KOTA KINABALU, April 29 — Sabah leaders have reiterated that the state’s constitutional claim to its 40 per cent revenue entitlement must not be confused with federal...
Man captured, put on seven day remand after being on the run for allegedly beating wife so severely she miscarriedDeputy chief minister cum Finance Minister Datuk Masidi Manjun said the ongoing 40 per cent revenue discussions must not be confused to federal development funds or treated as part of broader development assistance to the state.
— Daily Express pic! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&Cs apply. KOTA KINABALU, April 29 — Sabah leaders have reiterated that the state’s constitutional claim to its 40 per cent revenue entitlement must not be confused with federal development allocations, stressing that the two are separate and cannot be conflated in ongoing negotiations with Putrajaya.
Deputy chief minister cum Finance Minister Datuk Masidi Manjun said the ongoing 40 per cent revenue discussions must not be confused to federal development funds or treated as part of broader development assistance to the state.
“This is based on constitution and must not be conflated with federal development allocations,” he said He added that Sabah also maintains its position that the 40 per cent calculation mechanism should include revenue generated from companies operating within the state, even if those companies are headquartered or declared elsewhere. “We also maintain revenue generated by companies operating in Sabah but declared outside the state, particularly those headquartered in Kuala Lumpur, should be included in the 40 per cent calculation, regardless of where the company is registered or declared,” he said.
He is ostensibly referring to national or multi-national companies in the oil and gas or palm oil industries who have large operations in Sabah but declare their taxes or revenue federally resulting in loss taxes for Sabah. The 40 per cent claim comes from a provision in the Federal Constitution - Article 112C and Part IV of Article 10 - which declares that two fifths of federal revenue derived from the state needs to be returned.
The provision has not been honoured from 1974 with Sabah receiving only RM26.7 million annually – considered a fraction of what it is owed - for nearly five decades, before revisions in recent years saw increases to RM125 million in 2022, RM300 million in 2023, RM306 million in 2024, and RM600 million currently.
“For the record, the Sabah Government maintains its position that the original formula under Article 112C and Part IV of Article 10 of the Federal Constitution must be implemented in full. “As such, it is not appropriate to suggest that Sabah’s efforts in this matter have been compromised, as the process must strictly adhere to constitutional provisions.
The state government is aware that the current Special Grant is still far below what should be derived under the constitutional formula,” he said.
“Although not all developments are publicly disclosed, this does not mean that the state government has not acted. In reality, every negotiation meeting does not end at discussion alone, but is followed by further action through official correspondence and continuous reaffirmation of the state government’s position, urging immediate action,” he said.
As talks between the two governments continue over the formula of the 40 per cent, Masidi said that the state has asked that has asked for immediate payment of revenue components that are not in dispute, such as income tax and customs tax. He said the state government is also open to discussions and to further refining constructive solutions on suitable payment options.
When faced with skepticism from several other elected representatives over the continuous delay and perceived hesitation from the federal government, Masidi said : “Don’t worry I’m still confident they will pay up, its just the time line. But we will push,” he said.
“In conclusion, both the state Government and stakeholders remain committed to ensuring that the implementation of Sabah’s 40 per cent entitlement is expedited and fully honoured by the Federal Government,” he said. JB High Court sentences man to 35 years jail, 12 whips of the cane for killing girlfriend, whose body was dumped by roadside in box JB High Court sentences man to 35 years jail, 12 whips of the cane for killing girlfriend, whose body was dumped by roadside in box
Sabah Revenue Entitlement Federal Constitution Article 112C Datuk Masidi Manjun Oil And Gas Industry Special Grant Sabah
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sabah to Putrajaya: Pay up the 40pc revenue now, we’ll keep fighting for bigger billions laterKOTA KINABALU, April 28 — Sabah has formally asked Putrajaya to immediately pay its 40 per cent revenue entitlement amounting to just over RM3 billion, with state Finance...
Read more »
Sabah launches first plumbers’ co-op in MalaysiaKota Kinabalu: Sabah’s plumbing industry has entered a new era with the official launch of the Koperasi Persatuan Tukang Paip Sabah Berhad, the first plum
Read more »
‘Timeless Elegance’ at Malaysia-China Chamber of Commerce’s Annual BallKota Kinabalu: The Malaysia-China Chamber of Commerce (MCCC) Sabah successfully concluded its 2026 Annual Ball, “Timeless Elegance · A Night of Bri
Read more »
Shafie presses for 40pc, raises Sebatik concernsKota Kinabalu: Warisan President Datuk Seri Shafie Apdal has called for the immediate implementation of Sabah’s 40 per cent revenue entitlement, stressing
Read more »
Sabah expects RM3 billion under 40pc formula for last yearKota Kinabalu: Sabah is expected to receive about RM3.019 billion in federal revenue for 2025 under the 40 per cent constitutional revenue-sharing formula, Fina
Read more »
40pc grant: Sabar calls for clear timelines, measurable progressKota Kinabalu: The Sabah Action Body Advocating Rights (Sabar) called for clear timelines, measurable progress and greater transparency in ongoing negotiations
Read more »