Statement on the Prime Minister’s remarks regarding Sabah’s 40% Revenue Entitlement
I welcome the statement by the Prime Minister, Anwar Ibrahim, during his visit to Sabah on 15 March, that the Federal Government is committed to implementing Sabah’s 40% revenue entitlement and will not appeal the High Court decision on this matter.
The acknowledgement that Sabah’s 40% right is final is a positive development. However, after such acknowledgement, what the people of Sabah expect is no longer general commitments, but a clear, transparent implementation with a definite timeline.
The 40% entitlement is not a new issue. It is enshrined in the Federal Constitution under Article 112C and the Tenth Schedule, and has been affirmed by the High Court. The Court has also given the Federal Government 180 days to determine the implementation mechanism. That period should have been sufficient to produce a clear and workable formula.
Until today, fundamental questions remain unanswered:
• When will the payment begin?
• What formula will be used to calculate the amount?
If after six months (180 days) there is still no clear mechanism, then the credibility of the leaders and officials responsible for handling this matter must be questioned. The people of Sabah cannot accept technical reasons as an excuse to further delay a right guaranteed by the Constitution.
In this regard, I propose that the Federal Government take a more practical approach and demonstrate sincerity by proceeding with the payment of the 40% entitlement to the Sabah State Government based on the revenue collected through LHDN for the current year, as this amount can be clearly calculated without waiting for prolonged debates on other sources of revenue.
More complex matters such as revenue from oil and gas, federal government-linked companies, federal agencies, and other sources of income can continue to be discussed in stages without delaying payments that can already be implemented now.
Such an approach will prove that the Federal Government is truly committed to fulfilling Sabah’s rights, and not merely making statements whenever there is an official visit to the state.
I wish to stress that Sabah is not asking for special privileges. Sabah is only demanding what rightfully belongs to the state under the Federal Constitution and the spirit of the Malaysia Agreement 1963.
As a representative of the people, I will continue to speak up until Sabah’s rights are fully implemented.
YB Tham Yun Fook
ADUN N19 Likas
16 March 2026
