KOTA KINABALU — Prime Minister Datuk Seri Anwar Ibrahim addressed concerns over Sabah’s 40% revenue entitlement during a brief exchange with a member of the public at the Gaya Street Sunday Market.
The conversation centred on the long-standing issue of the state’s constitutional right to a share of federal revenue, which has gained renewed attention following a recent High Court ruling.
The Prime Minister explained that although the federal government collects about RM10 billion in revenue from Sabah, it allocates RM17 billion back to the state.
“Don’t listen to the political campaigns of others, listen to me — I am the prime minister,” Anwar said in a video of the encounter that quickly went viral, as reported by Malay Mail Online.
The exchange began when a man asked when the federal government would fulfil the constitutional provision for Sabah to receive 40% of federal revenue derived from the state, as outlined in Article 112C of the Federal Constitution.
“Datuk Seri, just want to ask… when is the 40% coming?” the man asked.
Anwar responded, smiling, “Hang on, wait for me to explain.”
He then clarified, “How much revenue do we collect from Sabah? RM10 billion. How much do we give back to Sabah? RM17 billion.”
The conversation briefly continued, with the man arguing that the 40% entitlement pertains to tax revenue and differs from the RM17 billion allocation, a point which Anwar appeared to defend before the video ended.
The debate over the 40% revenue share has intensified following the High Court ruling affirming Sabah’s entitlement, as well as the resignation of UPKO president Datuk Ewon Benedick from the federal Cabinet over the Attorney General’s Chambers’ stance on the matter.
Anwar’s comments come at a time of increased focus on Sabah’s fiscal autonomy and the implementation of the Malaysia Agreement 1963 (MA63), both of which are expected to be significant issues in the lead-up to the 17th Sabah state election. – November 9, 2025