Federal-Sabah dialogue the best way forward to honour 40% entitlement, says deputy minister


KOTA KINABALU: Constructive dialogue is the best way forward for Sabah following the federal government's commitment to honour the state's right to 40% of net revenue under the Malaysia Agreement 1963 (MA63).

Deputy Agriculture and Food Industry Minister Datuk Chan Foong Hin said that the Deputy Prime Minister Datuk Seri Fadillah Yusof's disclosure on the formation of a special committee to discuss the mechanism for the entitlement was a significant step toward ensuring the claim is implemented in line with the spirit of MA63 was the right move.

The committee, co-chaired by Sabah State Secretary Datuk Seri Safar Untong and Treasury secretary-general Datuk Johan Mahmood Merican, will report directly to the MA63 Implementation Action Council Technical Committee, which Fadillah chairs.

These developments demonstrated the federal government's commitment to resolving long-standing MA63 matters and paved the way for transparent dialogue once a new Sabah government is formed, said Chan, who is also the Pakatan Harapan candidate for the Tanjung Aru seat.

He said a stable and collaborative relationship between the federal and state governments would directly benefit the people of Sabah by speeding up project delivery, strengthening fiscal planning, and ensuring resources reach communities more efficiently.

"Effectively, this collaborative approach lays the foundation for a higher standard of living and stronger livelihoods across Sabah. When both governments work in unity and uphold the spirit of MA63, we move closer to a future where development is equitable, opportunities are accessible, and the well-being of every Sabahan is prioritised," Chan added.

Chan said that the federal government's position was clear as stated in the Attorney General's Chambers' Notice of Appeal filed at the Kota Kinabalu High Court on Nov 14, which confirmed that Putrajaya was not disputing the 40% formula prescribed under the Federal Constitution.

He said the appeal clearly states that they were not appealing against the 40% formula prescribed under subsection 2(1) Part IV of the Tenth Schedule read together with Article 112C of the Federal Constitution and on the need to hold a review as prescribed under Article 112D.

 

 

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