GRS confident Sabah will secure 40% revenue share under new federal commitments

KOTA KINABALU: Gabungan Rakyat Sabah is confident that Sabah will finally realise its 40% revenue entitlement under the Malaysia Agreement 1963, following formal commitments from the Federal Government, says GRS deputy secretary-general Datuk Armizan Mohd Ali.

He said the administration is guided by official parliamentary replies and Cabinet decisions, not political rhetoric.

“If you look at past parliamentary replies from previous federal administrations, the 40% entitlement was considered not in force. That was why no review was ever carried out,” he told the press before the launch of Gabungan Rakyat Sabah’s state election manifesto on Monday (Nov 17).

Under the current Unity Government, Armizan said, “The Prime Minister has stated in Parliament that Putrajaya will not appeal the Court’s decision. This means the 40% provision under Article 112C and Section 1(1)(e) becomes the basis for determining Sabah’s annual special grant.”

He noted that a dedicated federal-state negotiation platform has now been established, separate from the broader Malaysia Agreement 1963 implementation committee.

“Before this, the issue was discussed together with more than 20 other MA63 matters. Now, there is one dedicated platform focusing solely on the 40%,” he said, noting that the first officers-level meeting was also held on Monday.

Armizan said Gabungan Rakyat Sabah wants the platform to continue beyond settling the current computation, serving as the permanent mechanism for the mandatory five-year review cycle under the Federal Constitution.

“This is not just about resolving it this round. Every five years, there must be a review. The same dedicated mechanism should function for that,” he said.

He warned against oversimplifying the issue.

“Some parties fan sentiment by making it sound like you can just snap your fingers and the money appears. But this is a constitutional matter with decades-old consequences.

“We must be factual and avoid misleading the people.”

Armizan stressed that strengthening Sabah’s own fiscal capacity remains crucial.

“A stronger revenue base enables the state to negotiate from a position of confidence,” he said.

He concluded that Gabungan Rakyat Sabah is optimistic about a positive outcome.

“With the Federal Government’s commitment and a formal mechanism now in place, Sabah is better positioned than before to realise what is rightfully ours,” he said.