14-07-2025
- Business
- Free Malaysia Today
Govt to decide on Sabah's 40% revenue entitlement on Sept 12, says Fadillah
Deputy prime minister Fadillah Yusof said the proposal, submitted by the Sabah government, is based on Articles 112C and 112D of the Federal Constitution. (Bernama pic)
PETALING JAYA : The federal government will decide on Sabah's proposal to reclaim a 40% net revenue entitlement at the Malaysia Agreement 1963 (MA63) meeting scheduled for Sept 12, says deputy prime minister Fadillah Yusof.
He said the proposal, submitted by the state government, is based on Articles 112C and 112D of the Federal Constitution and will be brought to the prime minister's attention at the meeting, Sabah Media reported.
Fadillah, who chaired a special MA63 technical committee meeting in Kota Kinabalu today, said the session was focussed on Sabah's constitutional revenue claims and possible interim solutions.
'We've heard the presentations and proposed solutions from the Sabah government. These proposals have also received feedback from the finance ministry and the Attorney-General's Chambers at the federal level,' he was quoted as saying.
Fadillah also acknowledged the ongoing challenge by the Sabah Law Society, which may have legal implications.
'Therefore, we must proceed cautiously, but our goal is to reach a mutually agreed solution outside of court,' he said.
Asked whether a final decision could be expected before Malaysia Day, he did not give any confirmation but reiterated that the federal-level meeting was already fixed for Sept 12.
The revenue sharing formula has been a contentious issue for decades. Sabah politicians have called for the federal government to honour the state's entitlement to 40% of the amount which exceeds the net revenue derived in 1963.
Use of the formula has been suspended since 1974, with the federal government paying increased special grants to Sabah and Sarawak.
