KOTA KINABALU: The duty to pay Sabah's 40% net revenue special grant is crucial as it will bridge the economic gap and ensure the well-being of people in the state, says Sabah Law Society (SLS) president Roger Chin.
He said that Sabah’s 40% entitlement which was due immediately after the formation of the Federation of Malaysia on September 16, 1963, is a fundamental right granted under the Malaysia Agreement 1963 (MA63).
Chin added that the entitlement was among the rights explicitly mentioned in the Report of the Inter-Governmental Committee dated February 27, 1963 highlighting the significance of Sabah's financial provisions for its development needs.
He said Sabah and Sarawak were acknowledged to be economically behind Malaya - now Peninsula Malaysia - at the time of Malaysia's formation.
“Thus, the duty to pay Sabah's 40% entitlement was crucial in bridging the economic gap and ensuring the progress and well-being of the people of Sabah,” said Chin.
He said Article 112C and section 2 of Part IV in the Tenth Schedule of the Federal Constitution clearly outlines the constitutional duty of the federal government to pay this entitlement to Sabah.
“But this duty is subject to review as prescribed under Article 112D. The first review should have taken place no later than 1969 and a second review no later than 1974,” he said.
Chin said that the federal and Sabah governments announced their agreement on the payment of annual grants for the period of 2022 to 2026 on April 14, 2022.
He added that negotiation on Sabah's 40% entitlement is still ongoing, and then said that the federal government published a Review Order that revoked the Sabah Special Grant (first review) Order 1970 on April 20, 2022.
Chin said that this significantly breaches the constitutional duty owed to the people of Sabah.
“SLS deems this action by the federal government a serious breach of its constitutional duty, which has had significant legal consequences,” he said.
Chin said the people of Sabah have suffered the consequences of this breach for a prolonged period from 1974 to 2021, amounting to 48 years of denied entitlement.
“These are what we refer to as The Lost Years, and it is the people of Sabah who bear the burden,” he said.
He said before initiating the 40% claim action, SLS engaged in extensive consultation sessions with political parties across the political divide, ensuring transparency and inclusivity in their approach.
“We are heartened to note the positive response from the state government, as Chief Minister Datuk Seri Hajiji Noor acknowledged SLS's application for a judicial review in respect of the 40% net revenue Special Grant that Sabah is entitled to under the Federal Constitution,” Chin said.
He said the state government recognised their initiative as a non-partisan, non-political pursuit aligned with the constitutional arrangements when Sabah joined Malaysia in 1963.
Chin added that it is crucial to emphasise that SLS’ action is initiated solely in the interest of the people of Sabah, regardless of political affiliations or party agendas.
He said the SLS remains committed to this cause and will continue to champion justice and the fulfilment of constitutional obligations.
Chin then added that the people of Sabah deserve their rightful entitlement, and SLS will pursue this and other matters through all legal means necessary to ensure that justice is served and that constitutional duties are upheld.
He said the SLS is an independent professional body of advocates dedicated to upholding justice and assisting the public in all matters relating to the law.
Chin then said that the SLS firmly upholds the cause of justice without regard to its own interests or those of its members, remaining uninfluenced by fear or favour, said Chin.
