KUCHING, Nov 11 2025: Senior lawyer Voon Lee Shan has expressed his doubts if the Sabah government can get the 40 per cent entitlement of the revenue derived from the state.
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Voon Lee Shan: The sums owed to Sabah could run into tens of trillions of ringgit
“If the federal government chooses not to appeal and not to pay, can Sabah government file for recovery of the sum owed?” he asked in a statement in response to the decision by the federal government not to appeal on the 40 per cent revenue ruling by the Kota Kinabalu High Court.
“Legal technicalities may arise. The suit was filed by the Sabah Law Society (SLS), not by Sabah govenment.
“The federal government may argue only SLS can go for recovery of sums owed but can SLS get it?
“I doubt because likely the court will not allow it,” Voon, who is also Parti Bumi Kenyalang (PBK) president, said tonight.
He said that the argument will be that SLS is not the government but “you can only get the declaration or judgment by the court that Sabah is entitled to the 40 per cent under the Federal Constitution. That's all.”
He also expressed his doubtful that SLS can enforce the judgment by writs of seizure and sale.
“It is doubtful the court will allow you to seize and sell assets that belong to the government to satisfy the sums owed to Sabah,” he said, adding:”To do so will paralyse the functions of the government.”
He said the government can collapse because once assets like government buildings in Putrajaya are being seized for sale under court order to satisfy the judgment sum, how and where government servants have to work.
“The sums owed to Sabah could run into tens of trillions of ringgit,” Voon said.
He reminded that the federal government is controlled by Malaya, may amend the Federal Constitution to deprive or reduce Sabah 40 per cent entitlement.
He said the federal government may seek to negotiate and tell the Sabah govenment not to pursue or support SLS in this claim,” Voon said.
He said although the federal government has until Nov 15 to file an appeal against the Kota Kinabalu High’s judgment, it is likely that the federal government will not appeal now because of the impact it would cause to the Sabah and federal governments in the state election.
He said there is nothing to prevent the federal government to choose to get leave to appeal after election is over.
“Given the fact that this is an important case that concerns the life or survival of the federation, leave for extension of time will likely be granted by the court to allow the federal government or Attorney General Chambers (AGC) to appeal after the Sabah election is over,” he suggested.
In a statement earlier tonight, the AGC said the federal government will not appeal against the decision of the Kota Kinabalu High over the 40 per cent entitlement of the revenue derived from Sabah.
However, the federal government will appeal the defects in the reasons for judgment.
A special cabinet meeting this afternoon discussed the court’s judgment regarding the Sabah state special grant decided in the Judicial Review Application filed by the Sabah Law Society against the Malaysian government.
The AGC said that while the federal government respects the principle of the special grant based on 40 percent of revenue as provided for under the Federal Constitution, he provided advice and views to the Cabinet regarding the defects in the reasons for judgment.
“Among them are the allegations that the federal government and the Sabah state government have abused their power and violated their constitutional obligations.
“This claim will involve the federal government and the Sabah state government since 1974.
“In addition, the reasons for judgment also stated that the review after 2021 is unlawful, irrational, procedurally irregular and disproportionate.
“The federal government will appeal the defects in the reasons for judgment,” the statement said.
On Oct 17, the High Court ordered the federal and Sabah governments to review the 40 per cent special grant entitlement for 1974-2021, giving them 90 days to complete the review and 180
days to reach a final agreement.
The judge made the ruling after allowing the Sabah Law Society’s (SLS) application for a judicial review, which contended that both the federal and Sabah governments had breached their constitutional duties by failing to legally review the payments.
The case centred on the interpretation of Articles 112C and 112D of the Federal Constitution. Article 112C deals with special grants and the assignment of revenue to Sabah and Sarawak, while Article 112D provides for periodic reviews of these grants
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