(UPDATED) Sarawak, Sabah differ on issue of revenue sharing with the federal government. says former Sabah CM

KOTA KINABAKU, Feb 14 2026: Former Sabah Chief Minister Salleh Said Keruak reasoned that a proposal by Sarawak Premier Abang Johari Openg to calculate special grants based on a percentage of state revenue reflects a flexible and performance-based approach.

Caption: Salleh Said Keruak says that in Sabah's case, it is rights agreed upon Malaysia was formed 

He said for Sarawak, it can be discussed and negotiated as a policy formula between the state and the federal government.

“However, for Sabah, the issue of revenue sharing is not about introducing a new formula,” he said in his Facebook post.

He added it is already clearly stated in the Federal Constitution linked to the spirit of the Malaysia Agreement 1963 (MA63).

“This is not about asking for extra allocations or special treatment. It is about rights agreed upon when Malaysia was formed,” Salleh said.

 He said Sabah’s financial rights must be implemented according to the Constitution and the original agreement, not subject to changing political considerations.

 “If there are different interpretations or implementation issues, clear and transparent explanations should be given to the people of Sabah.

“Ultimately, it is up to Sabahans to assess and decide whether to accept those explanations,” he said.

He said Kota Kinanbalu High Court’s decisions on this matter have already been made and should be respected and fully implemented.

On Oct 17 last year, the court ruled the federal government had acted unlawfully by failing to fulfil Sabah’s right to 40 per cent of federal revenue derived from the state for nearly 50 years.

Judge Celestina Stuel Galid declared that the special grant arrangements between the federal and state governments were “unlawful, ultra vires, and irrational,” adding that they violated the federal constitution.

The court also ordered that an agreement be reached on Sabah’s 40 per cent share of federal revenue for each financial year from 1974 to 2021, with this process to be completed within 180 days.

Abang Johari had said yesterday that he had proposed that the federal government to consider basing financial allocations to Sarawak on the state’s actual revenue contributions.

He told reporters that he and Prime Minister  Anwar Ibrahim had discussed the proposal as part of efforts to review and improve the formula for special grants under the Federal Constitution.

He said the allocations returned to Sarawak should reflect the revenue the state contributes, including taxes, earnings from natural resources, and other economic activities.