Sabah seeks immediate payment of undisputed 40% revenue claim from 2022

Sarawak is demanding the Federal Government immediately commence paying the undisputed portion of its 40% net revenue entitlement for 2022 and beyond, distinguishing it from the more contentious claim for 1974 to 2021, which is currently under legal review. Finance Minister Datuk Masidi Manjun emphasized that the revenue figures for certain elements from 2022 onwards were undisputed and accepted by both parties, thus warranting expedited payment.

"These are the matters that should be expedited because the data for several items is clear and not disputed by either side. Those are the amounts that should be paid first," Manjun stated during a press conference at the 2026 Gabungan Rakyat Sabah (GRS) Convention. The remaining claim pertains to the "lost years," 1974 to 2021, which are currently being contested in court and require further investigation and negotiations.

While Sabah respects the judicial process and outcome, Manjun stressed that negotiations remain vital to resolving the dispute, particularly where figures are not in contention. He also clarified that the RM18 billion budget allocation for Sabah in Budget 2027 encompasses both development projects and the operational costs for Federal Government ministries and departments in the state.

A significant share of this allocation is earmarked for administrative expenses, including salaries for around 120,000 federal civil servants employed in Sabah. Manjun highlighted that the Health and Education departments received the largest share of operational funds, accounting for over half of the administrative expenses. He cautioned against the misconception that the entire budget could be used to address the state's development challenges, such as water supply issues.