Special grant talks provide strong platform to resolve Sabah’s 40% claim

Representatives of both the federal and Sabah governments reaffirmed their commitment to conduct discussions in a progressive manner and in the spirit of cooperation, mutual respect and understanding. (Wikipedia pic)
KOTA KINABALU: The federal and Sabah governments are confident that the meeting of the special grant negotiation committee today provides a strong platform for resolving Sabah’s claim to 40% of revenue from the state, as provided for under the Malaysia Agreement 1963 (MA63).
In a joint statement, the federal and Sabah governments said the inaugural meeting of the officer-level committee was held today.
According to the statement, the meeting was held to review the value of Sabah’s special grant in line with Articles 112C and 112D of the Federal Constitution following a High Court order on Oct 17.
The statement said representatives of both sides reaffirmed their commitment to conduct discussions in a progressive manner and in the spirit of cooperation, mutual respect and understanding, including sharing the necessary financial data and information.
“Both parties agreed that these discussions mark an effective and constructive start, with a shared understanding that the review of Sabah’s special grant will be based on the formula of 40% of the federal net revenue (in Sabah),” it said.
The committee meeting was co-chaired by Sabah state secretary Safar Untong and federal Treasury secretary-general Johan Mahmood Merican.
Those present included Sabah attorney-general Brenndon Keith Soh, national budget director Ab Rahim Ab Rahman, research division head at the Attorney-General’s Chambers Marzaitul Azura Mokhtar, and secretary of the Sabah and Sarawak affairs division at the Prime Minister’s Department Saiful Sungkih Abdullah.
On Oct 17, the Kota Kinabalu High Court ruled that the federal government had acted unlawfully and beyond its constitutional powers in failing to fulfil Sabah’s entitlement to 40% of the federal net revenue in the state for nearly five decades.
The court also ordered a review to be conducted within 90 days, while a mutual agreement between both governments must be reached within 180 days from the date of the order regarding Sabah’s 40% special grant claim for the 1974-2021 period.