More than money: Sabah's quest for fair revenue and fight for 35% parliamentary representation
Pakatan Harapan's decision to withdraw its originating summons marked a strategic shift toward collaborative engagement with the newly formed federal government. Their rationale centers on the establishment of the MA63 Implementation Action Council (JKTMTPMA63) and its Technical Committee.
Datuk Ewon Benedick, a key figure in PH Sabah and a former plaintiff, now holds a significant position within these committees, ensuring direct representation in discussions regarding Sabah's financial claims.
This approach prioritized negotiation and a collaborative path to resolution over protracted litigation. As reported by Sabah News Today, this withdrawal was a calculated move to foster collaboration with the federal government.
This collaborative approach has yielded concrete results. Amendments to the Inland Revenue Board of Malaysia (LHDN) Act 1995 now include Sabah and Sarawak representatives on the LHDN Board, promoting transparency in revenue collection. With the inclusion of representatives from Sabah, Sabah will be able to know how much tax is actually collected from Sabah. Furthermore, the federal government initiated interim payments, demonstrating a willingness to address Sabah's financial concerns while ongoing discussions continue within the established committees. The Federal Government replaced the old 2022 review by increasing the interim payment to RM300 million in 2023, and the subsequent interim payment increased to RM600 million in 2025. This interim payment is temporary until the payment related to this 40 percent is finalized and does not affect Sabah's right to claim special grants based on the 40 percent formula for the years affected, unlike the 2022 review payment made previously by the prior government. While the exact amounts and timelines of these payments are subject to ongoing negotiations, the commitment to interim payments represents a significant step forward. Sabah News Today highlights these interim payments as a tangible outcome of the collaborative approach.
In support of Pakatan Harapan's efforts, it's important to note that the Sabah Government, in addition to pursuing the 40% revenue claim, can also advocate for the reinstatement of a 35% quota of Parliament seats for Sabah, Sarawak, and the Federal Territories. I fully endorse Datuk Seri Wilfred Madius Tangau's urgent appeal, voiced during his parliamentary address, for the swift implementation of Sabah's constitutional entitlement to 40% of net revenue, as enshrined in Article 112C. It is imperative that Sabah's representatives in the MA63 Technical Committee meetings make Tangau's proposal a top priority. The ongoing delay in honoring this constitutional provision is simply not acceptable. These committee members must champion this cause to secure Sabah's prosperity, which will, in turn, drive Malaysia's overall economic progress. The current pursuit of the 40% revenue claim and the reinstatement of the 35% parliamentary representation quota are both rooted in this desire to restore the balance of power and ensure that Sabah and Sarawak receive the treatment they were promised in 1963. Specifically, the 35% parliamentary representation quota originally included Singapore. With Singapore's departure from Malaysia in 1965, that portion of the quota should have been reallocated to Sabah and Sarawak, reflecting their increased importance within the federation. In 1963, Sabah had 16 seats, Sarawak had 24, and Singapore had 15, totaling 55 seats and representing approximately 35% of the overall 159 parliamentary seats. The last time the redelineation of parliamentary seats was conducted was in 2006, with Sabah and Sarawak having 25 and 31 seats respectively, making a total of 56 seats or about 25 percent of the 222 parliamentary seats. Today, Sabah has 25 and Sarawak has 31 out of 222 seats, totaling 56 seats and representing only about 25% of the total. This isn't just about numbers, it's about power. Reinstating the 35% quota would fundamentally shift the balance of power in Parliament, giving Sabah and Sarawak the amplified voice they need to protect their rights, promote their development, and ensure their concerns are finally heard at the national level. This pursuit aligns with the original spirit of the Malaysia Agreement 1963 (MA63), ensuring a more equitable representation in the federal legislature. This aspect is crucial for ensuring Sabah's voice is adequately represented at the federal level, and it demonstrates a comprehensive approach by the Sabah Government.
Complementing this political strategy is the Sabah Law Society's (SLS) ongoing legal action. According to their statement, published on Facebook on May 21, 2025, the SLS is pursuing a landmark constitutional hearing before the High Court of Sabah and Sarawak at Kota Kinabalu. The SLS's case, now before the courts, directly challenges the federal government's actions regarding Sabah's revenue rights. Their core arguments center on the alleged breach of constitutional duty regarding the non-payment of the 40% entitlement during the years since the last review. The case continues to address the constitutional basis for Sabah's claim, citing Articles 112C and 112D of the Federal Constitution, and Part IV of the Tenth Schedule. The SLS statement emphasizes that this is not a political matter but a constitutional obligation, grounded in Article 112C and the Tenth Schedule of the Federal Constitution.
Sabah's strategic duality, simultaneous pursuit of political negotiation and a robust legal challenge, positions the state for a truly transformative outcome. The inclusion of the 40% claim on the MA63 Technical Committee's agenda signals a commitment to finding a resolution, while the ongoing legal action ensures accountability. Success will not only secure significant financial redress for Sabah but also fundamentally reshape the power dynamics within the Malaysian Federation, solidifying Sabah's autonomy and setting a powerful precedent for future intergovernmental relations.
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