After decades dismissed as Sabah’s “lost years”, the courts have now spoken — and the state has moved to demand the 40% revenue entitlement promised in 1963. Prime Minister Anwar Ibrahim and Sabah’s caretaker chief minister Hajiji Noor have opted for negotiations instead of political confrontation. But the key question remains: can their cooperation turn a constitutional guarantee into real, tangible development for Sabahans?
00:00The court also decided about the Sabah 40% of this.
00:07Except there are some things that think about the fact that the court will be challenged by the court.
00:18This law doesn't mean that the court in front of the Kerajaan in the Bawah Pimpinan Tun Razak since 1974,
00:28For nearly six decades, Sabah's 40% revenue entitlement has been a major point of contention between the state and federal governments.
00:48Now, a court ruling may have changed everything.
00:58So, what exactly does Sabah's 40% claim involve?
01:05In simple terms, 40% of all net federal revenue collected from Sabah is supposed to be returned to the state.
01:12This entitlement stems from the Malaysia Agreement 1963 and is written into Article 112C of the federal constitution, a fundamental condition Sabah set when Malaysia was formed.
01:24The last review was conducted in 1969 and gazetted in 1970, but a mandatory review scheduled for 1974 never took place.
01:35Following a judicial review by the Sabah Law Society, the Kota Kinabalu High Court on October 17th upheld the validity of the state's 40% revenue claim and ordered the federal government to begin the assessment process within 90 days.
01:50It also ordered both parties to conclude a new agreement within 180 days.
01:57Within days of the court ruling, the Sabah government, led by Chief Minister Haji J. Noor, was moving to recover what is due to the state.
02:06On November 7th, Gabungan Rakyat Sabah's Presidential Council declared the 40% entitlement a constitutional right that must be respected and urged Pucho Jaya not to appeal the High Court's ruling.
02:18On November 11th, the attorney general's chambers announced that Pucho Jaya would not appeal the 40% ruling and that the government intends to begin negotiations with Sabah immediately.
02:31However, the AGC said it would appeal part of the judgment which found that both the federal and Sabah governments had violated their constitutional obligations dating back to 1974.
02:44In the day one rakyat, Anwar defended the AGC's decision.
02:47Apakah kerajaan boleh berdiam bila dikatakan kita telah bertindak unconstitutional sejak 1974?
02:55Apakah boleh kita berdiam dan tidak membatalkan untuk expand rekod yang menyatakan illegal, irrational, procedurally improper or disproportionate?
03:08Ini belum pernah berlaku dalam keputusan mahkamah sebegitu keras dan melibatkan seluruh penubuhan kerajaan sejak dahulu.
03:16The Prime Minister stressed that while the government has no intention of challenging Sabah's 40% entitlement,
03:24inaccurate statements in the judgment must be corrected.
03:28Saya tidak mahu ini jadi politik dalam soal 40%.
03:32Kerana itu tidak dirayu.
03:34Tetapi kenyataan-kenyataan yang kita anggap tidak selaras dan tidak tepat harus dirayu.
03:41For his part, Hajiji has welcomed the move.
03:45Ini proses biasa undang-undang.
03:48Kita, to be fair, itu kerajaan persekutuan.
03:51Mana yang mereka fikirkan buat perayuan, maka mereka dibenarkan dalam undang-undang.
03:56He reiterated that the 40% entitlement is rooted in ME63 and tied directly to Sabah's development.
04:06Jadi hasil daripada pemberian 40% ini nanti, kita akan gunakan sepenuhnya untuk membangun kawasan luar bandar,
04:14juga membangun ekonomi Sabah, termasuklah pentingan-kepentingan yang lain.
04:19Anwar dan Hajiji are of the same view.
04:23If the 40% issue is to progress, Sabah-Pucu Jaya Relations must remain strong.
04:43Hajiji echoed the same message.
04:45Saya yakin rakyat Sabah akan mengingati beliau sebagai seorang Perdana Menteri yang prihatin kepada negeri Sabah.
04:53Kerana sebelum-sebelum ini, isu ini ditimbulkan, dia tidak ada lagi soal perbincangan ini.
05:00Disenyapkan begitu saja.
05:03Jangan kerana kita menuntut sesuatu, kita renggangkan, keruhkan hubungan kita dengan kerajaan persekutuan.
05:11Kita ambil hasil 10 bilion.
05:15Kita bagi balik 17 bilion ringgit.
05:19That statement by the Prime Minister has sparked debate.
05:24Because it makes it appear that Sabah is already receiving more than it contributes.
05:30But the 40% claim isn't about federal allocations.
05:34It's about Sabah's right to manage its own revenue.
05:38The 17 bilion ringgit is money controlled by Pucu Jaya,
05:41while the 40% is money Sabah wants to control itself.
05:46Sabah argues that it understands local needs best,
05:49and that the funds can be used more effectively when managed by the state itself.
05:55Negeri Sabah adalah satu negeri yang agak besar.
05:58Jadi, kalau kita pergi ke kawasan-kawasan pedalaman,
06:06keadaannya masih lagi.
06:08Jalan raya kampungnya masih tidak berturap,
06:12jambatan kampung belum lagi dibina,
06:15ada yang belum mendapat bekalan elektrik luar bandar.
06:18Jadi, hasil daripada ini kita akan bangunkan negeri Sabah ini
06:22untuk faedah rakyat kita.
06:28Federal revenue in 2024 was approximately RM261.9 bilion.
06:33Some RM16.6 bilion came from Sabah.
06:37If the 40% revenue formula is fully implemented,
06:41Sabah could receive several billion ringgit annually,
06:43compared to the roughly RM813 million it currently gets.
06:48The courts have clarified the law.
06:51Pooja Jaya has acknowledged Sabah's right.
06:55Sabah is ready to negotiate.
06:57Yet, the 40% entitlement will only materialize
07:01if both parties bring to the table what no court can compel.
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