Malaysia’s Court of Appeal Sets Nov. 12 Case Management in Sabah Revenue Case

Malaysia’s Court of Appeal will determine on Nov. 12 when it will deliver its ruling on the federal government’s appeal against parts of a High Court judgment concerning Sabah’s 40% net revenue entitlement for 1974 through 2021. A three-judge panel scheduled the e-Review case management after hearing submissions from the federal government, the Sabah Law Society and the Sabah government.

The federal government is challenging findings that the federal and state governments abused their powers and breached constitutional duties, as well as orders relating to the years without a revenue review, the review process, relief granted and the High Court’s jurisdiction. The Sabah Law Society said the appeal does not dispute the constitutional 40% formula or the requirement for a review under Article 112D.

The federal government argued that the 1970 First Review Order remained in force until a 2022 order replaced it and that payments made from 1974 to 2021 were constitutional. The law society maintained that correspondence and meetings did not amount to the formal constitutional reviews required during that period. Sabah’s government broadly supported the finding that no review had occurred since 1969 but opposed invalidating interim arrangements for 2022 through 2024.