KOTA KINABALU: Usno president Tan Sri Pandikar Amin Mulia the Federal Government’s RM1.5bil 2026 interim payment to Sabah, which was announced on May 30, as fair under Article 112D.
On Monday (June 1), Pandikar said the decision aligned with Article 112D(2), which requires considering the Federal Government’s financial position and the State’s needs.
He said court proceedings could not conclusively determine the payment amount or timing without breaching the separation of powers. He cited Article 112D(6), which bound governments to an independent assessor’s recommendation if they failed to agree.
Pandikar said the Constitution allowed wide negotiation space without a fixed settlement timeframe and tied any agreement to federal capacity. He said Sabah needed billions of ringgit to match Sarawak’s development, but federal needs and investor confidence also mattered.
He cited Paragraphs 9 and 10 of the Malaysia Solidarity Consultative Committee Memorandum supporting an effective Central Government and safeguards that did not weaken it. He said repeated 40% demands ignored these provisions and that Sarawak, without the 40% entitlement, developed faster through its own efforts.
