40% revenue share for Sabah final, says PM

Anwar Ibrahim says the federal government recognises the claim as final and not subject to appeal.

Anwar, who is also finance minister, said the federal government recognises the claim is final and not subject to appeal, but detailed discussions are necessary to ensure the matter can be resolved in the best way for the benefit of Sabah and its people.

“We (the federal government) are not appealing the 40% (Sabah revenue) case and that is final … As far as this government is concerned, we have given a categorical assurance. This is a firm commitment and a policy decision.

“I have declared in the Cabinet and in Parliament, no negotiations. We are committed to honour our commitment of 40% (of the state’s revenue) to the people of Sabah. Period,” he said.

Anwar said this when speaking at the Madani 2026 breaking-of-fast event at Universiti Malaysia Sabah here today.

Also present were Sabah chief minister Hajiji Noor, Sabah and Sarawak affairs minister Mustapha Sakmud, higher education minister Zambry Abd Kadir, as well as domestic trade and cost of living minister Armizan Mohd Ali.

Anwar said the government’s commitment to fulfilling the matter could be seen through meetings between Treasury secretary-general Johan Mahmood Merican, representing the federal government, and Sabah state secretary Safar Untong, representing the state government, to ensure clearer details on the implementation mechanism of the claim.

“Our commitment to MA63 is not disputed. If we look at the statements and the court’s own decision, there is already a commitment through an interim agreement between the federal government and the state, beginning at the end of 2022 and in 2023, and subsequently after we (the government) took over the country’s administration.

“So to me, that is no longer an issue. The question now is how it will be implemented,” he said.

On Oct 17 last year, the Kota Kinabalu High Court ruled that the federal government is obliged to review and repay Sabah’s 40% share of the net revenue.