KUALA LUMPUR – A special committee has been formed involving both the federal and state governments to discuss the mechanism for implementing Sabah’s 40% net revenue claim under the Malaysia Agreement 1963 (MA63), announced Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who also chairs the MA63 Implementation Action Council Technical Committee (JKTMPMA63), confirmed that the committee will be co-chaired by Sabah State Secretary Datuk Seri Safar Untong and Treasury Secretary-General Datuk Johan Mahmood Merican, Bernama reported.
“The committee will report to JKTMPMA63, but it may also directly update the Cabinet on the progress and mechanisms for implementation,” Fadillah said.
He added that the committee’s discussions would be expedited, with hopes to finalise the implementation details as soon as possible.
“The timeframe for these discussions is very tight. The negotiations began today with the formation of the committee, and if feasible, the implementation process will be outlined,” Fadillah noted.
“I’m awaiting the report and the outcomes of these talks. The formation of the committee is crucial for providing recommendations to the government… We’ll wait for the full report later,” he added, speaking to the press at Menara Kinabalu.
Earlier, Fadillah met with Chief Minister Datuk Seri Hajiji Noor at Menara Kinabalu, along with Safar, Johan, and Sabah State Attorney-General Datuk Brenndon Keith Soh.
On October 17, the Kota Kinabalu High Court ruled that the federal government had unlawfully failed to fulfil Sabah’s right to 40% of the federal net revenue derived from the state for over four decades.
The court also mandated a review within 90 days and instructed both governments to reach a mutual agreement within 180 days on the entitlement for the period from 1974 to 2021.
Fadillah confirmed that the special committee would also discuss the terms of reference for implementing the claim and that these talks would continue with the new state government to be formed following the 17th Sabah State Election on November 29.
“The federal government has already decided not to appeal the 40% claim, so the Cabinet has decided to engage in discussions with the state government. Since we currently have a caretaker government, the priority for now is simply to hold the meeting,” he said.
Polling for the state election will take place on November 29, with early voting on November 25. – November 17, 2025