Negotiations on Sabah’s 40% revenue claim are progressing, focusing on formula, data, past payments and implementation.
KOTA KINABALU: Negotiations between the federal government and the Sabah state government on the state’s 40 per cent revenue entitlement claim are actively progressing, focusing on four key aspects, said Datuk Mustapha Sakmud.
The Minister in the Prime Minister’s Department (Sabah and Sarawak) said the first focus is to finalise the calculation formula based on the federal government’s net revenue derived from Sabah, in line with Articles 112C and 112D of the Federal Constitution.
He said the second focus involves the alignment and verification of revenue data involving key agencies such as the Inland Revenue Board and the Royal Malaysian Customs Department, while the third aspect is to fairly address long-standing unresolved past payments, or “lost years”.
“The fourth focus is on discussing a phased implementation mechanism to ensure payments can be carried out in an orderly and continuous manner.
“All these efforts show that the negotiations are not static, but are moving forward in a structured and fact-based manner. The 40 per cent entitlement claim is Sabah’s absolute right as enshrined in the Constitution, not a goodwill grant,” he said in a statement here today.
Mustapha said the exchange of financial data between the federal government and Sabah for the period from 2007 to 2025 has also been successfully carried out, enabling both parties to have a clearer basis of understanding of the figures and calculation methods involved.
On the status of the Malaysia Agreement 1963 (MA63), he said the MADANI Government has so far resolved 13 out of 29 targeted matters, reflecting its continued commitment through the MA63 Implementation Action Council.
He added that to strengthen transparency, the ‘MA63 Implementation Status Dashboard’ has been activated for Phase 1 to monitor baseline progress, while Phase 2 is being developed to expand data integration across agencies and enable real-time access to information.
Commenting on interim payments, Mustapha stressed that they are only a temporary solution until a final decision is reached through mutual agreement.
“Any effort to increase the value of the payments is justified to drive infrastructure development for the well-being of the people of Sabah,” he said.
