KUALA LUMPUR, MALAYSIA Nov 13, 2025 – Prime Minister Dato’ Seri Anwar Ibrahim has reaffirmed that the Federal Government will not appeal the Kota Kinabalu High Court’s decision regarding Sabah’s Special Grant of 40% of revenues, while emphasizing the steadfast commitment of the MADANI Government to finalize the right as enshrined in the Federal Constitution.
In response to a question in the Dewan Rakyat this morning, Anwar stated that the decision was made following a Special Cabinet Meeting on November 11, where a full briefing from the Attorney General and the National Treasury was considered. He explained that the appeal filed by the Federal Government is solely focused on the serious allegations in the court’s Grounds of Judgment, which claim that all Federal Governments from the era of Tun Abdul Razak to the present, as well as all Sabah State Governments from the administration of Tun Datu Mustapha to now, have breached constitutional duties and neglected responsibilities to Sabah.
“These serious and inaccurate allegations must be corrected,” said Anwar, adding that the appeal does not affect the core issue of the Special Grant. He also revealed that the Treasury Secretary General, Datuk Johan Mahmood Merican, has sent a letter to the Sabah State Secretary, Datuk Seri Safar Utong, to immediately initiate technical discussions on implementation.
Anwar dismissed speculation that the decision is linked to the 17th Sabah State Election (PRN), asserting that it is an action based on constitutional and legal processes. The status of the Sabah state government as “caretaker” or interim following the dissolution of the State Legislative Assembly does not hinder negotiations, and the process is expected to be expedited once a new government is formed, possibly in the first week of December.
The decision has been positively received by various parties, including the Member of Parliament for Paya Besar who raised the question, while Anwar urged all sides to maintain calm and focus on the implementation of Sabah’s rights. This issue stems from the High Court’s decision last November, which allowed the Society for the Promotion of Human Rights (SLS) to file a judicial review regarding the 40% revenue right, based on the 1963 Agreement.
In response, Anwar reiterated the MADANI Government’s commitment: “I reaffirm once again, this appeal does not affect the commitment to finalize Sabah’s Special Grant based on 40% of revenues, as enshrined in the Constitution.” He added hashtags #MalaysiaMADANI, #MADANIbekerja, and #RancakkanMADANI in his social media statement.
Negotiations are expected to cover legal and implementation aspects, with the Federal Government respecting the country’s legal processes. This issue continues to be a primary concern in Sabah, where the 40% revenue right from sources such as oil and gas is regarded as the state’s “fundamental right” since the formation of Malaysia.
