Masidi: Federal govt has to give revenue details before state can ask for 40% back

KOTA KINABALU: Sabah can only give a formal letter of claim to the Federal government for the return of 40% revenue owed to the state once it gets figures in black and white, says state Finance Minister Datuk Seri Masidi Manjun.

He said that a technical committee under the Malaysia Agreement 1963 committee was formed specifically for getting the date and details on the amount of revenue the Federal government had obtained from Sabah over the years.

"This will give us a baseline for the calculation for the 40% for the state's claim from the federal government," he said in response to Upko president Datuk Ewon Benedick's call to the state government to submit a letter of demand to the federal government for the 40%.

Masidi explained that the interim payments (special grants) made by the federal government was because the state had already begun the process when they wrote in on June 10, 2022.

"The Federal government would not have granted the interim payment in lieu of the final settlement.

"That is the basis of the interim payment because we are still discussing the final figure," he told reporters after attending a dinner hosted by the state government for the visiting Selangor state government delegation.

Masidi said that Ewon's statement for a letter of demand was on the specific amount but it could only be obtained after all data and statistics from relevant federal agencies were obtained.

"It is hampering the negotiations and efforts because we have not gotten all the data that we require," he said.

Asked if they were looking at July this year as the deadline to gather all data, Masidi replied; "We assume July is the deadline."

On Ewon's statement on a suggested mechanism for the return of the revenue, Masidi said; "As far as I am concerned, it is not about the mechanism but when the payment will be done.

"We asked them to furnish us with the data and specifics so that we can calculate the amount that we are claiming."

He said that both the federal and the state were part of the government and felt that the July timeline could be met as the issue should be implemented and not prolonged.

Asked if the matter was not settled by July, Masidi said; "There are options which will be decided when the time comes."

Under the Malaysia Agreement 1963, the Federal government has to return to Sabah government 40% net revenue from the state. It is provided under the Malaysian Constitution.

No payments have been made since 1974.