UPKO Welcomes High Court Decision On Sabah’s 40 Percent Revenue Entitlement

17 Oktober 2025

1. United Progressive Kinabalu Organisation (UPKO) welcomes the decision of the Sabah High Court in favour of the Sabah Law Society (SLS) in the case concerning Sabah’s constitutional entitlement to 40 percent of federal revenue derived from the state.

2. This right is enshrined under Article 112D of the Federal Constitution, forming an integral part of the spirit of the Malaysia Agreement 1963 (MA63).

3. The decision reaffirms that the rule of law in Malaysia remains intact and reflects the ongoing commitment to the principles embodied in MA63.

4. UPKO also extended its appreciation to the Sabah Law Society (SLS) for its courage in bringing this case to court, which has now paved the way for potential policy reforms and a more equitable economic relationship between Sabah and the Federal Government.

5. This ruling is not only a victory for SLS but also a moral triumph for the people of Sabah, who have long sought the full recognition and implementation of the state’s constitutional rights under MA63.

6. We described the judgment as a historic milestone in Sabah’s struggle for its constitutional rights, demonstrating that the country’s legal system continues to serve as a credible avenue to uphold justice and ensure that constitutional commitments are honoured.

7. UPKO fully respects the judicial process and believes this decision sends a clear signal to the Federal Government to take its constitutional obligations towards Sabah seriously. This is the right of the people of Sabah not merely a political promise or a technical issue.

8. The High Court’s ruling brings much-needed relief to the people of Sabah after nearly half a century without a proper review of the 40 percent revenue entitlement by the Federal Government.

9. The struggle for Sabah’s rights is not solely about financial matters but also concerns dignity, justice, and the rightful position of Sabah within the Federation of Malaysia.

10. UPKO has consistently championed the full implementation of Sabah’s rights under MA63 without compromise. This decision further strengthens that cause and renews the people’s confidence in the pursuit of justice for Sabah.

11. We urged the incoming new Sabah State Government to take a more proactive role in the forthcoming negotiations on other matters under the Malaysia Agreement to ensure that any outcome genuinely reflects the interests of the people of Sabah, rather than serving as a mere symbolic gesture.

12. We do not want these negotiations to become another exercise on paper. UPKO calls upon both the State and Federal Governments to engage in transparent, professional, and fair discussions anchored in the true spirit of justice.

13. We also urged that the Federal Attorney General not to file an appeal in respect of the decision by the Kota Kinabalu High Court today.

14. ⁠UPKO reaffirmed its commitment to continue serving as the voice of the people, ensuring that every right guaranteed under the Federal Constitution and MA63 is upheld.

This is not about politics, it is about the future of our state.

UPKO Secretary-General

YB Senator Datuk Nelson W Angang