daily lives.
“People want stable water and electricity, safe roads, real job opportunities and dignity in their lives. What they need now are clear timelines and real delivery, not just announcements,” he said.
