Hajiji: Negotiations must proceed in good faith despite court granting stay to Putrajaya over 40pct entitlement ruling
by Nancy Lai · Borneo Post OnlineKOTA KINABALU (April 6): The Sabah government respects the Court of Appeal’s decision to allow the federal government’s application for a stay of the High Court Order to review Sabah’s 40 per cent entitlement pending the appeal.
Chief Minister Datuk Seri Panglima Hajiji Noor said the stay order granted is procedural in nature and keeps the status quo until the federal government’s appeal has been heard.
“Notwithstanding the court proceedings, it is hoped that negotiations will proceed in good faith towards reaching an agreement with the federal government,” he said in a statement.
“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.”
The Chief Minister reiterated the state government’s opposition to the stay of the High Court order, though he emphasised 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 added 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 Anwar Ibrahim has pledged to honour it.
The hearing of the federal government’s appeal will tentatively be from Oct 27, 2026 to Oct 30, 2026 and there is an e-Review fixed on 13th April 2026 to confirm the actual date of hearing.