Sabah to oppose Federal bid to stay High Court order on 40 pct revenue share

KOTA KINABALU (March 12): The Sabah State Attorney-General’s Chambers has confirmed that the state government will oppose an application by the Federal Attorney-General for a stay of the High Court order dated October 17, 2025, regarding Sabah’s entitlement to a 40 per cent share of net federal revenue collected from the state between 1974 and 2021.

In a statement today, Sabah Attorney-General Datuk Brenndon Keith Soh said the High Court order directed the federal government to engage with the state government to implement the 40 per cent special grant entitlement for the so-called “Lost Years” within a 180-day timeframe ending April 15.

“Since the delivery of the judgment, the state government has remained resolutely committed to comply with both the letter and the spirit of the High Court’s decision.

“The state has consistently participated in the engagement process with the relevant federal authorities and several meetings and technical discussions have been convened to facilitate the exchange of information, verification of data, and consideration of possible methodologies for determining the quantum of the 40 per cent special grant entitlement,” he said Soh.

Soh emphasised that Sabah has approached the discussions constructively and in good faith, proposing frameworks and solutions to facilitate a fair and mutually acceptable resolution within the court-mandated timeline.

He said Sabah has taken continuous steps to ensure the process proceeds in an orderly and productive manner, and remains ready and willing to engage with the federal government to achieve a resolution consistent with the constitutional provisions and the terms of the High Court order.

He also highlighted that Article 112D(6) of the Federal Constitution provides a constitutional safeguard in case an agreement cannot be reached.

An independent assessor would be appointed, whose recommendations are binding and must be implemented as if agreed upon by both governments.

He further explained that in light of ongoing discussions and the approaching deadline, the state government has urged both parties to focus on intensifying efforts to fulfil the terms of the High Court order and work collaboratively towards an equitable resolution.

Soh concluded that the State Attorney-General’s Chambers will continue to take all necessary legal steps to protect Sabah’s rights and interests, while supporting a process aligned with the rule of law, constitutional principles, and cooperative engagement between the federal and state governments.