By Olivia Miwil
KOTA KINABALU: The Sabah government will continue to negotiate and reach an agreement with the federal government over the state's 40 per cent revenue entitlement.
Chief Minister Datuk Seri Hajiji Noor said although the state government opposed the stay application by the federal government for the High Court order over Sabah's 40 per cent net revenue entitlement, they still respect the decision of appellate court to allow the delay of the implementation.
"Notwithstanding the court proceedings, it is hoped that negotiations will proceed in good faith towards reaching an agreement with the federal government.
"This is an ongoing process, and the state government will continue to discuss the matter and seek a solution," he said in a statement.
Hajiji said the stay order granted by the Court of Appeal this morning is procedural in nature and keeps the status quo until the federal government's appeal has been heard.
"lt does not set aside the existing High Court order. While 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 in a statement.
Hajiji added that the federal government did not appeal the October 2025 Kota Kinabalu High Court ruling on Sabah's constitutional right to 40 per cent of net federal revenue collected and Prime Minister Datuk Seri Anwar Ibrahim has pledged to to honour it.
The tentative dates for the hearing of the federal government's appeal are between Oct 27 and 30 this year.
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