Kota Kinabalu (May 15) - Parti Kerjasama Anak Negeri (Anak Negeri) has called for stronger unity among Sabah leaders and stakeholders in pursuing the state’s constitutional right to receive 40% of the net federal revenue derived from Sabah.
Its president, Datuk Henrynus Amin, said recent court developments involving the Sabah Law Society (SLS) have significantly strengthened Sabah’s legal standing in the long-standing revenue dispute. According to him, the outcome has placed greater pressure on the Federal Government to work toward a meaningful resolution on the matter.
Henrynus said the party recognises that the Federal Government has the right to continue pursuing legal avenues, including appeals and applications for a stay of execution, as part of the normal judicial process. He noted that the federal administration under Prime Minister Datuk Seri Anwar Ibrahim would require time to verify and compile the necessary financial data before making a final decision.
At the same time, he expressed confidence that the current Federal Government provides Sabah with one of the strongest opportunities yet to resolve the 40% revenue entitlement issue. He also acknowledged the position taken by Chief Minister Datuk Seri Hajiji Noor that Sabah’s demands must take into account the Federal Government’s actual fiscal capabilities.
Henrynus revealed that he recently held discussions with Datuk Roger Chin, Nominated Assemblyman and former Sabah Law Society president, regarding the party’s proposed approach to resolving the issue. During the meeting, he argued that while the courts may continue determining arrears owed between 1974 and 2021, payments covering the period from 2022 onward should not face further delays.
To address both Sabah’s demands and federal financial limitations, Anak Negeri has proposed what it described as a “Two-Tier Payment Formula.”
Under the proposal, 50% of Sabah’s entitlement would be paid directly in cash grants to the state government to support immediate development needs. The remaining 50% would be structured as a Federal Service Credit, which would function as recognised federal debt to Sabah and later be converted into annual federal allocations.
Henrynus said the approach was designed to reduce pressure on federal finances by avoiding a large lump-sum payout while still ensuring Sabah receives its constitutional entitlement.
He also stressed that safeguards must be attached to the Federal Service Credit mechanism. Among the key conditions proposed is that any allocation provided under the arrangement should not be returned to the Federal Government if projects or spending are not fully implemented within the same fiscal year.
In addition, he said Sabah must retain full authority in determining how the allocations are spent and prioritised, without federal interference in implementation decisions.
Despite the ongoing legal proceedings, Anak Negeri believes the issue can be resolved within months rather than years. Henrynus said the momentum created by the Sabah Law Society’s court success should be fully utilised to secure a lasting solution.
He described the matter as one involving Sabah’s constitutional rights and said the proposed formula could offer a balanced path forward that takes into account both Sabah’s entitlement and federal fiscal realities.
The push for Sabah’s 40% net revenue entitlement carries major implications for Sabahans, particularly in terms of development funding, infrastructure, healthcare, education and rural development. Additional financial resources flowing directly to the state government could strengthen Sabah’s ability to address long-standing issues such as road connectivity, water supply, electricity access and economic opportunities in rural districts.
The proposed Two-Tier Payment Formula could also allow Sabah to receive financial benefits sooner while reducing delays linked to prolonged legal proceedings. For many Sabahans, the issue is viewed not only as a financial matter, but also as a question of constitutional rights, state autonomy and equitable development within the federation.