Sabah revenue rights dispute enters court proceedings

Legal and political disputes have intensified regarding Sabah's constitutional right to 40 percent of net federal revenue derived from the state. At a Kota Kinabalu High Court proceeding, the Sabah Law Society (SLS) challenged the Federal Government's position that revenue reviews only apply from 2022 onwards.

Lawyer David Fung Yin Kee stated that the Federal Government's interpretation excludes the 48-year period between 1974 and 2021. SLS argues that revenue collected from Sabah and placed into the Federal Consolidated Fund during these “lost years” must be accounted for, as the state is entitled to its constitutional share.

Separately, Semporna MP Shafie Apdal emphasized that the 40 percent revenue share is a non-negotiable constitutional right under the Tenth Schedule of the Federal Constitution. He distinguished this entitlement from special grants, which he noted are subject to negotiation and may not meet the state's needs.