Sabah’s
40% Entitlement: RM3.019 Billion Is Not Constitutional Compliance.
I
refer to the recent winding-up speech by the Sabah Minister of
Finance Datuk Seri Masidi Manjun during the State Legislative
Assembly sitting from 27 to 30 April 2026, in which a figure of
RM3.019
billion
was presented as
Sabah’s entitlement arising from the calculation of federal revenue
derived from the State.
With
respect, that presentation raises a fundamental constitutional issue
that cannot be ignored.
The
figure cited is premised on a
selectively
defined revenue base,
which expressly excludes major revenue streams, particularly oil and
gas and related federal taxation. Any such exclusion is not a mere
technical adjustment, it goes directly to the
legal
integrity and constitutional validity
of the computation
under Article 112C of the Federal Constitution and the Malaysia
Agreement 1963 (MA63).
Let
this be stated without qualification: Sabah is not a beggar, and we
will not accept charity disguised as entitlement. We demand exactly
40% as guaranteed by the Constitution, every cent due, nothing more,
nothing less. The Federal Government must now discharge its
obligation in full.
A
calculation that excludes substantial revenue derived from Sabah
cannot be presented as full compliance with Sabah’s 40%
constitutional entitlement.
The
central question remains unanswered by the Minister’s speech:
Who
determines the scope of “revenue derived from Sabah” and under
what legal authority are critical sectors such as oil and gas
excluded?
Until
there is a
transparent,
jointly agreed, and legally defensible definition of revenue,
any figure, including RM3.019 billion, must be regarded as
incomplete,
provisional, and constitutionally contestable.
It
is equally concerning that the Government continues to rely on
interim fiscal narratives in a manner that risks misleading the
public into believing that partial payments constitute resolution.
This is not only inaccurate but undermines the seriousness of Sabah’s
constitutional position.
That
said, we take a responsible and constructive stance.
We
welcome and fully support any move by the Federal Government to
increase interim grants to
not
less than RM3 billion per annum
for Sabah as a
non-prejudicial
interim payment,
pending the final determination and implementation of the full
Article 112C mechanism.
However,
this must be stated unequivocally:
An
interim payment, regardless of its quantum, does not and cannot
amount to settlement of Sabah’s constitutional rights.
The
final computation must necessarily include:
-Oil
and gas revenues derived from Sabah;
-All
related federal taxes, duties, and income streams; and
-A
complete and transparent accounting framework consistent with MA63
and the Federal Constitution.
Failure
to include these components raises a serious and unavoidable
implication. That Sabah’s entitlement has been
systematically
under-recognised,
and that any such shortfall must be subject to full
reconciliation and lawful restitution.
Every
cent that has been excluded or underpaid is not a matter of
discretion.
It
is a matter of constitutional obligation owed to the people of Sabah.
Sabah
does not require political interpretation.
Sabah
does not accept partial accounting.
Sabah
demands full constitutional compliance.
The
Federal Government must now move beyond selective calculations and
interim narratives, and commit to a
legally
defined, transparent, and enforceable implementation framework
that gives full
effect to Sabah’s 40% entitlement, in substance, not merely in
form.
YB
CHIN TEK MING
ADUN
N.25 KAPAYAN
6.5.2026
