KOTA KINABALU: The State Government respects the decision of the Court of Appeal to allow the Federal Government’s application for a stay of the High Court Order to review the special grant for the Lost Years and reach an agreement within 180 days to pay Sabah’s 40 per cent entitlement pending the Federal Government’s appeal.
“Notwithstanding the court proceedings, it is hoped that negotiations will proceed in good faith towards reaching an agreement with the Federal Government,” said Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor.
He said the stay order granted is procedural in nature and keeps the status quo until the Federal Government’s appeal has been heard.
“It does not set aside the existing High Court Orders granted. Whilst the High Court Order to hold a review is for the Lost Years [1974 – 2021], it should not prevent a review for the current years given that the Federal Government does not dispute the 40 per cent formula and the need to hold a review,” he said.
The Chief Minister reiterated the State Government’s opposition to the stay of the High Court order, though he emphasized that the government respects the court’s recent decision.
“This is an ongoing process, and the State Government will continue to discuss the
matter and seek a solution,” he stressed.
Hajiji said the Federal Government did not appeal the October 2025 Kota Kinabalu High Court ruling on Sabah’s Constitutional right to 40% of net federal revenue collected and Prime Minister Anwar Ibrahim has pledged to to honour it.
The tentative dates for the hearing of the Federal Government’s appeal are between
27th October to 30th October 2026 and there is an e-Review fixed on 13th April 2026 to confirm the actual date of hearing.-pr/BNN
