Govt won’t appeal High Court ruling on Sabah’s 40pc revenue entitlement

KUALA LUMPUR – The federal government has decided not to appeal the Kota Kinabalu High Court’s decision affirming Sabah’s constitutional right to 40 per cent of federal revenue collected from the state.

In a statement, the Attorney General’s Chambers (AGC) said the government respects the constitutional basis of the Special Grant provision and will begin urgent negotiations with the Sabah government to implement it.

Revenue entitlement

However, the AGC noted that it will appeal parts of the written judgment containing “defects” and “inaccurate claims,” particularly statements suggesting that both federal and Sabah governments had “abused their powers” and breached duties since 1974.

The decision followed a special Cabinet meeting held to discuss the ruling, which stemmed from the Sabah Law Society’s successful judicial review compelling Putrajaya to honour the 40 per cent revenue entitlement under the Federal Constitution.

Business News