KUALA LUMPUR (March 12): Sabah will oppose the federal government’s bid to pause a court ordered review of Sabah's 40% special grant entitlement, according to its attorney general's chambers.

The Kota Kinabalu High Court had in October 2025 ordered the federal government to review and determine the quantum of the grant with the state government and reach an agreement within 180 days, or April 15, 2026, after finding that there had not been a review since 1974.

Judge Datuk Celestina Stuel Galid ruled that Putrajaya’s issuance of a special grant to the Sabah government from 2022 to 2025, and its method of deriving the sum to be granted, to be unlawful.

However, the federal government is applying for a stay of the review while it appeals legal and constitutional comments made in Galid’s decision. The federal government is not disputing the 40% payment, but is appealing the legal and constitutional comments made, claiming errors in law and fact.

The stay application is scheduled for hearing via video on March 31, 2026.

“It is… the state government’s considered position that there has been no delay or lack of cooperation on the part of the state in the implementation of the High Court order,” Sabah state attorney general Datuk Brenndon Keith Soh said in a statement on Thursday.

“The state government, therefore, remains ready, willing and able to continue to engage with the federal government in a constructive manner with a view to reaching a mutually agreed outcome consistent with the constitutional provisions governing the special grant and the terms of the High Court’s order,” he added.

Soh said if both sides cannot reach an agreement, the Federal Constitution under Article 112D (6) provides a solution — an independent assessor will be appointed, and their recommendations will be binding on both governments as if they had agreed to them.

“The constitutional safeguard ensures that the review process contemplated under the Federal Constitution can be concluded in an orderly manner even in the absence of a mutually agreed settlement,” he added.

Given discussions are ongoing and the approaching deadline, Soh said the Sabah state government is of the view that both parties should intensify efforts to reach an equitable resolution within the set timeframe.

“The state attorney general’s chambers will always take the necessary legal steps to safeguard the rights and interests of the state, while supporting a process that is consistent with the rule of law, constitutional principles and cooperative engagement between the federal and state governments,” he added.