Kota Kinabalu, Malaysia – A motion has been filed in the Sabah Legislative Assembly calling for the full implementation of a High Court ruling from October 17, 2025, concerning Sabah’s constitutional entitlement to 40% of revenue collected by the federal government. Independent nominated assemblyman Datuk Roger Chin submitted the motion, asserting the need to openly debate and affirm Sabah’s constitutional rights.
The dispute over Sabah’s revenue share has been a long-standing issue, rooted in interpretations of the Malaysian Federal Constitution and historical agreements. The October 2025 High Court decision, which affirmed Sabah’s right to the 40% entitlement, was seen as a significant victory for the state. However, the federal government subsequently filed an appeal and a stay of execution, prompting concerns about potential delays in fulfilling the court order. This motion seeks to address those concerns directly.
Background to the 40% Revenue Entitlement
The 40% special grant to Sabah is enshrined in Article 112(1) of the Federal Constitution. This provision stipulates that the federal government shall pay to the Sabah government a sum equal to 40% of the net revenue derived by the federal government from Sabah. The formula for calculating this revenue has been a point of contention for decades. The Sabah Law Society initiated the legal challenge that culminated in the October 17, 2025, High Court ruling, arguing that the calculation should be based on the gross revenue collected within the state, as originally intended by the constitutional framework. The 17th Sabah State Legislative Assembly is currently considering this matter.
Chin’s Motion: A Call for Action
Datuk Roger Chin’s motion, as announced on his Facebook account on March 16, 2026, urges several key actions. Firstly, it calls on the federal government, led by Prime Minister Datuk Seri Anwar Ibrahim, to withdraw its appeal and stay bid related to the High Court ruling. Secondly, it demands full compliance with the court order within the stipulated timelines. Crucially, the motion seeks recognition of the 40% special grant as a constitutional right for Sabah, not merely a discretionary payment from the federal government.
The motion as well expresses support for the enforcement steps undertaken by the Sabah Law Society in pursuing the legal challenge. It further calls upon the Sabah government to actively defend the state’s rights throughout the review process. Chin believes that an open debate within the Assembly is essential to ensure transparency and accountability in addressing this critical issue. He stated, “I believe the Assembly should debate this matter openly and affirm Sabah’s constitutional rights.”
Federal Government Response and Ongoing Negotiations
Prime Minister Anwar Ibrahim has publicly stated the federal government’s commitment to honoring the 40% revenue share for Sabah. Speaking on March 15, 2026, he clarified that the federal government is not challenging the entitlement itself but is seeking clarification on specific aspects of the court order. This statement aims to alleviate concerns that the federal government intends to undermine the High Court’s decision. However, the appeal and stay of execution remain in place, pending further legal proceedings.
The exact nature of the “clarification” sought by the federal government remains unclear. Observers suggest that the government may be seeking to negotiate a more gradual implementation of the 40% revenue share or to define the scope of the revenue calculation in a manner that is fiscally sustainable for the federal government. The Sabah government, under Chief Minister Hajiji Noor, has consistently maintained its position that the 40% entitlement should be calculated based on gross revenue, as stipulated in the Federal Constitution. Hajiji Noor is currently leading the Second Hajiji cabinet.
Implications for Sabah and Malaysia
The full implementation of the 40% revenue share would have significant implications for Sabah’s economy, and development. Increased revenue would allow the state government to invest in crucial infrastructure projects, improve public services, and address socio-economic disparities. It could also empower Sabah to pursue its own development agenda and reduce its reliance on federal funding.
However, the issue also has broader implications for the federal-state relationship in Malaysia. The dispute over Sabah’s revenue entitlement highlights the ongoing tensions between the federal government and states with significant natural resources. A fair and equitable resolution to this issue is crucial for fostering greater trust and cooperation between the federal government and the states, and for ensuring a more balanced and sustainable development model for the country.
The Role of the Sabah Law Society
The Sabah Law Society played a pivotal role in bringing the matter to court and securing the October 2025 High Court ruling. The society’s legal challenge was based on the argument that the federal government had consistently underpaid Sabah its rightful share of revenue, violating the state’s constitutional rights. Chin’s motion explicitly supports the enforcement steps taken by the Sabah Law Society, recognizing their contribution to advancing Sabah’s interests.
The Current Composition of the Sabah Legislative Assembly
The 17th Sabah State Legislative Assembly, which began its term on December 11, 2025, comprises 79 members. This includes 73 elected members and 6 nominated members. The current Speaker is Kadzim M Yahya, and the Chief Minister is Hajiji Noor. The Assembly is currently controlled by the Gabungan Rakyat Sabah (GRS) coalition. The assembly meets at the Sabah State Legislative Assembly Building.
What Happens Next?
The Sabah Legislative Assembly is expected to debate Datuk Roger Chin’s motion in the coming weeks. The outcome of the debate and the subsequent vote will be a key indicator of the Assembly’s commitment to upholding Sabah’s constitutional rights. The federal government’s response to the motion will also be closely watched. The next significant development will likely be a hearing date set for the appeal filed by the federal government, although no date has been publicly announced as of March 17, 2026.
Here’s a developing story, and World Today Journal will continue to provide updates as the situation unfolds. We encourage readers to share their thoughts and perspectives in the comments section below.