KOTA KINABALU, SABAH, MALAYSIA November 17, 2025 – The Federal Government and the Sabah State Government today held the first meeting of the Special Grant Negotiation Committee at the officer level, as an initial step in reviewing the value of the Sabah Special Grant in line with Articles 112C and 112D of the Federal Constitution, following the High Court Order dated 17 October 2025.
The meeting, which proceeded harmoniously, was co-chaired by Datuk Seri Panglima Sr. Haji Safar bin Untong, State Secretary of Sabah on behalf of the Sabah State Government, and Datuk Johan Mahmood Merican, Treasury Secretary General, Ministry of Finance Malaysia on behalf of the Federal Government.
According to the joint media statement issued after the meeting, both parties agreed that this discussion marks an effective and constructive beginning. They also reached an agreement to conduct the review of the Sabah Special Grant based on the 40% net federal revenue formula as stipulated in Articles 112C and 112D of the Federal Constitution.
“This discussion marks an effective and constructive beginning, with a joint agreement that the review of the Sabah Special Grant is based on the 40% net federal revenue formula under Articles 112C and 112D of the Federal Constitution,” emphasized the statement.
Representatives from both governments also reaffirmed their commitment to conducting discussions progressively in the spirit of cooperation, mutual respect, and understanding. This includes the sharing of necessary financial data and information to ensure the negotiation process runs smoothly.
“Both parties also expressed confidence that this meeting serves as a strong foundation for achieving a resolution,” added the statement, reflecting shared optimism toward efforts to resolve this issue.
The meeting was also attended by senior representatives from both sides, including Dato’ Sri Ab Rahim bin Ab Rahman (Director of National Budget, Ministry of Finance Malaysia), Encik Zulkhairil Amar Bin Mohamad (Deputy Director of National Budget), Puan Marzaitul Azura Binti Mokhtar (Head of Research Division, Attorney General’s Chambers), Encik Mohd Saiful Sungkih Bin Abdullah (Secretary of Sabah & Sarawak Affairs Division, Prime Minister’s Department), and Encik Norali @ Ag Norali Bin Ag. Damit (Federal Finance Officer, Sabah Treasury Malaysia).
On the Sabah side, participants included Datuk Brenndon Keith Soh (State Attorney General of Sabah), Datuk Nor Asiah Binti Mohd Yusof (Legal Advisor to the Right Honourable Chief Minister), Datuk Mohd Sofian Alfian Nair (Permanent Secretary, Sabah Ministry of Finance), Datuk Jasmine Teo (Director of State Economic Planning Unit), Puan Chee Shok Ting (Deputy Permanent Secretary (Development), Sabah Ministry of Finance), Datuk Dgku Fazidah Hatun Binti Pg. Bagul (Deputy State Attorney General of Sabah I), Puan Evina Brenda Majimbun (Junior Secretary of State Sales Tax Division, Sabah Ministry of Finance), and Encik Mohd. Ikhwan Bin Ramlan (Senior Legal Officer, State Attorney General’s Department).
This step is seen as a positive sign in efforts to resolve long-standing financial issues between the federal and state levels, which have been a hot topic in Sabah. The Sabah State Government is expected to obtain a fair resolution through this negotiation process, in line with the spirit of unity in the Federal Constitution.
The joint media statement was signed by Datuk Seri Panglima Sr. Haji Safar bin Untong and Datuk Johan Mahmood Merican on 17 November 2025.
