Sabah's special federal grants, 40% revenue rights are two separate issues, don't mix it up, says Shafie

KOTA KINABALU: The issue of federal special grants and the state's Constitutional right to the return of 40% of revenue are two separate issues, says Datuk Seri Mohd Shafie Apdal.

The Parti Warisan president said that the two matters - special grants and 40% revenue return - outlined under the Malaysian Constitution should not be mixed up as they were clearly separate issues.

He said Article 112C of the Constitution refers to the special grants for the states while Article 112D provides for the return of two-fifths (40%) revenue from Sabah to the state.

He said the mechanism is clearly stated under Schedule 7 of the Constitution.

"Special grants should not be confused," Shafie told reporters after chairing the party's supreme council meeting here Wednesday (May 22).

As such, he said Warisan fully supports the Sabah Law Society (SLS) legal action to seek judicial review on the state's revenue.

"This is important for Sabah and must be supported by all Sabahans. It is a matter of honouring the safeguards under the Constitution," he said.

He said the issue has been discussed for many years and included at high level special committees involving the Federal Government on the Malaysia Agreement 1963.

"I have also been involved in it when I was chief minister (2018-20) but we did not make much progress on this particular issue," he said, adding that there were still no agreements on the inter-continental shelf as well as oil royalty.

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