Chan urges federal, state governments to unite to uphold Sabah’s MA63 rights

23 October 2025

KOTA KINABALU: Kota Kinabalu Member of Parliament (MP) Datuk Chan Foong Hin has called for stronger cooperation between the Federal and State Governments to uphold Sabah’s constitutional rights under the Malaysia Agreement 1963 (MA63) through genuine dialogue, mutual trust, and transparent implementation.

Following a special briefing by Prime Minister Datuk Seri Anwar Ibrahim yesterday, Chan said the federal government had reaffirmed its commitment to respecting the legal process and to studying the written judgment of the Kota Kinabalu High Court.

Chan, who is also the Deputy Plantation and Commodities Minister, said he personally expressed to the Prime Minister the need for both sides to work in unity and good faith.

“I take note of the Federal Government’s continued commitment to resolving all outstanding MA63 matters, enhancing the Special Grant rate for Sabah, and increasing annual operational and development allocations to uplift the well-being and prosperity of the people of Sabah,” he said in a statement today.

Chan also proposed that the existing Technical Committee under the Malaysia Agreement 1963 Implementation Action Council (JKTMTPMA63) be given the mandate to lead the 40 per cent entitlement review process within the 90-day timeframe set by the court.

He added both the Federal and Sabah Governments, through JKTMTPMA63, were formulating a new mechanism to determine the future calculation of the Special Grant, consistent with the principles and spirit of MA63.

“It is also timely for the Ministry of Finance to disclose the actual amount of federal revenue collected from Sabah, to promote transparency and prevent any misunderstanding or misrepresentation by other parties,” he said.

Chan stressed this development marked an important step forward in strengthening federal-state cooperation and reaffirmed the shared commitment to equitable development for the people of Sabah.

The Kota Kinabalu High Court’s ruling on 17 October said that the federal government had acted unlawfully by failing to fulfil Sabah’s constitutional right to 40 per cent of net federal revenue collected from the state over the past five decades.

According to the judgment, the court issued an order compelling Putrajaya to review the revenue-sharing arrangement with the Sabah government and to reach an agreement on the state’s 40 per cent entitlement for each financial year from 1974 to 2021 within 180 days.