KOTA KINABALU: A top Sabah lawyer has taken issue over Prime Minister Datuk Seri Anwar Ibrahim’s remarks that the RM16bil federal allocation to the region is bigger than the 40% constitutional entitlement being pursued by Sabah.
Datuk Roger Chin said while the announcement of an increased allocation may appear generous on the surface, the RM16bil does not adequately address the fundamental issue of Sabah’s 40% net revenue entitlement under the Malaysia Agreement 1963 (MA63).
“Instead, it seems to obfuscate the real financial needs and rights of the state, thereby insulting the intelligence of the people of Sabah,” said Chin, the immediate past president of the Sabah Law Society (SLS).
“The Prime Minister’s assertion that the RM16bil allocation exceeds the 40% net revenue entitlement is misleading and dismissive of the underlying issue.
“The allocation is not a substitute for the special grant; it is a separate financial arrangement with different implications,” Chin said in a statement yesterday.
“Conflating the two not only confuses the public but also detracts from the legitimate demand for financial justice and adherence to the MA63.”
When closing the Kaamatan festival on May 31, Anwar refuted claims that Putrajaya was not doing enough to resolve Sabah’s demands under MA63.
While the 40% net revenue demand has yet to be resolved, Anwar claimed that he has increased the federal allocation to Sabah since becoming PM.
“Since becoming PM, I have raised the allocation in 2024 to RM16bil compared to RM12.9bil in 2022,” he said, adding the RM16bil allocation given to Sabah was more than the 40% constitutional entitlement.
He said federal allocations and special grants were different, and that the RM16bil allocation was earmarked for specific operational expenditures within Sabah.
He said these funds were designated for various programmes and projects, with the unused balance rolled over to the next fiscal year, while the money does not directly go into the state’s coffers.
“In contrast, the 40% net revenue entitlement under MA63 is a special grant that should be directly transferred to the Sabah state government,” Chin said.
“This grant represents a share of the revenue generated within the state and is intended to be used at the state’s discretion.”
He also criticised Anwar’s call to end “parochial and narrow-minded sentiments” related to state rights.
“Dismissing these concerns as mere noise undermines the legitimacy of Sabah’s aspirations and the historical agreements that form the basis of Malaysia’s federation.
“The people of Sabah deserve transparency, respect for historical agreements, and genuine financial empowerment.
“Anything less is an affront to their intelligence and their rightful place within the Malaysian federation,” he said.
The Court of Appeal will deliver its ruling over an appeal by the Federal Attorney General’s Chambers to challenge the Kota Kinabalu High Court decision to grant leave to SLS for a judicial review in regards to Sabah’s constitutional 40% revenue entitlement on June 18.
