by David E.
KOTA KINABALU: Aug 28, 2026 — Datuk Seri Panglima Dr Jeffrey G. Kitingan today urged Prime Minister Datuk Seri Anwar Ibrahim to immediately implement Sabah’s 40 per cent revenue entitlement under the Malaysia Agreement 1963 (MA63) and the Federal Constitution, warning that failure to act could trigger a “referendum‑like reaction” in the upcoming general election.
The Sabah STAR president and Tambunan assemblyman stressed that the 40 per cent entitlement is not a matter of federal discretion but a constitutional right enshrined under Articles 112C and 112D of the Federal Constitution and affirmed by the Kota Kinabalu High Court ruling on Oct 17, 2025.
“The Prime Minister must act in accordance with his words and take this golden opportunity to implement Sabah’s rights in full,” Kitingan said, referring to Anwar’s earlier declaration that “the 40 per cent is settled. Case closed”.
Kitingan rejected any suggestion that the federal government’s financial position should delay payment, emphasising that the revenue in question belongs to Sabah.
“This is not about the federal government’s financial position. The money is not ‘federal money’ — it is our portion,” he asserted. “Sabah urgently needs this revenue to resolve the outstanding and current problems plaguing the state — water shortages, electricity failures, poverty, underdevelopment, and more.”
Kitingan reiterated that the RM1.5 billion interim special grant announced by the Prime Minister during the Kaamatan celebration falls far short of Sabah’s actual entitlement. He noted that Sabah’s 2026 entitlement alone should amount to no less than RM5 billion.
“I urge the federal government to stop paying the interim and start paying the full 40 per cent immediately from 2024 onward,” Kitingan said.
He further called for the establishment of a MA63 Revenue Tracking System (MARTS) in Sabah to enable real‑time monitoring and classification of federal revenue derived from the state. “We need a system to track and classify revenue collected from Sabah in real time so that distribution can be done annually,” he said.
Kitingan made clear that fulfilling Sabah’s constitutional rights would not only benefit the Madani government but could also strengthen political support from the Borneo bloc.
“Implementing the 40 per cent will benefit the Madani government and may even strengthen Borneo bloc political support,” he said.
However, he issued a stark warning: “PMX’s failure to act may trigger a referendum‑like reaction during the soon‑to‑be‑held general election.”
Kitingan noted that Sabah contributes up to RM50 billion annually to the federal government, with the 40 per cent share potentially reaching RM20 billion a year. Yet federal allocations remain small compared to Sabah’s entitlement.
Kitingan cautioned against conflating subsidies with constitutional rights, stressing that subsidies are assistance while rights are rights. He also questioned the ambiguity surrounding the federal government’s appeal of the High Court ruling, calling on the Prime Minister to clarify whether he authorised the appeal and, if not, to instruct the Attorney General to withdraw it.
“The 40 per cent revenue is Sabah’s permanent right as long as Malaysia exists,” Kitingan affirmed.
