Senior federal counsel Ahmad Hanir Hambaly said the AG, as the custodian of public interest, would file a submission to make his stand known.
The court will consider whether the application is frivolous before deciding whether to hear the merits of the case.
Hanir said the leave application would be heard in the Kuala Lumpur High Court on Aug 12.
In the application filed last week, Syed Saddiq asked the court to restore his entitlement to the funds owed to him last year and to this year’s allocation.
He named the prime minister and the government as respondents in his suit.
In an affidavit filed in support of the application, he alleged that the funds were held back as soon as he withdrew support for the unity government last September.
Syed Saddiq said the decision to hold back the funds was unfair, against the law, and violated the rights of the people in Muar, especially as constituencies aligned with the government had received funds.
He said RM3.2 million was already disbursed to his constituency from his time in the government bloc until Sept 10, 2023.
As a government MP, he was allocated RM4 million a year, he said. Of the amount, RM300,000 was an outright grant to run his parliamentary service centre, RM1.7 million was for welfare, well-being and disaster relief purposes, and RM2 million was for people-friendly projects to be applied through a unit in the Prime Minister’s Department.
He said the withholding of funds was a way to punish voters in Muar.
He also said five MPs received allocations immediately after backing the government: Labuan MP Suhaili Abdul Rahman, Jeli MP Zahari Kechik, Gua Musang MP Azizi Abu Naim, Kuala Kangsar MP Iskandar Dzulkarnain Abdul Khalid, and Tanjong Karang MP Dr Zulkafperi Hanapi.
Syed Saddiq is seeking an annulment of the decision to withhold the funds, and the disbursement of the withheld RM500,000 as well as the additional RM230,300 for approved projects.
The RM500,000 in funds was to be used for community welfare projects, while RM230,300 was for projects that were initially approved but later cancelled, for initiatives like a resource centre for a school and carpets for suraus.
Syed Saddiq is also seeking an order for the government to restore his access to the MP funding system, and allocations to Muar as are given for government-backed constituencies.