Wed, 21 May 2025
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PM's remarks on 40pct revenue insulting to Sabahans: Ex-SLS president
Published on: Saturday, June 01, 2024
Published on: Sat, Jun 01, 2024
By: Julia Chan, Malay Mail
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PM's remarks on 40pct revenue insulting to Sabahans: Ex-SLS president
KOTA KINABALU: A former president of the Sabah Law Society (SLS) said Prime Minister Datuk Seri Anwar Ibrahim’s remarks yesterday concerning the state’s right to 40 per cent of revenue is inappropriate and insulting to Sabahans, even as the state government is engaged in a lawsuit against the federal government.

Datuk Roger Chin (pic) said that Anwar’s statement that the federal government had "given far more than 40 per cent” in its 2024 RM16 billion development expenditure showed failure to understand the underlying constitutional right as sought by Sabah.

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"An increased allocation compared to previous years may appear generous on the surface, a closer examination reveals that this allocation does not adequately address the fundamental issue of Sabah's 40 per cent net revenue entitlement under the Malaysia Agreement 1963 (MA63).

allocations rather than being empowered through its rightful revenue share.

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"It also fuels the perception that Sabah's contributions to the national economy are not adequately recognised or reciprocated, fostering resentment and dissatisfaction.

"To address these issues, the federal government must honour its commitments under MA63 and ensure that Sabah receives its full 40 per cent net revenue entitlement as a special grant. This grant should be free from federal oversight, allowing Sabah to exercise its financial autonomy fully. Additionally, the government must engage in genuine dialogue with Sabah's leaders and civil society to address the state's unique challenges and aspirations,” he said.

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Yesterday when officiating the closing ceremony of the state-level Ka'amatan festival, Anwar said that the federal government had done better to solve the MA63 state issues in its one and half years compared to the previous 10 years.

He said certain lawmakers should not be so quick to criticise the federal government for not fulfilling its 40 per cent obligation when they have been given substantial allocation of RM16 billion which "far exceeds” the 40 per cent.

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He also said that he hoped that the issue would be resolved soon.

The 40 per cent return of revenue to Sabah is provided for in Article 112C of the Federal Constitution, but has not been abided by in the last 50 years since 1974.

Recently, the state government has said that their queries to the federal government for data and figures to substantiate its 40 per cent have gone unanswered. Discussions are ongoing to determine the mechanism and calculations for the claim.

The SLS is currently suing the federal government for their failure to pay the 40 per cent, and questioning their gazette of an "interim payment” in 2022. – Malay Mail
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