He said that the Hajiji Noor-led government had persistently upheld and asserted Sabah’s constitutional rights.
“The state government’s efforts in clarifying the historical records, including the share of growth of federal revenue derived from Sabah from 1964 to 1968, have been instrumental in reaffirming that the intent and effect of Articles 112C and 112D remain unchanged,” Chin said in a statement.
Articles 112C of the Federal Constitution deals with special grants and the assignment of revenue to Sabah and Sarawak, while Article 112D provides for periodic reviews of these grants.
Earlier today, the Kota Kinabalu High Court ruled that the federal government acted unlawfully by failing to honour Sabah’s 40% share of federal revenue for nearly five decades.
Chin went on to describe the court’s decision as a “turning point for Sabah”.
“The High Court has upheld what we have long fought for, our constitutional right to 40% of federal revenue (derived from the state).”
He added that the ruling was more than numbers, but about “dignity, fairness, and respect for Sabah’s rightful place in Malaysia”, as the money from the revenue could be used by the state government to build schools, hospitals and roads.
Chin said that Sabah’s victory was not one “against the federation, but for the federation”.
“It proves that Malaysia honours her founding promises, that no state stands beneath the constitution, and that true unity is built not on neglect but on respect,” he said, adding that SLS will resist any attempt to appeal or undermine this decision.
The SLS filed for a judicial review in 2022, claiming that the federal government had breached the Federal Constitution by failing to conduct a mandatory revenue review every five years since 1974.
It also argued that the government is constitutionally obliged to remit 40% of federal revenue collected from Sabah back to the state for each of those years.
The revenue-sharing formula has been a contentious issue for decades. Sabah politicians have called for the federal government to honour the state’s entitlement, as agreed in 1963, to 40% of the net revenue derived from Sabah.
Use of the formula had been suspended since 1974, with the federal government paying increased special grants to Sabah and Sarawak instead.