Hajiji confident federal govt will honour Sabah’s 40 pct grant entitlement

KOTA KINABALU (Feb 15): Sabah Chief Minister Datuk Seri Panglima Hajiji Noor has expressed confidence that the federal government will eventually make payment on Sabah’s long-standing claim for its 40 per cent special grant entitlement, as provided under the Malaysia Agreement 1963 (MA63).

He said the matter had already been decided by the courts, and stressed that the federal government was obliged to comply with the ruling and honour the payment to Sabah in accordance with what is stipulated under MA63.

“I believe we will receive it, although the exact amount has yet to be determined. But this has already been decided by the court,” he told reporters after launching the Kitchen Garden Roadshow at Padang Istiadat here, on Sunday

He noted that discussions at the officials’ level were still ongoing, with several meetings having been held recently to address the issue.

Despite the lack of clarity on the quantum of the payment, Hajiji said he remained optimistic that the process would lead to a positive outcome for the state.

“I am confident that we will get results and that payment will eventually be made by the federal government,” he added.

On Oct 17, 2025, the Kota Kinabalu High Court ruled that the federal government had acted unlawfully by not fulfilling Sabah’s right to 40 per cent of federal revenue for nearly 50 years.

The court also ordered that an agreement be reached on Sabah’s 40 per cent share of federal revenue for each financial year from 1974 to 2021, with the process to be completed within 180 days.