Independent Assessment Needed to Determine Sabah’s 40% Entitlement

                         Daniel John Jambun 

Borneo Herald 

4.58PM MYT, 26-10-2025

KOTA KINABALU : The Change Advocate Movement Sabah (CAMOS) today calls for the immediate establishment of an Independent Fiscal Commission to determine and verify the actual amount due to Sabah under its 40% net revenue entitlement as guaranteed by Articles 112C and 112D of the Federal Constitution.

A Constitutional Right, Not a Favour

For more than five decades, Sabah’s 40% entitlement has remained unfulfilled due to the absence of transparent assessment and proper accounting of federal revenues collected from the state.

This has led to widespread confusion and mistrust over claims that the Federal Government “has given more to Sabah than it receives” — an assertion that cannot be verified without a credible, independent mechanism.

CAMOS believes the time has come to end political debate and replace it with facts, figures, and fairness.

Proposal: Sabah Revenue Entitlement Assessment Commission (SREAC)

To ensure transparency and constitutional compliance, CAMOS proposes the formation of a Sabah Revenue Entitlement Assessment Commission (SREAC) — a permanent, independent body jointly established by the Federal and Sabah Governments under Article 112D(3).

Key Functions

Determine and verify the total federal revenue collected from Sabah each year.

Deduct only legitimate federal expenditures incurred for the benefit of Sabah.

Compute the net figure and certify Sabah’s 40% entitlement amount annually.

Publish transparent reports to both the Federal Parliament and the Sabah State Legislative Assembly.

Composition

The Commission should comprise:

1 Chairperson jointly appointed by the Prime Minister and Sabah Chief Minister;

2 Federal representatives (Ministry of Finance and Economic Planning Unit);

2 Sabah representatives (State Ministry of Finance and Economic Planning Unit);

2 Independent experts from professional audit or academic institutions; and

1 civil society observer (e.g. Sabah Law Society or Malaysian Institute of Integrity).

This balanced composition ensures both fiscal credibility and political neutrality.

Transparent Methodology

The assessment process should include:

Access to audited data from the Inland Revenue Board, Customs, Petronas, and other federal agencies operating in Sabah;

Identification of all gross federal revenues derived from the state;

Deduction of only those federal expenditures actually benefiting Sabah;

Application of the 40% formula on the verified net figure; and

Annual public reporting audited by the National Audit Department.

This process will remove ambiguity and allow both governments — and the public — to know exactly what Sabah is constitutionally owed.

Review and Oversight

The Commission’s findings should be binding unless formally disputed within 60 days.

A five-yearly review may be conducted to refine the methodology in line with economic changes.

Reports must be made public within 30 days of completion to ensure transparency and accountability.

The Way Forward

CAMOS urges both the Federal Government and the Sabah State Government to:

Jointly announce the formation of this independent Commission;

Table a Memorandum of Agreement in Parliament and the Sabah State Assembly; and

Allow the Commission to begin data verification within six months.

This is the only credible path to restoring fiscal trust, constitutional integrity, and Sabah’s rightful share under the Malaysia Agreement 1963 framework.

Respecting the Constitution means more than acknowledging Sabah’s rights — it means measuring them, honouring them, and reporting them transparently.

An independent assessor is not a political demand, but a constitutional necessity to ensure that what belongs to Sabah is rightfully returned to Sabah.

Daniel John Jambun

President

Change Advocate Movement Sabah (CAMOS)#~Borneo Herald™