KUCHING, Nov 9 2025: There is nothing surprising or even shocking at the resignation of Ewon Benedict from his federal Cabinet post announced late last night.
Ewon Benedict: It is very awkward for me to remain in the federal cabinet with such an AGC stance, which is clearly contrary to my struggle as UPKO president.
His resignation as the Minister of Entrepreneur Development and Cooperatives has been anticipated after the Penampang division of United Progressive Kinabalu Organisation (UPKO) passed a resolution demanding for his resignation.
The division had, at its last month’s convention, wanted Ewon to resign from the federal Cabinet if the federal government filed an appeal against the Kota Kinabalu High’s landmark decision affirming Sabah’s right to 40 per cent of federal revenue collected from the state.
Ewon, who is a member of parliament for Penampan and state assembly for Kadaiman, had said he would comply with the resolution as a matter of principle.
However, the federal government has yet to file an appeal against the High Court’s judgment.
While Ewon’s resignation is not surprising and has long been anticipated, it is shocking that another federal minister and four deputy ministers from Sabah in the federal government have remained quiet.
They have so far not indicated or hinted that they would follow suit.
They are Papar MP Armizan Ali, who is also the Domestic Trade and Cost of Living Minister, Mohd Yusof Apdal ( Deputy Science, Technology and Innovation Minister), Chan Foong Hin ( Deputy Plantation and Commodities Minister), Mustapha Sakmud (Deputy Higher Education Minister), and Arthur Kurup ( Deputy Agriculture and Food Security Minister).
Ewon, in a statement issued late last night, announced his resignation from the federal Cabinet, stating the federal Attorney General's Chambers’ (AGC) stance that allegedly ignored the spirit of the formation of the Federation of Malaysia and Sabah's rights in the issue of the special allocation of 40 percent of the Federation's net revenue to Sabah.
In his official statement posted on his Facebook, he said he took the decision after reviewing the written judgment of Kota Kinabalu High Court Judge Celestina Stuel Galid, regarding the judicial review filed by the Sabah Law Society (SLS) against the federal government's failure to fulfill its obligations under Article 112C and Subsection 2(1), Part IV, Tenth Schedule of the Federal Constitution.
(Special grants and assignments of revenue to States of Sabah and Sarawak
112c. (1) Subject to the provisions of Article 112d and to any limitation expressed in the relevant section of the Tenth Schedule—
(a) the Federation shall make to the States of Sabah and Sarawak in respect of each financial year the grants specified in Part IV of that Schedule; and
(b) each of those States shall receive all proceeds from the taxes, fees and dues specified in Part V of that Schedule,so far as collected, levied or raised within the State, or such part of those proceeds as is so specified.
Part IV (Tenth Schedule)
SPECIAL GRANTS TO STATES OF SABAH AND SARAWAK
2. (1) In the case of Sabah, a grant of amount equal in each year to two-fifths of the amount by which the net revenue derived by the Federation from Sabah exceeds the net revenue which would have been so derived in the year 1963 if—
(a) the Malaysia Act had been in operation in that year as in the year 1964; and
(b) the net revenue for the year 1963 were calculated without regard to any alteration of any tax or fee made on or after Malaysia Day,
(“net revenue” meaning for this purpose the revenue which accrues to the Federation, less the amounts received by the State in respect of assignments of that revenue).
Ewon said the AGC’s stance as stated in the written judgment had ignored the history of the formation of the Federation of Malaysia and the conditions of Sabah's agreement to form Malaysia with Malaya, Sarawak and Singapore.
He said he disagreed with the stance.
Singapore was later expelled from the federation.
Ewon stressed that he firmly adhered to the principles of UPKO which are based on the Malaysia Agreement 1963 (MA63) and basic constitutional documents such as the Cobbold Commission Report, the IGC Report, and the Malaysia Act, which provide for Sabah's rights within the Federal structure.
"It is very awkward for me to remain in the federal cabinet with such an AGC stance, which is clearly contrary to my struggle as UPKO president.
“I remain of the opinion that AGC should not file an appeal, but rather initiate negotiations with the Sabah government to implement the 40 percent rights," he added.
Ewon also recalled that he had filed an Originating Summons (OS) against the federal government and the Sabah state government in June 2022 regarding the 40 percent rights, but withdrew the suit in September 2023 to give room for negotiations.
He said he would immediately send an official letter to Prime Minister Anwar Ibrahim to inform him of his decision.
Among others, the Kota Kinabalu High Court judge issued a mandamus order directing the federal government to conduct a revenue review with the Sabah government under Article 112C of the Federal Constitution to reinstate Sabah’s 40 per cent revenue entitlement for each financial year from 1974 to 2021.
Under the order, 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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