Armizan said although the case concerning Sabah’s claim is still pending before the Court of Appeal, GRS has maintained a firm stance that the latest review of the revenue entitlement rate under Articles 112C and 112D of the Federal Constitution must be carried out this year.
“We are confident that the federal government will agree to revise the rate with a new increase this year.
“This is in line with the commitment previously expressed by the prime minister, including in the Dewan Rakyat on Nov 13, 2025, when he said the federal government acknowledged Sabah’s constitutional right to the 40% revenue entitlement,” Armizan said in a statement.
He also said the state government under chief minister Hajiji Noor’s leadership would continue utilising established negotiation mechanisms to ensure the revised revenue entitlement rate is implemented this year.
Armizan, who is also the domestic trade and cost of living minister, said the increase in Sabah’s revenue entitlement – from just RM26.7 million annually between 1974 and 2021 to the current RM600 million a year – had already enabled the state government to roll out several new initiatives.
At the initial stage of the increase, he said, the Hajiji administration introduced a number of people-centric initiatives to ensure the benefits could be immediately felt by the rakyat, beginning with vulnerable groups living in poverty.
“Among them is the Rumah Mesra SMJ initiative. From 2022 until April 30, a total of 6,634 homes have been completed and occupied by poor households.
“Meanwhile, the Sentuhan Kasih Rakyat programme, introduced two years ago, has been providing monthly cash assistance to 140,000 heads of poor households across Sabah,” Armizan said.
He said with the expected increase this year, the state government intends to focus on additional initiatives such as upgrading water pipeline networks to address non-revenue water issues and constructing bridges throughout the state, particularly in rural areas.
In April, the Court of Appeal allowed the federal government’s application for a stay of execution on a High Court order regarding Sabah’s entitlement to a 40% share of net federal revenue derived from the state, pending the disposal of an appeal.