Sabah and Sarawak affairs minister Mustapha Sakmud said the first aspect is on finalising the calculation formula based on the federal government’s net revenue derived from Sabah.

This is in line with Articles 112C and 112D of the Federal Constitution, Bernama reported.

He said the second aspect is on the verification of revenue data involving key agencies such as the Inland Revenue Board and the customs department.

The third aspect is to fairly address long-standing unresolved past payments during the “lost years”.

“The fourth aspect is on discussing a phased implementation mechanism to ensure payments can be carried out in an orderly and continuous manner,” he said in a statement.

He said all these showed that negotiations are not static but are moving forward in a structured manner.

“The 40% entitlement claim is Sabah’s absolute right as enshrined in the constitution, not a goodwill grant,” he said.

Mustapha said the exchange of financial data between the federal government and Sabah for the 2007-2025 period has been successfully carried out.

On the status of the Malaysia Agreement 1963, he said the government has so far resolved 13 of the 29 targeted issues through the MA63 Implementation Action Council.

He also said the interim payments are only a temporary solution until a final decision is reached through mutual agreement.

“Any effort to increase the value of the payments is justified as it will help drive infrastructure development for the wellbeing of the people of Sabah,” he said.