By DayakDaily Team
KUCHING, Nov 14: Putrajaya must respond constructively and decisively to East Malaysia’s fiscal demands following the landmark Kota Kinabalu High Court ruling on Sabah’s 40 per cent net revenue entitlement.
Sarawak United Peoples’ Party (SUPP) Kuching Branch Youth Chief Nicholas Wung said the ruling which declared the federal government’s non-remittance of Sabah’s constitutional revenue share unlawful, has cleared long-standing ambiguity surrounding fiscal provisions under the Malaysia Agreement 1963 (MA63).
This, he added, provides both Sabah and Sarawak with a firmer legal basis to strengthen their negotiations with Putrajaya.
“With legal clarity now established, it is important that the federal government responds constructively to East Malaysia’s legitimate fiscal concerns rather than allowing the matter to remain unresolved,” he said in a statement today.
Wung described the decision as a timely opportunity for Sarawak to revisit its fiscal discussions, address historical revenue discrepancies and push for a more equitable federal–state revenue-sharing framework.
He said the ruling also calls into question the current revenue allocation model and gives Sarawak grounds to review outstanding entitlements accumulated over decades.
Wung further stressed that Sabah and Sarawak are equal partners under the MA63 framework, and Sabah’s legal breakthrough creates new momentum for both states to jointly advocate for comprehensive fiscal reforms, especially concerning petroleum and natural gas revenues.
Commenting on Putrajaya’s response to the ruling, Wung pointed out inconsistencies in federal messaging — noting that the government first stated it would not appeal, before later indicating there may be grounds to do so.
With public sentiment in Sabah rising sharply on the issue, he cautioned that mixed signals from the federal government could influence how Peninsular-based political parties are perceived ahead of the upcoming Sabah state election.
On Oct 17, the Kota Kinabalu High Court ruled that the federal government acted unlawfully by failing to honour Sabah’s 40 per cent share of federal revenue for nearly five decades.
High Court judge Celestina Stuel Galid also declared the special grant arrangements made by both the federal and State governments ‘unlawful, ultra vires and irrational’. – DayakDaily
