TAWAU, Nov 10 2025: The federal Cabinet will hold a special meeting tomorrow whether to appeal or not against the judgment of the Kota Kinabalu High on the 40 per cent entitlement to Sabah, Prime Minister Anwar Ibrahim has said.
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Anwar Ibrahim: The federal government to hold discussions with the Sabah government after the election
He said that the federal government views the demand for the return of the 40 per cent to Sabah seriously.
"It will be presented for clarification and the Attorney General's views at the meeting tomorrow, before any decision is finalised.," he said at the opening a block of the Tawau General Hospital.
He said the federal government remains committed to the stance that every decision must be based on justice, transparency and the spirit of the federation for the benefit of the people of Sabah and the well-being of Malaysia as a whole.
He expressed the federal government's wish to hold discussions on the 40 per cent entitlement with the Sabah state government after the state election,
He said the discussions could not be held now because Sabah is under a caretaker government following the dissolution of the State Legislative Assembly (SLA).
“Hopefully, we can have discussions after the new state government has been formed after the state election is over,” the prime minister said.
Anwar, who is also the Finance Minister, also repeated his early statement that the federal government has allocated about RM17 billion to Sabah while collecting about RM10 billion from the state.
He also explained that the federal government’s allocation of RM600 million this year under the special grants is an interim payment because discussions are still on-going on a formula for a permanent payment.
Speaking to reporters later, the prime minister said the federal Cabinet will hear the views and opinions of the federal Attorney-General whether or not to appeal against the judgment of the kota Kinabalu High Court on the 40 per cent entitlement.
He said the country is based on the rule of law “so we need to hear the views and opinions of the AGC. Only then the Cabinet will make a decision.”
“In any case, the Cabinet will hold a meeting tomorrow to decide whether or not to appeal against the High Court’s judgment,” he said.
Meanwhile, in a statement posted on his facebook, he said for the first time since 1974, the present federal government is not delaying or waiting for the courts or political threats.
“In fact, we want to implement it because we have a clear political commitment to bring justice to Sabah,” he said.
He said the present government has channeled interim payments of RM300 million in 2023, RM400 million in 2024 and RM600 million in 2025.
“Sabah collects RM10 billion a year but we return more than RM17 billion. This is what we call the implementation of political determination.
“Therefore, for me, we must stop the culture of trading Sabah's rights for too long and question those who have been greedy and oblivious to Sabah's rights all this time,” he said.
On October 17, the court issued a mandamus order directing the federal government to conduct a revenue review with the Sabah government under Article 112D of the Federal Constitution to reinstate Sabah’s 40 per cent revenue entitlement for each financial year from 1974 to 2021.
The review must be conducted within 90 days, with both governments required to reach a mutual agreement within 180 days from the date of the order.
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