KUCHING, Oct 17 2025: The Sarawak government has been urged to take seriously the judgment of the Kota Kinabalu High Court which reaffirmed Sabah’s constitutional rights to 40 per cent of federal revenue as guaranteed under Articles 112C and 112D of the Federal Constitution.
Peter John Jaban: The success of Sabah Law Society shows what can happen when the people, not politicians, stand up for their rights.
Human rights activist Peter John Jaban said Sarawak’s leaders must have the courage to pursue similar legal or political action to reclaim what rightfully belongs to Sarawak under the Malaysia Agreement 1963 (MA63).
“Sabah has spoken through the court now it is Sarawak’s turn to act,” Peter said in a statement.
“The court’s decision exposes how Putrajaya has systematically failed to uphold its constitutional obligations towards Sabah and by extension, Sarawak.
“For nearly half a century, both states have contributed immense wealth to the nation while receiving only a fraction of their due returns.
“This imbalance must end,” Peter asserted.
He said the court’s judgment is not just a legal triumph, but it is also a moral victory for the people of Sabah who have waited five decades for the federal government to honour what is rightfully theirs. “The judgment is a clear reminder that MA63 is not a political slogan, but a binding constitutional document that must be respected in full.,” he added.
He congratulated the Sabah Law Society (SLS) for its historic victory in the Kinabalu High Court against the federal government.
‘The success of SLS shows what can happen when the people, not politicians, stand up for their rights.
He said the victory belongs to every Sabahan, and it should inspire every Sarawakian to demand justice, equity, and respect in this federation.
Peter said Sarawakians call upon the federal Attorney-General, the federal and Sabah governments to act in good faith and not to appeal the judgment.
He said it would be to further insult the people of Sabah, especially when the Sabah state election is just around the corner.
“Any attempt to delay or deny this ruling would only deepen distrust and fuel the growing call for self-determination in both Borneo states,” he said.
Earlier today, the Kota Kinabalu High Court ruled that the federal government acted unlawfully by failing to honour Sabah’s 40 per cent share of federal revenue for nearly five decades.
Malaysiakni quoted Judge Celestina Stuel Galid as declaring that the special grant arrangements made by both the federal and state governments “unlawful, ultra vires and irrational”.
She also said that the grant arrangement had also breached the Federal Constitution, saying that It is unlawful on the part of the federation to make the intended special grants under the 10th Schedule.
Celestina also ruled that the Second and Third Review Orders issued by the two governments were invalid and allowed the Sabah Law Society’s (SLS) application in full.
The SLS filed for a judicial review in 2022, claiming that the federal government had breached the Federal Constitution by failing to conduct a mandatory revenue review every five years since 1974.
It also argued that the government is constitutionally obliged to remit 40 per cent of federal revenue collected from Sabah back to the state for each of those years.
The revenue-sharing formula has been a contentious issue for decades. Sabah politicians have called for the federal government to honour the state’s entitlement, as agreed in 1963, to 40% of the net revenue derived from Sabah.
Use of the formula had been suspended since 1974, with the federal government paying increased special grants to Sabah and Sarawak instead.
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