KCCI Welcomes High Court Ruling on Sabah’s 40% Revenue Entitlement

27 October 2025

PENAMPANG: The Kadazandusun Chamber of Commerce and Industry (KCCI) welcomed the High Court’s decision affirming Sabah’s entitlement to 40% of the revenue collected in the state.

KCCI President Datuk Ladislaus Maluda described the decision as a “landmark and significant milestone in Sabah’s history”, marking long-awaited judicial recognition of the state’s constitutional rights under the Malaysia Agreement 1963 (MA63).

“After more than 60 years since the formation of Malaysia, the judiciary has finally affirmed the legitimacy of Sabah’s claim to its 40% revenue entitlement,” he said.

Datuk Ladislaus added that the ruling bodes well for Sabah, as it would allow the state to develop a more stable and sustainable financial base to meet its economic, social, and educational responsibilities.

“For far too long, Sabah has depended on a narrow range of revenue-generating sectors, resulting in inconsistent and insufficient income to fund development. Yet, Sabah is a richly endowed state, blessed with fertile lands, diverse cultures, tourism potential, minerals, agriculture, and forest, all sources that underpin the 40% entitlement,” he said.

He expressed optimism that Sabah would no longer be perpetually short of funds to finance essential development projects, particularly in infrastructure such as roads, water, electricity, telecommunications, healthcare, and education.

“Since independence, Sabah has struggled with inadequate funding, leading to it becoming the second poorest state in Malaysia, with four of the poorest districts nationwide,” he noted.

Ladislaus emphasised that the High Court’s decision extends beyond its legal significance, saying it “touches the very future and prospects of Sabah and its people.”

“The ruling reinforces the people’s trust in key institutions of governance, notably the judiciary, and restores confidence in Malaysia’s founding principle of equal partnership among its member states,” he said.

He added that greater financial autonomy would help address the longstanding development gap between Sabah and other states, enabling the implementation of crucial economic, social, and infrastructure programmes.

In the spirit of MA63, KCCI urged the Federal Government to respect and accept the High Court ruling without appeal.

“Federal recognition of Sabah’s 40% entitlement would strengthen Malaysia as a whole and foster unity among its citizens,” Ladislaus said.

He commended the Sabah Law Society for taking the lead in pursuing the matter through the courts, as well as all parties who supported the initiative.

Ladislaus also called for swift action to implement the ruling, following the invalidation of the interim payment mechanism by the High Court.

“It is vital that the decision be realised quickly so that Sabah and its people can begin to enjoy the benefits it brings. May this ruling serve as common ground for unity and as a guiding light for Sabah’s continued progress and development,” he concluded.