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Sabah’s 40 Per Cent Revenue Claim Negotiations Progress with Focus on Key Aspects

Kota kinabalu: Negotiations between the federal government and the Sabah state government regarding Sabah's 40 per cent revenue entitlement claim are actively advancing, concentrating on four key areas, according to Datuk Mustapha Sakmud.

According to BERNAMA News Agency, the Minister in the Prime Minister's Department (Sabah and Sarawak), Datuk Mustapha Sakmud, stated that the first area of focus is to finalize the calculation formula based on the federal government's net revenue derived from Sabah, in accordance with Articles 112C and 112D of the Federal Constitution. The second area involves aligning and verifying revenue data, involving key agencies such as the Inland Revenue Board and the Royal Malaysian Customs Department. The third aspect is addressing longstanding unresolved past payments, referred to as 'lost years.'

Mustapha further elaborated that the fourth focus is on discussing a phased implementation mechanism to ensure that payments are carried out in an orderly and continuous manner. He emphasized that these efforts indicate that the negotiations are progressing in a structured and fact-based manner, asserting that the 40 per cent entitlement claim is Sabah's absolute right as enshrined in the Constitution, rather than a goodwill grant.

He also highlighted that the exchange of financial data between the federal government and Sabah for the period from 2007 to 2025 has been successfully carried out, allowing both parties to have a clearer understanding of the figures and calculation methods involved. Regarding the Malaysia Agreement 1963 (MA63), Mustapha mentioned that the MADANI Government has resolved 13 out of 29 targeted matters, demonstrating its continued commitment through the MA63 Implementation Action Council.

To further enhance transparency, Mustapha noted that the 'MA63 Implementation Status Dashboard' has been activated for Phase 1 to monitor baseline progress, with Phase 2 being developed to expand data integration across agencies and enable real-time access to information. He also commented on interim payments, stressing that they are only a temporary solution until a final decision is reached through mutual agreement. Mustapha advocated for increasing the value of the payments to drive infrastructure development for the well-being of the people of Sabah.

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