Sabah expects to settle 40% net revenue within a year

25 July 2023

By Wartawan Nabalu News

KOTA KINABALU: Sabah is hopeful that the long-standing issue of its 40 per cent special revenue rights grant will be resolved within the next 12 months, according to Deputy Chief Minister Datuk Seri Dr Jeffrey Kitingan.

Kitingan who is also the Keningau MP stated that it is unnecessary to devise a new formula for the special revenue rights grant.

"The Federal Constitution already provides an explicit mechanism for this, as stated in Article 112D, 112C, and 112C (6), along with Para 24 of the IGC Report," he said in a statement on Monday.

He added that the necessary data for the calculations should be provided by the Federal agencies such as the Finance Ministry and the Inland Revenue Board of Malaysia (LHDN).

He also suggested that Sarawak adopt the same formula as Sabah for consistency and to expedite the settlement process.

Kitingan, who represents Sabah in the Technical Committee of the Malaysia Agreement 1963 (MA63), chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, said Prime Minister Datuk Seri Anwar Ibrahim had pledged to deliver on the outstanding constitutional rights of Sabah.

Kitingan said it is crucial to ensure Sabah receives its rightful revenue rights entitlement in resolving this issue which has been pending for the past 58 years.

"The people of Sabah have waited over half a century for this moment, and it is our obligation to ensure that the wait does not extend further," he said.

He acknowledged and appreciated the interim RM300mil special grant allocation from Putrajaya but stressed that it was only a temporary solution.

"The interim allocation, though substantial, is only a part of what is rightfully due to Sabah. The RM300mil is indeed a positive step, but our ultimate goal is the actualisation of the 40% net revenue issue," he said.

He clarified that accepting the RM300mil grant did not mean that Sabah was relinquishing its rights to the 40% net revenue.

Kitingan also dismissed the opposition's allegations that the Gabungan Rakyat Sabah (GRS) government had caused Sabah to lose its rights to the 40 per cent.

"We call upon all parties, especially the federal government, to cooperate and ensure that this matter is resolved within the stipulated time frame," he said.

He said securing Sabah's rightful share of revenue was crucial for protecting the state's autonomy and developing its economy for the well-being of its citizens.