'Turning point' for Sabah: Lawyers, politicians hail 40pct revenue ruling
Former Sabah Law Society (SLS) president Roger Chin has hailed the High Court judgment that the federal government had acted unlawfully in failing to honour Sabah’s 40 percent share of federal revenue derived from the state as a “turning point”.
He said the High Court had restored the state’s long-denied constitutional rights under the Malaysia Agreement 1963 (MA63).
Former Sabah Law Society (SLS) president Roger Chin has hailed the High Court judgment that the federal government had acted unlawfully in failing to honour Sabah’s 40 percent share of federal revenue derived from the state as a “turning point”.
He said the High Court had restored the state’s long-denied constitutional rights under the Malaysia Agreement 1963 (MA63).
“The High Court has upheld what we have long fought for, our constitutional right to 40 percent of federal revenue.
“This victory belongs to every Sabahan who never stopped believing that justice would come,” he said in Kota Kinabalu on Friday.
Chin described the ruling as a judgment of historic importance, affirming that Sabah’s 40 per cent special grant was “not a privilege to be negotiated, but a constitutional right owed since 1963.”
He said the decision corrected the state’s “lost years”, the decades when Sabah’s revenue entitlement was withheld.
“These were the lost years when promises made at the birth of Malaysia were forgotten. Today, the court has restored those promises and reaffirmed the rule of law,” he said.
Chin was SLS president when he filed the judicial review on the 40 percent revenue entitlement in mid-2022.
40pct could fund essential services
Chin added that the ruling had tangible meaning for ordinary Sabahans, saying the 40 percent entitlement was meant to fund schools, hospitals, roads, and essential infrastructure that could improve daily life.
He also acknowledged the state government’s role in clarifying Sabah’s constitutional position, including its work on historical revenue data from 1964 to 1968.
“The court’s decision confirms that the 1969 Order did not extinguish or alter the original formula.
“The constitutional mechanism guaranteeing Sabah’s 40 percent share has always remained intact,” he said.
Chin explained that the court had quashed parts of the 2022, 2023, and 2025 review orders that omitted Sabah’s entitlement from 1974 to 2021, while affirming that the 40 percent grant from 2022 onward remained valid.
He said the ruling required the federal and state governments to meet within 90 days and reach an agreement within 180 days to calculate the arrears owed from 1974 to 2021.
“The arrears have been recognised as a continuing debt to Sabah, and payment must follow, whether through direct settlement or constitutional damages,” he said.
Appealing decision would indicate insincerity
Chin said the SLS would resist any attempt to appeal or undermine the decision, though he hoped the federal government would respect and abide by the court’s findings.
“While it remains their right to appeal, doing so would betray sincerity, especially when successive governments have pledged to honour MA63 yet failed to resolve the 40 percent entitlement,” he said.
He stressed that the ruling was not a victory against Malaysia’s federation but a reaffirmation of its founding principles.
“It proves that Malaysia honours her founding promises, that no state stands beneath the Constitution, and that true unity is built not on neglect but on respect.
“Today, Sabah has been heard. Today, justice has been done. And today, history records that promises made in 1963 remain promises kept in 2025,” he said.
Sabah leaders hail landmark ruling
Political and legal figures across Sabah have hailed the High Court’s decision, calling it a historic milestone in Malaysia’s federal-state relations.
Parti Solidariti Tanah Airku (Star) president Jeffrey Kitingan said he was pleased with the outcome but noted that the next stage of implementation would require patience.
“I’m very happy with the results, but we have got to wait a little bit - 90 days for the first stage and longer for the rest,” he said after attending the ruling at the Kota Kinabalu High Court.
Sabah Progressive Party (SAPP) president Yong Teck Lee described the judgment as a “big day for Sabah.”
“A big gift for Sabah. Thanks to the lawyers and to the SLS,” he said.
State Attorney-General Brenndon Keith Soh, who represented the Sabah government in the proceedings, said the decision was thorough and significant.
“It is a well-reasoned and well-considered judgment of the High Court. We acknowledge the professionalism of all counsel who assisted the judge in reaching this decision. This is a landmark constitutional case for the State of Sabah,” he said.
Soh added that an official statement from the Sabah government would be issued in due course.
