Federal Government to Appeal Over Flaws in Sabah 40% Ruling

11 November 2025

KUALA LUMPUR: The Federal Government will appeal against the deficiencies found in the Kota Kinabalu High Court’s judgment on Sabah’s 40 per cent revenue entitlement.

According to a statement from the Attorney General’s Chambers, a Special Cabinet Meeting was convened to discuss the ruling made in the judicial review filed by the Sabah Law Society against the Government of Malaysia concerning Sabah’s Special Grant.

While the Federal Government affirmed its respect for the constitutional principle of the 40 per cent Special Grant and decided not to appeal that specific entitlement, it will challenge parts of the judgment deemed flawed.

The Attorney General informed the Cabinet that the judgment contained serious deficiencies, including allegations that both the Federal and Sabah State Governments had abused their powers and breached constitutional obligations, claims dating back to 1974.

The judgment also ruled that the post-2021 review of the Special Grant was unlawful, irrational, procedurally improper, and disproportionate.

In light of these findings, the Federal Government will proceed with an appeal limited to addressing the weaknesses and inaccuracies within the judgment’s reasoning.