Salleh said Sabah’s focus should now be on conducting professional and transparent negotiations that prioritise the interests of the people, ensuring long-term benefits for the state’s development and future generations.

“With this (latest) development, Sabah enters the negotiation phase from a clearer and more structured position, based on legal foundations confirmed by the court,” said Salleh.

“While the Attorney-General’s Chambers (AGC) will file a limited appeal on certain technical aspects of the judgment, such as procedural irregularities and historical allegations of abuse of power dating back to 1974, Sabah’s 40% entitlement remains unaffected.”

The Kota Kinabalu High Court last month ruled that the federal government acted unlawfully by failing to honour Sabah’s 40% share of federal revenue derived from the state for nearly five decades, directing Putrajaya to conduct a review with Sabah to determine the state’s 40% entitlement for each financial year from 1974 to 2021.

The court also ordered that the review must commence within 90 days and be completed within 180 days.

In a statement today, the AGC said it would not appeal the 40% revenue entitlement and would conduct negotiations with the Sabah state government immediately.

The AGC said its decision not to appeal the 40% revenue entitlement followed a special Cabinet meeting held today to discuss the Oct 17 High Court ruling, which came after a judicial review filed by the Sabah Law Society against the federal government.