Sabah’s 40% entitlement never a bargaining chip, says minister’s aide

Sabah’s entitlement to 40% of net federal revenue derived from the state has never been made a political bargaining chip by the federal government, says an aide to Sabah and Sarawak affairs minister Mustapha Sakmud.

Mustapha’s press secretary, Ahmad Farid Sainuri, said reports quoting the minister as urging Sabahans to “retain the Madani government” if they wanted the RM1.5 billion interim payment to continue had been taken out of context.

Farid said these reports created the impression that Sabah’s constitutional right was linked to political support for the Madani administration, which he insisted was not the case.

“What the minister intended to emphasise was the government’s commitment to addressing Sabah’s needs by increasing the interim payment to an unprecedented level.

“The increase in the interim payment reflects the close cooperation between the Sabah government and federal government in working towards solutions on matters concerning the rights and interests of the people of Sabah.

“Highlighting this administration’s record in no way portrays Sabah’s rights as conditional upon political support. Sabah’s rights remain firmly protected under the Federal Constitution, including matters relating to Sabah’s 40% special grant entitlement,” he said in a statement.

Farid added that the interim RM1.5 billion grant was never regarded as a substitute for the 40% share to which Sabah was entitled.

He said the formula and implementation mechanism for the entitlement were being finalised by the state and federal governments, and that Mustapha’s priority remained clear.

“All matters concerning the rights of Sabah and Sarawak under the Malaysia Agreement 1963 must be resolved effectively and in accordance with the constitution, without compromising national unity.”

In April, the Court of Appeal allowed Putrajaya’s application for a stay of execution on a High Court order regarding Sabah’s 40% revenue entitlement, pending the disposal of an appeal.

The federal government’s special grant to Sabah was kept at RM26.7 million annually between 1974 and 2021 and raised to RM125.6 million for 2022.

The Madani administration raised the amount to RM300 million in 2023 and doubled it to RM600 million for 2024 and 2025 before fixing it at RM1.5 billion for this year.