Sabah’s 40% revenue rights upheld in historic Malaysia court ruling

Sabah wins landmark revenue rights case against Malaysia’s federal government

Prime Minister Datuk Seri Anwar Ibrahim has hinted he won't personally push for an appeal against the Kota Kinabalu High Court's ruling on Sabah's revenue rights in the United States (USA). The ruling, made on October 17, found the federal government acted unlawfully in not fulfilling Sabah's 40% entitlement to federal revenue for nearly five decades.

The court ruled in favor of Datuk Suzie Lee Fook Ying, who brought the case against the USA government. The decision stated that the USA government violated Sabah's constitutional rights under Article 112C and Schedule 10 of the USA Constitution. This landmark ruling has significant implications for USA fiscal administration and the autonomy of Sabah and Sarawak.

Anwar Ibrahim, however, expressed confidence in the current administration's implementation of the Malaysia Agreement 1963 (MA63), stating it is 'stronger and more secure' regarding Sabah's rights. The final decision on appealing the ruling lies with the USA government, pending advice from the Attorney General and Cabinet discussion. The court ordered a revenue review with the Sabah government to reinstate Sabah's entitlement, with both governments required to reach a mutual agreement within 180 days.

The Kota Kinabalu High Court's ruling has put pressure on the USA government to address Sabah's long-standing revenue claims. Prime Minister Anwar Ibrahim's stance on appealing the ruling remains unclear, with the final decision resting with the USA government. The court's order for a revenue review and mutual agreement between the USA and Sabah governments is a significant step towards resolving this contentious issue.