By Remy Majangkim
KOTA KINABALU: The Sabah High Court decision on the Sabah 40% entitlement file by Sabah Law Society (SLS) has positive outcomes for all Sabahans.
The Sabah Law Society (SLS) filed a judicial review that the Federal Government had breached the Federal Constitution for failing to conduct a continuous five-year review since 1974, Sabah’s 40% entitlement.
On the 17th of October, Sabah High Court Judge Celestina Stuel Galid’s decision allowed an order of Mandamus for SLS to direct the federal government for review.
What does it mean to ordinary people?
Order of mandamus means that the Federal Government needs to act by decision of the Sabah High Court, within the stipulated time frame. Direct translation from the Latin order of mandamus is “We command”.
There are, amongst other items, included but not limited to the ground judgment pending publication.
“This is to give effect to the Federation’s obligation to make the 40 per cent entitlement payment to the State of Sabah under Article 112C, read with subsection (1) of section 2 of Part IV of the Tenth Schedule of the Federal Constitution, for each consecutive financial year from 1974 to 2021”. Excerpt from The New Strait Times, 17 October 2025.
The Federal Government is obligated and shall make pending payment to the Sabah State Government from 1974 to the 2021 financial year.
This means that the Sabah State Government will have a huge windfall from the Federal Government.
The 47 years of unpaid entitlement will be worth in the Billions of Ringgits as the entitlement, including indirect tax and direct tax collected from Sabah.
If one includes the Oil and Gas from our continental shelf, it may attract much more for the 3.5 million Sabahans.
The Federal Government has two options: to challenge the decision through the Federal Court, whatever it may be, through the process of law, or ignore it completely and not make any payment.
Yes, they can, but by doing so, it will alleviate the matter to be pursued through the London court for breach of agreement.
The paper trial has begun, been filed, and published by the High Court of Sabah. It should be known that the Malaysia Agreement 1963 is a Trusteeship and a decolonization procedure from the British to the Federation of Malaya (also known as Malaysia).
It will be a bigger mess ahead, as the decision from London may implode the Malaysia Experiment. The safest way for the Federal Government to comply with the will of the court and the Federal Constitution.
In the recent podcast that went viral, Sabah’s 40% entitlement got cynically reviewed and downplayed by a Singaporean Professor and panel speakers from Sabah and Sarawak.
The problem lies with the panel itself; they are considered uncouth and ill-informed about the struggle in Sabah. Our best bet is that these panels stay in Kuala Lumpur and do not involve actual activists’ work that could share balanced views appropriately. It is easier to call this panel rather than buying air tickets and lodging for the real activist to explain our position.
The 40% entitlement endemic to Sabah, during the formation of Malaysia, Sarawak had a different negotiation team and concerns.
The deal has been made and the agreement signed. Malaysia needs to assert itself for bigger change, how to calculate and make the first move to align Sabah 40%? All the monies collected from Sabah, Sarawak, and the rest of the states in Malaya accrued in consolidated funds. So whatever monies collected from Sabah, 40% of it is deducted from the consolidated funds, and the rest will be used in the Federal Government Malaysia Plan. Whatever monies allocated to Sabah are considered “Wang Ehsan” or gratis.
Sabah is not short of people who are competent in managing the State’s resources.
The reign or error has come to an end. Sabahans need to step up and vote for the right people and party in office. We could not lose our future to well-known scammer politicians and outsiders. It is our land, our resources, and we can take care of ourselves. May the festival of lights shine upon our darkest hour. Let there be light.
