UTRAJAYA, Nov 12 — Prime Minister Datuk Seri Anwar Ibrahim will address Parliament tomorrow to explain the government’s decision not to appeal the Kota Kinabalu High Court ruling on the Special Grant based on the 40 per cent revenue share for Sabah, as provided for under the Federal Constitution.
Anwar, who is also the Finance Minister, said the clarification will also cover the appeal concerning perceived flaws in the court’s judgment.
He stated that the decision was reached by consensus after a special Cabinet meeting was held to deliberate on the matter.
“Following a special Cabinet meeting (yesterday) to review the Kota Kinabalu (Kota Kinabalu High Court) judgment, we reached this decision after hours of deliberation, considering the views and proposals of each Cabinet member,” he said.
He made the remarks at the Prime Minister’s November 2025 gathering with the staff of the Prime Minister’s Department here today, which was also attended by Deputy Prime Minister Datuk Seri Fadillah Yusof and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.
Following the Federal Government’s decision, the Attorney General’s Chambers (AGC) announced yesterday that negotiations with the Sabah Government will start immediately.
The AGC said the Federal Government respected the principle of the 40 per cent Special Grant enshrined under the Federal Constitution.
At the same meeting, the Attorney-General also provided advice and views to the Cabinet regarding several defects in the judgment’s reasoning, including allegations that the Federal Government and the Sabah Government had abused their powers and breached constitutional obligations said to have involved both governments since 1974.
The AGC said that the Grounds of Judgment also stated that the Review after 2021 was unlawful, irrational and disproportionate.
On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government acted unlawfully and beyond its constitutional powers when it failed to fulfil Sabah’s rights to 40 per cent of federal revenue for the years 1974 to 2021.
The decision was delivered by Judge Datuk Celestina Stuel Galid, who described the special grant made between the Federal Government and the Sabah Government as “invalid, ultra vires and irrational” and in breach of the Federal Constitution.
The court also issued a mandamus order directing the Federal Government to conduct a revenue review with the Sabah Government under Article 112D of the Federal Constitution to reinstate Sabah’s right to 40 per cent revenue for each financial year from 1974 to 2021.
The order required the review to be carried out within 90 days, while a mutual agreement between the two governments must be reached within 180 days from the date the order was issued (Oct 17).
