UPKO President Ewon Benedick Resigns from Federal Cabinet in Standoff Over Sabah’s 40% Revenue Rights

PENAMPANG, SABAH, MALAYSIA  Nov 8, 2025  – In a bold assertion of Sabah’s constitutional entitlements, United Progressive Kinabalu Organisation (UPKO) President Datuk Ewon Benedick announced his immediate resignation from the federal Cabinet today, citing irreconcilable differences with the Attorney General’s Chambers (AGC) stance on the state’s long-disputed 40% revenue rights.

The move, rooted in a recent High Court ruling in Kota Kinabalu, underscores escalating tensions over the Malaysia Agreement 1963 (MA63) and Sabah’s foundational role in the federation. Benedick, who serves as Minister of Entrepreneurship Development and Cooperatives, framed his decision as a principled stand aligned with UPKO’s charter to champion Sabah’s rights under key constitutional documents, including the Cobbold Commission Report, Inter-Governmental Committee Report, MA63, and the Malaysia Act.

“Respect for the history of Malaysia’s formation, as translated through these foundational documents, should be the basis for the federation’s direction and future,” Benedick stated in a detailed media release. He specifically criticized the AGC’s written submissions in the judicial review filed by the Sabah Law Society, which he said “disregards” Sabah’s conditions for joining the federation. “I cannot agree with the AGC’s position and views,” he added, noting the chamber’s role as legal advisor to the Prime Minister and federal government.

Benedick highlighted the incongruity of remaining in Cabinet amid such a fundamental clash. “It would be highly awkward for me to continue my membership in the Federal Cabinet with the AGC’s stance, which I believe will remain their position,” he explained. Over his three-year tenure, he said the federal approach to Sabah’s 40% claim—enshrined in Article 112C and Paragraph 2(1) of Part IV of the Tenth Schedule—has been “in direct conflict” with his convictions as UPKO leader.

The resignation follows a High Court decision on October 17, where Justice Celestina Stuel Galid upheld Sabah’s claim in the judicial review. Benedick, who previously filed an originating summons against both federal and state governments in June 2022 (withdrawn in September 2023), reiterated his call for the AGC to forgo any appeal and initiate negotiations with the Sabah government for implementation. “As UPKO President, I want to see Sabah’s rights enforced—that is the principle and reason I entered politics,” he affirmed.

In a letter to Prime Minister Dato’ Seri Anwar Ibrahim, Benedick will formally notify his exit, expressing gratitude for the collaborative space Cabinet provided to advocate for Sabah’s interests. “I thank the Prime Minister for the opportunity of togetherness in the Federal Cabinet, which has been a platform for me to fight for principles related to Sabah’s rights,” he wrote.

Looking ahead, Benedick plans to convene an emergency UPKO Supreme Council meeting next Monday to deliberate the party’s “Sabah First” agenda, reinforcing UPKO’s commitment to MA63 implementation. His departure adds fresh complexity to federal-state relations, particularly as Sabah navigates fiscal autonomy demands amid broader MA63 revival efforts under the Anwar administration.

The 40% revenue entitlement, a cornerstone of Sabah’s entry into Malaysia, has long symbolized the state’s pushback against perceived fiscal imbalances. Benedick’s exit—his second high-profile resignation this year—signals deepening rifts within the unity government, where Sabah representatives hold sway, and could galvanize regional advocacy ahead of upcoming state polls.

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