PBS backs Sabah govt in opposing stay on 40 pct revenue ruling

KOTA KINABALU (March 14): The Sabah government’s decision to oppose the federal government’s attempt to stay the High Court ruling on the state’s 40 per cent revenue entitlement is necessary to safeguard the state’s interest.

Parti Bersatu Sabah (PBS) secretary-general Datuk Julita Majungki said the move reflects the state’s commitment to defending its constitutional rights over federal revenue collected from Sabah.

“The issue of Sabah’s revenue entitlement has long concerned the people of the state, and it is important that the process proceeds in accordance with the law and constitutional provisions,” she said in a statement.

She added that respecting the court’s decision and allowing the consultation process to proceed would pave the way for a fair resolution benefitting Sabahans.

“PBS fully supports the state government’s move to oppose the stay application and to continue defending the state’s rightful entitlement through proper legal and constitutional processes,” she said.

She stressed that the matter goes beyond legal arguments, touching on Sabah’s ability to strengthen its fiscal capacity and improve public services.

“What Sabah is seeking is not extraordinary. It is simply the implementation of what rightfully belongs to the state under the constitutional arrangement,” she said.

Julita also expressed hope for continued constructive engagement between the federal and state governments to reach a mutually acceptable outcome while safeguarding Sabah’s rights.

Sabah will oppose the federal government’s application to stay the High Court order issued on Oct 17, 2025, concerning the state’s entitlement to a 40 per cent share of net federal revenue collected from between 1974 and 2021, commonly referred to as the ‘Lost Years’.

According to state attorney-general Datuk Brenndon Keith Soh, the High Court had directed the federal and state governments to undertake consultations to implement the 40 per cent special grant within 180 days, ending April 15, 2026.

He said the Sabah government has been engaging with relevant federal authorities through meetings and technical discussions to facilitate information exchange and determine the quantum of the special grant, while maintaining its stance against any attempt to stay the court order.