KUALA LUMPUR (Oct 17): Former Sabah chief minister Datuk Seri Salleh Said Keruak has welcomed the Kota Kinabalu High Court’s decision affirming Sabah’s constitutional right to 40% of federal revenue, describing it as a “significant moment” for the state.
In a statement released on Friday, Salleh congratulated the Sabah Law Society on its success in the case, calling the ruling a historic affirmation of Sabah’s rights under Articles 112C and 112D of the Federal Constitution.
Article 112C mandates that the federal government must provide special grants and assign specific revenues to Sabah and Sarawak, including Sabah's right to two-fifths (40%) of the excess net revenue derived by the federation from the state. Article 112D establishes the mechanism for the periodic review of these special grants between the federal government and the respective state government.
“This is more than a court ruling — it is a reminder that justice and fairness must always be the foundation of our nation,” Salleh said.
He stressed that the ruling reaffirms that Sabah’s rights are “not mere promises, but constitutional guarantees” that must be honoured through good faith, transparency, and collaboration between the federal and state governments.
He expressed hope that the decision would “pave the way for a new chapter of mutual respect and constructive dialogue” between Sabah and Putrajaya, guided by the "same spirit of unity that built the Federation of Malaysia."
Earlier on Friday, the High Court ruled that the federal government had acted unlawfully and beyond its constitutional powers by failing to honour Sabah’s 40% share of federal revenue for nearly five decades.
Judge Celestina Stuel Galid also declared that the special grant review orders jointly issued by the federal and state governments were “unlawful, ultra vires, and irrational,” breaching the Federal Constitution, Malaysiakini reported.
The judge further issued a mandamus order directing Putrajaya to conduct a new revenue review with the Sabah government and agree on the state’s 40% entitlement for each financial year from 1974 to 2021, with the review to begin within 90 days and conclude within 180 days.
Senior federal counsel Ahmad Hanir Hambaly @ Arwi, representing the federal government, told the court that Putrajaya would file a formal application for a stay, pending further instructions.
The ruling comes ahead of the Sabah state election set on Nov 29, at a time when the narrative is growing for a stronger political unity in East Malaysia, in pursuit of what has been described as a fairer sharing of national resources with the peninsula.
'Don’t appeal, honour the ruling,’ govt told
The United Progressive Kinabalu Organisation (UPKO), one of the four component parties of Pakatan Harapan, has urged the federal government not to appeal against the High Court decision and to respect the ruling.
The ruling sent a clear signal for the federal government to take its constitutional obligations towards Sabah seriously, UPKO secretary general Datuk Nelson W Angang said.
It could pave the way for policy reforms and a fairer economic relationship between Sabah and Putrajaya, Nelson said in a statement. “This is not about politics — it is about the future of our state."
Nelson also called on both the state and federal governments to engage in transparent and fair discussions anchored in the true spirit of the Malaysia Agreement 1963 (MA63).
“We urge the incoming Sabah government to take a more proactive role in upcoming negotiations to ensure that any outcome genuinely reflects the interests of the people of Sabah, rather than serving as a mere symbolic gesture,” he added.