Swift Action on Sabah’s 40% Tax Entitlement to Drive Accelerated Development

29 December 2025

KOTA KINABALU: Tan Sri T. C. Goh, Permanent Honorary President of Hua Zong (Federation of Chinese Associations Malaysia) and President of the Federation of Chinese Associations Sabah (FCAS), welcomed Prime Minister Dato’ Seri Anwar Ibrahim’s statement affirming the Federal Government’s commitment to strengthening and accelerating Sabah’s development agenda following the formation of the new state government.

He stressed that the prompt fulfilment of Sabah’s entitlement to 40 per cent of net tax revenue must be treated as a top national priority.

Tan Sri Goh noted that the Prime Minister, in a Facebook post the previous evening accompanied by an infographic entitled “Sabah Towards Greater Prosperity and Progress in 2025”, highlighted the Madani Government’s determination to implement Sabah’s rightful claim to 40 per cent of net tax revenue.

He expressed hope that this reflects the Federal Government’s resolve to honour its commitment to “return tax revenue to Sabah”.

“As the Prime Minister has stated, under the leadership of the Madani Government, Sabah is steadily moving towards greater progress and prosperity. Policies related to Sabah’s development are anchored in the fulfilment of the Malaysia Agreement 1963 (MA63) and more efficient infrastructure management. As Sabahans, we sincerely hope the Federal Government will further intensify and expedite its efforts in honouring these commitments,” he said.

Tan Sri Goh, who is also President of the Federation of Hokkien Associations of Sabah and Labuan, made these remarks in a press statement on Sunday.

He observed that the outcome of the recently concluded Sabah state election reflects the people’s desire for a state government with a strong local consciousness and a greater emphasis on state rights and autonomy.

“The people also hope that the Federal Government will pay closer attention to Sabah and enhance cooperation and coordination with the state government more than ever before, so that development across all sectors can be optimised through genuine political and administrative collaboration, rather than allowing long-standing imbalances to persist,” he added.

He welcomed the Prime Minister’s assurance that development would be pursued through strategic investments aimed at driving inclusive economic growth, upgrading infrastructure, and creating high-quality employment opportunities, in line with the true development potential of the ‘Land Below the Wind’.

In this regard, he expressed the Federation’s readiness to cooperate with and support the new state government through practical and constructive actions to ensure the timely implementation of the relevant development agenda.

Tan Sri Goh pointed out that while the new state government has only just begun its five-year term, the Federal Government has less than two years remaining in its current mandate. He therefore urged the Federal Government to act with greater political will and administrative decisiveness in fulfilling its series of commitments to Sabah.

He further noted the Prime Minister’s emphasis on Sabah’s key growth sectors, including energy, tourism, modern agriculture and the blue economy, all of which possess immense development potential.

Sabahans, he said, hope that closer and more proactive Federal, state cooperation will also strengthen security and sovereignty safeguards.

In addition, Tan Sri Goh expressed hope that the Federal Government will continue to increase development allocations to Sabah to improve the state’s infrastructure, while actively assisting Sabah in attracting foreign direct investment, including the establishment of factories and diversified investments that can generate sustainable economic growth for the state.