Federal-State Committee Formed to Address Sabah’s 40% Revenue Claim

Kota kinabalu: A special committee involving both federal and state governments has been established to discuss the implementation of Sabah’s claim for 40 per cent of net revenue as outlined in the Malaysia Agreement 1963 (MA63), Deputy Prime Minister Datuk Seri Fadillah Yusof announced. Fadillah, who chairs the MA63 Implementation Action Council Technical Committee (JKTMPMA63), stated that the committee will be co-chaired by Sabah State Secretary Datuk Seri Safar Untong and Treasury secretary-general Datuk Johan Mahmood Merican.

According to BERNAMA News Agency, the special committee is tasked with reporting to JKTMPMA63 and has the authority to report directly to the Cabinet concerning the discussions and mechanisms to be implemented. Fadillah emphasized the urgency of the matter, noting the short time frame for discussions and the committee’s formation to expedite the process. He mentioned awaiting the report and the outcome of discussions, highlighting the importance of committee recommendations to the government.

Earlier discussions took place at Menara Kinabalu, involving Chief Minister Datuk Seri Hajiji Noor, Safar, Johan, and Sabah State Attorney-General Datuk Brenndon Keith Soh. This follows the Kota Kinabalu High Court’s ruling on October 17 that the federal government had acted unlawfully by not fulfilling Sabah’s right to 40 per cent of federal net revenue derived from the state over the past four decades. The court mandated a review within 90 days and a mutual agreement within 180 days regarding Sabah’s claim for the period from 1974 to 2021.

Fadillah mentioned that the special committee would discuss the terms of reference for implementing the claim, which will be further deliberated with the new state government to be formed after the Sabah State Election on November 29. He confirmed that the federal government will not appeal the 40 per cent claim, and discussions with the state government are prioritized. With the current caretaker government, initial meetings are crucial. The state election is scheduled for November 29, with early voting on November 25.