KOTA KINABALU, April 6 — The Sabah government hopes its ongoing negotiations with the federal government over its 40 per cent revenue entitlement will continue despite today’s Court of Appeal decision to grant a stay of the October 17 High Court order, which had set a 180-day timeline for payment.
Sabah Chief Minister Datuk Seri Hajiji Noor said that although the state opposed the stay, it respected the court’s decision to grant it pending the federal government’s appeal, describing the move as “procedural” in nature.
“Notwithstanding the court proceedings, it is hoped that negotiations will proceed in good faith towards reaching an agreement with the federal government.
“It does not set aside the existing High Court Orders granted. Whilst the High Court Order to hold a review is for the Lost Years [1974 – 2021], it should not prevent a review for the current years given that the Federal Government does not dispute the 40 per cent formula and the need to hold a review,” he said.
Hajiji said the state would respect the court’s decision and acknowledged the ongoing legal process.
“The state government will continue to discuss the matter and seek a solution,” he said.
On October 17 last year, the Kota Kinabalu High Court ruled that the federal government had acted unlawfully by failing to honour Sabah’s right to 40 per cent of net federal revenue from 1974 to 2021.
The High Court ordered both governments to complete a review within 90 days and reach a final agreement within 180 days, following a judicial review brought by the Sabah Law Society.
However, the federal government filed an application for a stay of execution pending an appeal against the judgment.
Amid discontent, Hajiji said the federal government’s appeal against the October 2025 Kota Kinabalu High Court ruling did not dispute Sabah’s constitutional right to the 40 per cent share of net federal revenue.
He added that Prime Minister Datuk Seri Anwar Ibrahim had pledged to honour it.
Tentative dates for the hearing of the federal government’s appeal are between October 27 and 30, 2026, with an e-review fixed for April 13, 2026 to confirm the hearing dates.
Date: 6 April, 2026 4:00 pm
Source: Malay Mail
💬 Join the Conversation! 💬
We’ve disabled comments on our posts and pages to keep the discussions organized and lively! But don’t worry – the conversation isn’t over. Head over to our forum and share your thoughts, ideas, and feedback with the community! It’s the perfect place to connect, learn, and engage with others who care about the same things. We can’t wait to hear from you!