KUALA LUMPUR: Oct 12, 2026 – The Federal Government has been urged to implement payment of the 40 per cent entitlement under Sabah’s revenue-sharing claim directly through state Inland Revenue Board (LHDN) and Royal Malaysian Customs Department (JKDM) collections as an initial settlement measure.
Penampang MP Datuk Ewon Benedick said the approach is seen as a “low-hanging fruit” or an easy-to-implement step, while negotiations on other revenue-sharing claims are still ongoing between both parties.
He said official data showed LHDN and JKDM revenue collection in Sabah in 2025 reached RM7.547 billion.
“If 40 per cent of this collection is calculated, the entitlement payment for Sabah is RM3.019 billion.
“Therefore, I propose the Federal Government double the interim amount this year from RM1.5 billion to RM3.019 billion to fulfil the entitlement payment,” he said when debating the 2027 Budget at policy stage in the Dewan Rakyat today.
Ewon stressed the State Government’s position that the increase in special payment from RM600 million to RM1.5 billion under Budget 2027 is not absolute, but only interim.
On petroleum royalty, he urged the National High Committee on the implementation of the Malaysia Agreement 1963 (MA63) to convene immediately to finalise outstanding issues, including the petroleum cash payment.
He revealed the existing 5 per cent cash payment was never discussed in the Sabah Cabinet when the Petroleum Development Act 1974 was signed.
As a start to the review, he proposed that the 5 per cent Petronas cash payment handed to the Federal Government be redirected to Sabah directly.
“I am of the view this is easier to implement because it only requires political will and sincerity of the Federal Government towards Sabah as a producing state,” he said, adding Putrajaya still receives special dividends from Petronas.
Ewon also demanded that stamp duty revenue sharing under the Sabah Land Ordinance be divided fairly at a 50:50 rate between the Federation and the state.
On the cancellation of the Rural Road (JLB) tender, he expressed deep concern as 40 of 65 projects in Sabah, estimated at RM5.144 billion, are involved.
He stressed any delay in basic infrastructure such as roads, water and electricity will delay the people’s well-being and the state’s economic momentum.
“I want to get the actual status of this matter. Has Sabah lost one year of implementation of new project list development?” he asked.
To prevent repeated project delay issues following the Auditor-General’s Report, he proposed Sabah’s development allocation be channelled in the first quarter of the current year.
He also proposed the establishment of a Special Committee to Monitor Budget Implementation comprising non-administration MPs from the relevant state.
On the RM1.077 billion allocation for preparations for the 16th General Election (GE16), Ewon proposed the Election Commission (EC) create a mechanism for voting without returning to one’s hometown.
This is to enable Sabahans working or studying in Peninsular Malaysia and Sarawak to vote at special polling centres in the Klang Valley, Penang or Johor, and vice versa for voters from other regions.
To resolve the shortage of doctors in Borneo, he urged a special policy be created so that the Faculty of Medicine at Universiti Malaysia Sabah (UMS) is fully dedicated to Sabah locals, with JPA sponsorship bonds to serve in their own state after graduation.
At the end of the debate themed “Sabah First Agenda”, Ewon also demanded the abolition of the Federal Village Development and Security Committee (JPKK) in Sabah to respect the existing state Rural Administration Enactment.
– TV Sabah
