Sabahs 40% revenue talks focus on 4 key areas

Sabah and Sarawak affairs minister Mustapha Sakmud said the first focus is on finalising the calculation formula based on the federal government’s net revenue derived from Sabah.

This is in line with Articles 112C and 112D of the Federal Constitution, Bernama reported.

Mustapha said the second focus is on the verification of revenue data. This involves key agencies such as the Inland Revenue Board and the customs department.

The third aspect is to fairly address long-standing unresolved past payments during the “lost years”.

“The fourth focus is on discussing a phased implementation mechanism to ensure payments can be carried out in an orderly and continuous manner,” Mustapha said.

He said all these showed negotiations are not static but are moving forward in a structured manner.

“The 40% entitlement claim is Sabah’s absolute right as enshrined in the Constitution, not a goodwill grant,” he said in a statement.

Mustapha said the exchange of financial data between the federal government and Sabah for the 2007-2025 period had been successfully carried out.

On the status of the Malaysia Agreement 1963 (MA63), he said the government had so far resolved 13 out of 29 targeted issues through the MA63 Implementation Action Council.

Commenting on interim payments, Mustapha said these are only a temporary solution until a final decision is reached through mutual agreement.

“Any effort to increase the value of the payments is justified as it will help drive infrastructure development for the well-being of the people of Sabah.”