Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed the government’s final and non-negotiable commitment to fulfilling Sabah’s 40% revenue entitlement under MA63.
KOTA KINABALU: Prime Minister Datuk Seri Anwar Ibrahim has declared the Federal Government’s commitment to Sabah’s 40% revenue entitlement as a final and non-negotiable policy decision.
Speaking at a state-level breaking-of-fast event, Anwar stated the government is not appealing the matter and is fully committed to honouring the claim as stipulated under the Malaysia Agreement 1963 (MA63).
He emphasised that the focus has now shifted from debate to implementation, with detailed discussions underway between federal and state officials to determine the best mechanism.
The Prime Minister noted that the commitment is evident through ongoing meetings between Treasury Secretary-General Datuk Johan Mahmood Merican and Sabah State Secretary Datuk Safar Untong.
He referenced a Kota Kinabalu High Court ruling from October last year which affirmed the Federal Government’s obligation to review and repay the 40% net revenue entitlement.
Anwar added that the government’s stance builds upon an interim agreement reached between the Federal and Sabah governments in late 2022 and 2023.
The event was also attended by Sabah Chief Minister Datuk Seri Hajiji Noor and several federal ministers.
In his address, Anwar also stressed the importance of developing basic facilities like stalls and food outlets for public wellbeing.
He highlighted that such amenities attract about 85% of customers but are often in dilapidated condition due to outdated planning.
The Prime Minister cited initiatives in Kuala Lumpur to refurbish or rebuild stalls as a model to ensure comfort for the majority of people.
He concluded that development planning must change to benefit the people and attract more tourists to the country.
