Federal and Sabah governments begin special grant negotiations following High Court order to resolve 40% revenue entitlement under MA63
KOTA KINABALU: The federal and Sabah governments have expressed confidence that the Special Grant Negotiation Committee provides a strong platform to resolve Sabah’s 40% revenue claim.
In a joint statement, both governments confirmed the inaugural officer-level committee meeting was held today.
The meeting aims to review Sabah’s Special Grant value under Articles 112C and 112D of the Federal Constitution following an October 17 High Court order.
Representatives from both sides reaffirmed their commitment to progressive discussions based on cooperation, mutual respect and understanding.
Both parties agreed to share necessary financial data and information throughout the negotiation process.
“The discussions mark an effective and constructive start,” the statement said.
Both governments share an understanding that the grant review will follow the 40% federal net revenue formula.
The committee meeting was co-chaired by Sabah State Secretary Datuk Seri Safar Untong and Treasury secretary-general Datuk Johan Mahmood Merican.
Attendees included Sabah State Attorney-General Datuk Brenndon Keith Soh and National Budget director Datuk Seri Ab Rahim Ab Rahman.
Also present were Attorney-General’s Chambers Research Division head Marzaitul Azura Mokhtar and PM’s Department Sabah and Sarawak Affairs Division secretary Mohd Saiful Sungkih Abdullah.
The Kota Kinabalu High Court ruled on October 17 that the federal government acted unlawfully in failing to fulfil Sabah’s 40% entitlement.
The court ordered a review within 90 days and a mutual agreement within 180 days from the order date.
The agreement must address Sabah’s 40% special grant claim for the period between 1974 and 2021. – Bernama
