By J.Ligunjang JP, Former State Assemblyman
KOTA KINABALU: On 29 October 2026, the Court of Appeal heard the Federal Government’s appeal against the High Court’s decision on Sabah’s constitutional right to the 40% Special Grant.
The dispute centres on the 48 Lost Years (1974–2021), during which Sabah continued receiving RM26.7 million annually, the amount fixed for 1973.
The Federal Government argued that the original Review Order remained legally effective and that its payments fulfilled its constitutional obligations.
The Sabah Law Society (SLS) and the Sabah State Government, however, maintained that the constitutional review required under Article 112D had never been properly completed.
The judges questioned the parties on the failure to conduct a proper review, the role of an independent assessor, and the legal remedies ordered by the High Court.
However, no decision was delivered, and case management via e-Review was fixed for 12 November 2026.
The fundamental question remains: Did continued payment under the old Review Order fulfil the Federal Government’s constitutional obligations, or must Sabah’s entitlement for the 48 Lost Years still be determined?
Sabahans now await the Court of Appeal’s decision on this significant constitutional and financial issue.
A Call for Justice, Accountability and Constitutional Integrity.
This is not merely a dispute over money; it is a question of constitutional rights, justice and the integrity of the Malaysia Agreement 1963 (MA63). Sabah’s 40% Special Grant is a constitutional entitlement, not a favour to be granted at the discretion of the Federal Government.
The people of Sabah deserve a transparent and definitive resolution that upholds the Federal Constitution, establishes accountability for the 48 Lost Years, and ensures that Sabah receives what it is legally entitled to under the Constitution.
Any outstanding entitlement must be properly assessed and determined in accordance with the law.
We therefore call upon the Federal Government to honour the spirit and letter of the Federal Constitution, respect the judicial process, and work towards a fair, transparent and timely resolution of this long-standing issue.
Sabah’s constitutional rights must not be allowed to remain unresolved indefinitely.
The 40% entitlement is about more than revenue. It is about fairness in the Federation, respect for Sabah’s constitutional safeguards, and the trust upon which Malaysia was founded.
Sabahans must continue to stand united, remain vigilant and advocate peacefully for their constitutional rights.
The time has come for justice to be done, for constitutional obligations to be honoured, and for Sabah’s rightful entitlement to be resolved once and for all.
