Special committee to refine terms, method for allocating Sabah’s 40% entitlement

Deputy prime minister Fadillah Yusof said a special committee formed to discuss the mechanism for implementing Sabah’s 40% net revenue entitlement can report to the state government after the Nov 29 election. (Bernama pic)

PETALING JAYA: A special committee involving the federal and state governments has been established to discuss the mechanism for implementing Sabah’s 40% net revenue entitlement as outlined in the Malaysia Agreement 1963 (MA63), says deputy prime minister Fadillah Yusof.

Fadillah said the special committee would be co-chaired by Sabah state secretary Safar Untong and Treasury secretary-general Johan Mahmood Merican.

He said Putrajaya had decided not to appeal the 40% entitlement itself, and was now focused on how to implement what is already provided for under the constitutional provision, reported Berita Harian.

“The committee can report to the state government once the new Sabah government is formed (after the Nov 29 election),” he said, adding that the committee could also report directly to the Cabinet.

“The time frame (for implementation discussions) is very short. The negotiations began today, the committee was formed, and if possible, they will detail the implementation (process).”

Fadillah, who is also the chairman of the MA63 Implementation Action Council’s technical committee, was speaking after a special coordination meeting on monitoring Sabah programmes and development projects in Kota Kinabalu.

The Kota Kinabalu High Court, in an Oct 17 ruling, directed the federal government to conduct a review with Sabah to determine the state’s 40% entitlement for each financial year from 1974 to 2021.

Justice Celestina Stuel Galid also declared the special grant arrangements made by both federal and state governments unlawful and unconstitutional.

The court ordered for the review to commence within 90 days and be completed within 180.

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