Govt won’t appeal High Court ruling on Sabah’s 40pc revenue entitlement

Govt won’t appeal High Court ruling on Sabah’s 40pc revenue entitlement



The Attorney-General’s Chambers said that the decision followed a special Cabinet meeting convened earlier to discuss the Oct 17 ruling, which stemmed from the Sabah Law Society’s judicial review against the federal government. — Picture by Shafwan Zaidon

Tuesday, 11 Nov 2025 7:46 PM MYT


KUALA LUMPUR, Nov 11 — The federal government has decided not to appeal the Kota Kinabalu High Court’s decision affirming Sabah’s constitutional entitlement to 40 per cent of federal revenue collected from the state — but will challenge parts of the judgment it says contain “defects” and inaccurate claims.

In a statement today, the Attorney General’s Chambers (AGC) said the government respects the constitutional basis of the 40 per cent Special Grant provision and will begin negotiations with the Sabah government “urgently” to implement it.

However, the AGC said the written judgment included statements suggesting that both the federal and Sabah governments had “abused their powers and breached constitutional duties” dating back to 1974, and described the 2021 Special Grant review as “unlawful, irrational, procedurally flawed and disproportionate”.

“The federal government will be filing an appeal with respect to these defects in the written judgment,” the statement said.


The announcement follows a special Cabinet meeting this morning to discuss the ruling, which came after the Sabah Law Society (SLS) won its judicial review compelling Putrajaya to honour the 40 per cent revenue entitlement guaranteed under the Federal Constitution.

“The AGC informs that the federal government respects the principle of the Special Grant based on 40 per cent of revenue, as provided under the Federal Constitution. Therefore, the federal government has decided not to file an appeal against the ruling recognising the Special Grant based on 40 per cent of federal revenue derived from Sabah.”