KOTA KINABALU, SABAH March 16, 2026 – In a resolute address during the Majlis Berbuka Puasa Madani 2026 at Universiti Malaysia Sabah (UMS), Prime Minister Dato’ Seri Anwar Ibrahim reiterated the federal government’s unwavering commitment to honoring Sabah’s 40 percent revenue share as enshrined in the Malaysia Agreement 1963 (MA63).
Anwar, who also serves as Finance Minister, emphasized that the entitlement is “final” and not open to negotiation or appeal. “We are not appealing the 40% case and that is final … As far as this government is concerned, we have given a categorical assurance. This is a firm commitment,” he stated during the event. He further declared in Parliament and Cabinet that there would be “no negotiations,” underscoring the government’s dedication to delivering 40 percent of the state’s revenue back to the people of Sabah.
The assurance comes amid ongoing discussions surrounding Sabah’s historical claims under MA63, which formed the basis for the state’s entry into Malaysia. The 40 percent entitlement refers to Sabah’s right to a portion of net revenue collected by the federal government from the state, a provision rooted in the agreement’s constitutional safeguards. Anwar highlighted that detailed talks are necessary to ensure transparent and orderly implementation, benefiting Sabah’s development and its residents directly.
This reaffirmation addresses recent legal developments, including a 2025 High Court ruling affirming Sabah’s rights, though the federal government has appealed certain aspects of the judgment’s grounds—not the entitlement itself—to correct perceived historical inaccuracies. Critics, however, have called for the appeal to be dropped entirely to fully honor the commitment and reset federal-state relations.
Anwar’s statement has been welcomed as a step toward fulfilling long-standing promises, with the Prime Minister describing it as a “trust and promise” to the people of Sabah, one of Malaysia’s founding partners. The event, held during Ramadan, also served as a platform to strengthen unity and development initiatives under the Malaysia Madani framework.
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