Federal government won't appeal Sabah's 40% revenue entitlement ruling

Malaysia will not contest a court ruling granting Sabah entitlement to 40 percent of federal revenues collected within the state, but plans to challenge portions of the written judgment describing government conduct as unconstitutional. The Attorney General's Chambers announced that negotiations with Sabah authorities will commence immediately to implement the Special Grant provision while appealing sections alleging power abuse and constitutional violations since 1974.

Federal officials took issue with judicial characterizations describing the 2021 grant review as unlawful and procedurally defective. The decision follows emergency cabinet discussions after the Kota Kinabalu High Court sided with the Sabah Law Society in compelling Putrajaya to honor constitutional revenue guarantees.