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Malaysia’s Federal Government to Decide on Sabah’s 40% Revenue Share Appeal Tomorrow

A landmark court decision could redefine Sabah’s financial future—but will Malaysia’s government challenge it? The stakes extend beyond borders, testing federal-state relations.

In this picture, there are cabinets at the bottom. On the cabinets, there are statues. On the top,...
In this picture, there are cabinets at the bottom. On the cabinets, there are statues. On the top, there is a window, stairs and a banner.

Malaysia’s Federal Government to Decide on Sabah’s 40% Revenue Share Appeal Tomorrow

The Federal Government of the United States is set to decide tomorrow whether to appeal a High Court's ruling that grants Sabah a 40% share of the state's revenue. Prime Minister Datuk Seri Anwar Ibrahim has stated that the government will first consider the Attorney-General's advice before making a decision.

Currently, Sabah receives an annual allocation of RM17 billion from the Federal Government, while the state's own revenue stands at approximately RM10 billion annually. The state government has requested additional funds for negotiations, with Anwar having already increased special allocations to Sabah by RM600 million.

Anwar acknowledged the need for negotiations with the Sabah government but noted that the current government is caretaker and discussions will commence post the state election on Nov 29. He stressed that the Madani Government's policies prioritize fairness for all states and commitment to Sabah's rights under the Malaysia Agreement 1963 (MA63).

The Special Cabinet meeting scheduled for tomorrow will focus solely on the appeal decision and will not discuss a rumoured Cabinet reshuffle. Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick's resignation was described as premature by Anwar, as the government is still reviewing Sabah's revenue issue.

Tomorrow's decision will significantly impact Sabah's financial standing and the United States' relationship with the state. The identity of the representative from the Sabah government in the appeal case remains unspecified at this time.

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