The Sabah government, led by caretaker Chief Minister Hajiji Noor, has pledged to work closely with Putrajaya to implement a Kota Kinabalu High Court ruling that upholds the state’s constitutional right to 40% of federal revenue derived from Sabah.
In a statement welcoming the court’s decision, Hajiji emphasised that the collaboration would be pursued “in the spirit of cooperation and mutual respect” to ensure Sabah’s constitutional entitlements are fully realised.
Decades-Long Pursuit of Justice
Hajiji highlighted the state’s persistent efforts to secure this entitlement, noting that Sabah had raised the issue through every formal channel, including Malaysia Agreement 1963 (MA63) meetings and numerous letters to the federal government. “With this decision, we hope that the federal government will fulfil its responsibilities as agreed upon during the formation of Malaysia,” he said, underscoring the historical significance of the ruling for the state’s financial autonomy.
Court Orders Swift Resolution
The Kota Kinabalu High Court, in a ruling delivered earlier today by Judge Celestina Stuel Galid, declared that the federal government had acted unlawfully by failing to honour Sabah’s 40% revenue share for nearly five decades. The court mandated that both the federal and Sabah state governments reach a mutual agreement within 180 days, as stipulated under Article 112D of the Federal Constitution, which requires periodic reviews of such financial grants.
Sabah Law Society’s Pivotal Role
The case originated from a judicial review filed by the Sabah Law Society (SLS) in 2022, which argued that the federal government had breached the Federal Constitution by neglecting mandatory revenue reviews every five years since 1974. Hajiji praised the SLS for its public interest litigation, which brought the long-standing issue to the forefront and culminated in today’s landmark decision.
Strengthening Federal-State Ties
The court’s ruling marks a significant step towards addressing historical grievances under the MA63 framework, reinforcing Sabah’s position in Malaysia’s federal structure. As the state prepares to engage with Putrajaya, the focus remains on fostering a cooperative approach to secure the financial rights owed to Sabah, ensuring benefits for its people and future development.
