SABAH is urging the Federal Government to begin paying the undisputed portions of its 40 per cent net revenue entitlement from 2022 onwards, separating them from the more complex claim for 1974 to 2021 that remains subject to legal proceedings.
Sabah Finance Minister Datuk Masidi Manjun said the revenue data for several components from 2022 onwards was clear and accepted by both sides, allowing those amounts to be settled first while discussions over earlier years continued.
“These are the matters that should be expedited because the data for several items is clear and not disputed by either side. Those are the amounts that should be paid first.
“The others concern the lost years, which are the subject of court proceedings. We are prepared to take longer to negotiate those,” he told a press conference on the sidelines of the 2026 Gabungan Rakyat Sabah (GRS) Convention at Dewan Tun Mustapha in Kudat today.
Masidi, who is also GRS deputy chairman, said the ongoing court case covered the period from 1974 to 2021, known as the “lost years”, for which relevant revenue data still needed to be obtained and examined.
He said Sabah accepted the judicial process and its outcome, but negotiations remained crucial to resolving the claim, particularly where the figures were not in dispute.
He added that support for the claim should reflect a united call by Sabahans for an early settlement, rather than serve merely as a political symbol.
Separately, Masidi clarified that the RM18 billion allocation for Sabah under Budget 2027 was not entirely for new development projects, as it also covered the operating costs of Federal Government ministries and departments in the state.
A substantial portion was allocated for administrative expenses, including salaries for about 120,000 federal civil servants working in Sabah, he said.
“It is therefore inaccurate to assume that the entire allocation can be used to resolve the state’s development problems, including water supply issues,” he said.
Masidi said the Health and Education departments were among the largest recipients of operating funds, with the two departments together accounting for more than half of the allocation for management expenses. - October 18, 2026