GLC

By Kent Lo , 1 March, 2026

THE QUESTION of what constitutes NET REVENUE remains the definitive battleground for Sabah’s fiscal future. As the court-mandated deadline approaches, the conversation has moved far beyond simple tax and duty collection.

Federal negotiators frequently point to high federal spending on schools, hospitals, and security within the state as justification for withholding the special grant. This defense fundamentally misunderstands the constitutional mathematics of the Malaysia Agreement 1963.