Court of Appeal to decide on Federal Govt stay application in Sabah 40% revenue case


KOTA KINABALU: The Court of Appeal will deliver its decision on April 6 regarding the Federal Government’s application for a stay of execution of the Kota Kinabalu High Court’s decision concerning Sabah’s 40% return of revenue rights.

Sabah Law Society president Datuk Mohamed Nazim Maduarin said the date was fixed after the Court of Appeal concluded hearing the Federal Government’s application for a stay of execution regarding the Sabah 40% matter.

“The panel has fixed April 6, 2026, for the delivery of its decision. This application concerns whether the High Court order, including the time frame set by the court, remains in force pending the disposal of the appeal.

“Sabah Law Society will review the Court of Appeal’s decision once delivered,” he said in a brief statement.

In October 2025, the Kota Kinabalu High Court ruled that Sabah is constitutionally entitled to 40% of net federal revenue collected from the state, a landmark decision that reaffirmed the state’s rights under the Malaysia Agreement 1963 (MA63).

Justice Celestina Stuel Galid upheld Sabah’s constitutional right to 40% revenue, ordering both the federal and state governments to carry out the financial reviews - a full review of Sabah’s revenue entitlement from 1974 to 2021 to be completed within 90 days.

The two governments were to negotiate and reach an agreed settlement on the entitlement within 180 days.

The case was brought by the Sabah Law Society (SLS) through a judicial review, challenging decades of federal non-compliance.

 

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