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NON-APPEAL ON 40 PCT REVENUE RULING PAVES WAY FOR SABAH’S PROGRESS, SAY RESIDENTS

13/11/2025 12:30 PM

KOTA KINABALU, Nov 13 (Bernama) -- The Federal Government’s decision not to appeal the Kota Kinabalu High Court ruling on Sabah’s entitlement to a 40 per cent special grant from federal revenue will have a positive impact on the state’s development.

The Tawau chapter chairman of the Brunei-Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA), Wong Thart Sin, said the decision paves the way for further discussions to channel more revenue to Sabah.

“I believe with this allocation, sustainable development can be realised through improved infrastructure, education and healthcare facilities, which will bring significant benefits to the people.

“Economic development at the community level can also be enhanced, for example, by allocating funds to establish at least one micro, small and medium enterprise in each village,” he told Bernama.

On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government had acted unlawfully and beyond its constitutional authority by failing to fulfil Sabah’s right to 40 per cent of federal revenue from 1974 to 2021.

On Monday, the Attorney-General’s Chambers announced that the Cabinet had decided not to appeal the ruling.

For fashion designer Mohd Norwahidin Noordin, 24, the special grant could help boost tourism development in his hometown of Semporna, turning it into a more competitive tourism hub and bringing greater economic opportunities to locals.

“Semporna is increasingly popular among foreign tourists visiting the islands, so improving infrastructure, such as building more hotels, would open up more job opportunities for residents,” he said.

He said the funds could also finance the construction of a local airport in Semporna to improve access for tourists, as they currently have to land at Tawau Airport, located more than 80 kilometres away.

Private sector worker Noor Aina Abdul Aziz, 51, shared the same sentiment, saying that development in Semporna and other districts in Sabah should be strengthened, especially through affordable housing for locals.

The mother of five said squatter settlements remain common in Semporna and hopes that more low-cost housing projects can provide comfort and stability for residents.

“If possible, development in Semporna should focus on creating more job opportunities, as many people here are still unemployed,” said Noor Aina, who is also a grandmother.

Retired teacher Haidin Osman, 62, from Sandakan, said the decision not to appeal reflects the Federal Government’s concern for Sabah and its commitment to seeing the state progress sustainably.

“With the return of this revenue, Sabah can now better plan and accelerate its development and economic growth. We are grateful...it shows the Federal Government’s genuine concern for the people of Sabah,” he said.

Civil servant Faizan Mohamad, 38, from Tawau, said good relations between the Federal and state governments would lead to positive outcomes in implementing the 40 per cent revenue arrangement.

He expressed confidence that Prime Minister Datuk Seri Anwar Ibrahim and Chief Minister Datuk Seri Hajiji Noor will work together to develop the best mechanism for implementing the revenue sharing.

-- BERNAMA

 

 


 


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