Securing Sabah’s 40% Revenue Entitlement through Article 112D(6) of the Federal Constitution

By Former Petagas assemblyman Datuk James Ligunjang

KOTA KINABAAlU: To ensure and affirm Sabah’s entitlement to 40% of revenues derived from Sabah, it is crucial to invoke Article 112D(6) of the Federal Constitution.

This provision acts as a safeguard against non-compliance, allowing the appointment of an Independent Assessor to review and determine the appropriate revenue to be returned to Sabah.

The Assessor’s findings are binding on both the Federal Government and the State Government of Sabah.

Continued debates and negotiations over Articles 112C and 112D can only undermine Sabah’s rightful entitlements, as has been evident since 1974, impeding Sabah’s economic and development progress.

For over half a century, denying Sabah its fair share of it’s constitutional revenues derived from Sabah is untenable. It is Sabah’s legitimate moneys.

We appreciate the tenacity of the current State Government in pursuing Sabah’s entitlement that resulted in significant achievement of increasing the grant from RM53.4 million under the previous administration to RM600 million in the current financial year, however further courage is needed to invoke Article 112D(6).

Article 112D underscores the Federal Government’s commitment to upholding the rights of Sabah and Sarawak States and ensures transparency and accountability in financial matters.

The Independent Assessor plays a critical role in minimizing conflicts of interest and ensuring objective revenue allocations.

The responsibilities of the Independent Assessor include scrutinizing financial data and revenue-sharing agreements to accurately determine Sabah’s rightful share.

This aligns with constitutional mandates and reinforces equitable resource distribution between Sabah and the Federal Government, as envisioned by the Malaysia Agreement 1963.

By invoking Article 112D(6), Sabah can confidently secure its revenue entitlements, fostering cooperation and mutual respect between the State and the federal government.

Fulfillment of this constitutional obligation is essential not only for Sabah’s economic development and Sabahans’ welfare but also for strengthening the Federation’s integrity.

To secure Sabah’s 40% revenue entitlement, leveraging Article 112D(6) to appoint an Independent Assessor is necessary.

This action will affirm constitutional compliance and contribute to a fair and just revenue-sharing framework as enshrined in the Federa lConstitution, important for Sabah’s development and prosperity.

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