GENERAL

40 PCT SABAH REVENUE SHARE FINAL, GOV'T REMAINS COMMITTED TO FULFILLING CLAIM – PM ANWAR

15/03/2026 09:38 PM

KOTA KINABALU, March 15 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim has once again reaffirmed the MADANI Government’s full commitment to realising Sabah’s 40 per cent revenue entitlement as stipulated under the Malaysia Agreement 1963 (MA63).

Anwar, who is also Finance Minister, said the Federal Government recognises that the claim is final and not subject to appeal, but detailed discussions are necessary to ensure the matter can be resolved in the best way for the benefit of Sabah and its people.

“We (the Federal Government) are not appealing the 40 per cent (Sabah revenue) case and that is final… As far as this government is concerned, we have given categorical assurance, this is a firm commitment, it is a policy decision.

“I have declared in the Cabinet and in Parliament, no negotiations. We are committed to honour our commitment of 40 per cent (of the state's revenue)  to the people of Sabah. Period,” he said.

Anwar said this when speaking at the MADANI 2026 Breaking-of-Fast Event for the Sabah state level at the Central Lecture Hall Complex 2, Universiti Malaysia Sabah (UMS), here today.

Also present were Sabah Chief Minister Datuk Seri Hajiji Noor, Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud, Higher Education Minister Datuk Seri Dr Zambry Abd Kadir, as well as Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

Anwar said the government’s commitment to fulfilling the matter can be seen through meetings between Treasury Secretary-General Datuk Johan Mahmood Merican representing the Federal Government and Sabah State Secretary Datuk Safar Untong representing the state government to ensure clearer details on the implementation mechanism of the claim.

“Our commitment based on MA63 is not disputed. If we look at the statements and the court’s own decision, there is already a commitment through an interim agreement between the Federal Government and the state beginning at the end of 2022 and in 2023, and subsequently after we (the MADANI Government) took over the country’s administration.

“So to me, that is no longer an issue. The question now is how it will be implemented,” he said.

On Oct 17 last year, the Kota Kinabalu High Court ruled that the Federal Government has an obligation to review and repay the entitlement of the 40 per cent net revenue derived from Sabah.

Meanwhile, Anwar also stressed the importance of giving due attention to the development of basic facilities such as small restaurants, stalls and food outlets by the state government for the wellbeing of the people.

“It attracts about 85 per cent of customers but sometimes development planning is considered outdated and that is why the condition of stalls is among the most dilapidated. In Kuala Lumpur I have initiated efforts either to refurbish them or build new stalls so that the comfort and benefits of the majority of the people are ensured.

“Therefore our planning must change, in addition to the importance of attracting tourists to our country,” he said.

-- BERNAMA

 

 

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