Senior lawyer expresses doubt if Sabah can get the 40 per cent entitlement

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.

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

 

Hold off on your celebrations, Sabahans told on the federal government's decison not to appeal over the 40 per cent revenue ruling

KUCHING, Nov 11 2025: Professor Dr James Chin of Asian Studies at the University of Tasmania has told Sabahans to hold off on their celebrations over the announcement that the federal  government will not appeal against the 40 per cent revenue ruling by the Kota Kinbalu High Court.

Caption: Professor Dr James Chin says that Sabahans should take a closer look at the fine print in  the statement 

In a Facebook post, he said the Sabahans (and Sarawakians) should take a closer look at the fine print in that bureaucratic jargon in the statement issued by the federal Attorney-General Chambers (A-GC) this evening.

“It explicitly leaves room for an appeal challenging the grounds of the ruling; and we all know what happens if those grounds are deemed flawed,” Chin warned.

“This carefully worded statement is really just a lifeline to keep Malayan parties and their local allies from getting decimated in the 17^th Sabah state election,” he said.

“Without this statement, all Malaya parties will be kaput,” he said, adding that Sabahans have the hearts of gold, but that makes them the prime targets for deception “if we don't know how to decode these government communiqués.”

“Stay sharp,” he said, urging the netizens to viral his post.

In a statement, the  A-GC 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 AG 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

 

Federal govt will not appeal against the ruling on the 40 per ent entitlement of revenue to Sabah

KUALA LUMPUR, Nov 11 2025: 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, a statement issued by the federal Attorney-General Chambers (A-GC) has said.

Kota Kinabalu High Court Complex

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 A-GC informed that the federal government respects the principle of the special grant based on 40 percent of revenue as provided for under the Federal Constitution,” the statement said.

“Therefore, the federal government has decided not to appeal the Special Grant based on 40 percent of revenue,” it said, adding in this regard, the federal government will immediately commence the negotiation process with the Sabah state government.

“At the same meeting, the AG 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

 

Petros inks three agreements with international partners to unlock onshore exploration potentials in Sarawak

KUCHING, Nov 11 2025: Petroleum Sarawak Berhad (Petros) today signed two strategic energy agreements and a storage study agreement with international industry players to unlock Sarawak’s onshore exploration potentials and to progress Carbon Capture, Utilisation and Storage (CCUS) projects in Central Luconia, Sarawak. 

(Left to right) For the document exchange of the Storage Study Agreement, representing Woodside Energy is CCS subsurface manager Robert Nesbit, CCS general manager Andrew Nicholls and Asia Pacific CCS strategy and business development manager Keith Adamson. Petros is represented by senior vice president for Sarawak resource management Datuk Abang Arabi Abang Narudin.

The agreements, witnessed by Petros chairman Tan Sri Hamid Bugo, were signed with Japan Organization for Metals and Energy Security (JOGMEC), SC Tubular Solutions Malaysia Sdn Bhd (SCTSM), Superconducting Sensor Technology Corporation (SUSTEC) and Woodside Energy.

In his speech,  Hamid said the signing of the agreements marks another milestone for Petros in driving Sarawak’s energy future.

“Through these collaborations, we are strengthening partnerships and embracing innovation to unlock new opportunities in exploration and low-carbon development,”  he said.

“Together with our global partners, we are shaping a reliable, equitable and inclusive energy ecosystem that supports Sarawak’s long-term growth and prosperity,” he added.

Under the joint study agreement (JSA), Petros an JOGMEC  will collaborate on the onshore exploration project in the Mukah-Balingian region.

The partnership will enable both parties to gain deeper knowledge into Sarawak’s subsurface, supporting responsible and long-term onshore oil and gas development.

Importantly, this collaboration will develop local capabilities and empower Sarawak’s homegrown talent to take the lead in innovation and responsible exploration.

In parallel, Petros, together with SC Tubular Solutions Malaysia and SUSTEC will begin a Proof-of-Concept Study to detect oil and gas signals at the Adong Kechil West field near Miri.

For CCUS, Petros also signed a storage study agreement (SSA) with Woodside Energy, a global energy company with extensive experience in oil and gas, as well as experience in new energy products and low- carbon services.

This agreement, established under the Sarawak Bid Round 2024, covers Site 3A in Central Luconia, offshore Sarawak, and will see Woodside assess the technical and commercial feasibility of safely storing carbon offshore under ground.

This collaboration supports Petros’ vision to position Sarawak as a regional hub for CCUS and advance a low-carbon industrial transition.

Petros was represented by vice president for subsurface and development Jeremy Wong for the agreement with JOGMEC/SUSTEC, and senior vice president for Sarawak resource management Datuk Abang Arabi Abang Narudin for the agreement with Woodside Energy.

Representing JOGMEC was executive vice president of energy business unit Mori Hiroyuki; while SUSTEC was represented by president and co-chief executive officer Tsunehiro Hato; SC Tubular Solutions Malaysia Sdn Bhd by president Yosuke Yamashita; and Woodside by general manager, carbon capture and storage Andrew Nicholls.

Collectively, the three partnerships will strengthen Sarawak’s energy capabilities, accelerate innovation in exploration and low-carbon technologies, create new opportunities for local talent and businesses, and support the state’s vision to become a regional hub for efficient energy development.

 

(Left to right) For the document exchange of the Storage Study Agreement, representing Woodside Energy is CCS subsurface manager Robert Nesbit, CCS general manager Andrew Nicholls and Asia Pacific CCS strategy and business development manager Keith Adamson. Petros is represented by senior vice president for Sarawak resource management Datuk Abang Arabi Abang Narudin.