KUALA LUMPUR, November 12 — Prime Minister Datuk Seri Anwar Ibrahim announced that discussions between the federal government and Sabah on the state’s 40 per cent revenue entitlement will be expedited once the new state government is established. He said that while negotiations have already begun in principle, the process could not proceed fully under the current caretaker administration.
A special Cabinet meeting held today reviewed the Attorney-General’s legal opinion on the matter, reaffirming the federal government’s commitment to resolving the issue under the Malaysia Agreement 1963 (MA63) through transparent and good-faith discussions with Sabah leaders.
In the same meeting, the Attorney-General’s Chambers informed the Cabinet that the federal government respects the 40 per cent revenue entitlement as provided under the Federal Constitution and will not appeal against the Kota Kinabalu High Court judgment concerning the “special grant” to Sabah.
However, the government will appeal certain legal defects in the judgment’s reasoning. Anwar stressed that formal negotiations with the Sabah state government will begin immediately after the new administration is formed — possibly as early as the first week of December — as part of the federal government’s commitment to upholding justice and fairness for Sabah.
