Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim today clarified that the Federal Government's appeal is limited to specific aspects of the High Court of Sabah's judgment on the special 40 per cent Sabah state revenue allocation, after identifying certain flaws in the decision. Anwar said that based on the Federal Government's understanding and advice from the Attorney General's Chambers, the written judgment contained certain parts that went beyond its legal scope.
According to BERNAMA News Agency, Anwar explained that the court's reasoning that the review of the special allocation after 2021 was unlawful and irrational and also linked alleged major errors to the Federal Government dating back to 1974. He stated that this ruling implies that all Federal Governments, state governments, and members of parliament involved since 1974 up to the current administration are deemed to have acted beyond their authority, illegally, irrationally, procedurally improper, and neglectful of their responsibilities to the state of Sabah.
Anwar emphasized the significance of this issue, urging all MPs to examine the written judgment thoroughly. He stressed that the appeal is not about the 40 per cent allocation itself, which is not being contested, but rather about statements in the judgment that are believed to be inconsistent or incorrect. He mentioned this during Minister's Question Time in the Dewan Rakyat, responding to a question from Datuk Mohd Shahar Abdullah (BN-Paya Besar) regarding the government's rationale.
The prime minister further explained that discussions between the Federal and Sabah governments to review the grant rate were held during the tenure of former Prime Minister Datuk Seri Ismail Sabri Yaakob, and the increase was not done unilaterally. The negotiations were legitimate and in accordance with Article 112D of the Federal Constitution. Anwar noted that with Sabah's agreement, the rate was raised in 2022 to RM125.6 million, and a special grant of RM600 million was accepted as an interim arrangement, pending finalization by both Sabah and Sarawak through the MA63 Implementation Action Council.
Anwar also clarified that his statements on federal revenue and expenditure for Sabah were never intended to dispute the state's 40 per cent entitlement. He highlighted that federal spending had actually benefited Sabah through various forms of development expenditure. He dismissed claims that the government had neglected Sabah's rights, calling such accusations unfounded.
He cited examples under MA63, such as the regulation of electricity supply, which was handed over to Sabah in January 2024, yet the Federal Government continued to provide RM1.2 billion for the state's electricity needs. Additional commitments include RM765 million for the Southern Link transmission project, the MADANI Solar Hybrid programme in Sabah, RM1 billion for clean water supply, and the Pan Borneo Highway. Anwar stated that these measures reflect the Federal Government's commitment to ongoing negotiations on the 40 per cent revenue while prioritizing Sabah's development needs.