Hajiji is welcomed by UPKO leaders and members at the 32nd UPKO Anniversary celebration and 17th UPKO Triennial Delegates Conference at Dewan Hongkod Koisaan, KDCA, tonight.
PENAMPANG: The Sabah Government will continue to pursue its right to a 40 per cent share of federal revenue from Sabah as provided for under the Malaysia Agreement 1963 (MA63) through government-to-government (G2G) negotiations with the Federal Government, said Chief Minister Datuk Seri Haji Hajiji Haji Noor.
He said the 40 per cent entitlement was Sabah’s biggest right under MA63 and is provided for under Articles 112C and 112D of the Federal Constitution.
“I would like to stress that the State Government under my leadership will continue to demand the full implementation of the 40 per cent payment through the Government-to-Government (G2G) negotiation process with the Federal Government because the 40 per cent entitlement is our biggest right under MA63, as also provided for in the Federal Constitution of Malaysia. This right must be fulfilled by the Federal Government,” he said when speaking at the 32nd UPKO Anniversary celebration and the 17th UPKO Triennial Delegates Conference at Dewan Hongkod Koisaan, KDCA, here last night.
Hajiji, who is also the Gabungan Rakyat Sabah (GRS) Chairman, said the State Government’s position would continue to be put forward to the Federal Government, including at the MA63 Technical Committee meeting held in Putrajaya on Aug 3, which was also attended by Deputy Chief Minister III Datuk Ewon Benedick as part of the State Government delegation.
He said 13 claims related to MA63 had been implemented to date, including energy regulation, licensing and deep-sea fishing, recognition of the Public Works Department (JKR) and the Department of Irrigation and Drainage (JPS) under Treasury Instruction 182, the administration of the judiciary in Sabah, administration of Sipadan and Ligitan islands, manpower and the environment.
On the 40 per cent claim, he said although it had yet to be fully implemented, including an appeal by the Federal Government related to the matter at the Court of Appeal, the Sabah Government had accepted interim implementation, which was previously only RM26 million but has now been increased to RM1.5 billion starting this year.
“We welcome the Prime Minister’s decision to increase the amount of this interim payment and we will use the proceeds to build more paved roads in Sabah, construct concrete bridges, improve water and electricity supplies as well as development and welfare agendas for the people of Sabah, such as building more SMJ Houses and implementing the Sentuhan Kasih Rakyat (SYUKUR) Programme.
“In short, whatever we receive from the Federal Government, we will return to the people in various forms of incentives and assistance,” he said.
Meanwhile, Hajiji said the State Government continued to place strong emphasis on financial performance and increasing revenue collection, with collections maintained at RM7 billion annually since 2022 and expected to increase to RM8 billion this year.
He said the State Government had also built economic resilience despite facing various domestic and global challenges, thereby making Sabah a strategic investment destination.
“In 2025 alone, RM7.6 billion in investment in the manufacturing sector was recorded, which was almost 208 per cent compared with 2024,” he said.
Hajiji said all these Government efforts were aimed at building economic prosperity for the people by creating job opportunities for Sabahans, as well as generating spillover economic activities among micro, small and medium enterprises through high-impact investments in Sabah.
He said through strategic cooperation with PETRONAS under the Commercial Collaborative Agreement (CCA), the State Government had also successfully increased its equity participation in the exploration and development of the oil and gas industry in Sabah, while creating opportunities for more Sabah-based companies to participate in the development of the industry.
“For your information, we are in the process of finalising the acquisition of a 40 per cent equity stake in the Floating Liquefied Natural Gas (FLNG) facility project in Sabah, in addition to another 30 per cent stake in two new oil and gas fields off the East Coast. God willing, the agreement for this partnership will be signed in the near future,” he said.
The State Government will also develop new industrial parks, including in Kota Belud, and the Blue Economy Hub in Kudat to further boost investment in the State while increasing domestic economic value-chain activities.
