What does Article 112D say Sabah is constitutionally entitled to?

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Article 112D of the Federal Constitution Guarantees Sabah 40 Per Cent of Federal Revenue from the State

Article 112D of the Federal Constitution explicitly states Sabah's constitutional entitlement to receive 40 per cent of the revenue collected by the federal government from the state. This provision has been a cornerstone of the state's financial rights since the formation of Malaysia. Despite this constitutional mandate, the implementation of this entitlement has faced significant historical neglect, with payments effectively ceasing since 1974.
Constitutional Mandate for Revenue Share

The Federal Constitution, specifically Article 112D, outlines the financial arrangements between the federal government and the states. For Sabah, this article stipulates a right to 40 per cent of the revenue derived from the state by the federal government. This is not an arbitrary figure but a constitutionally enshrined agreement that formed part of the foundational conditions for Malaysia's establishment.
Historical Neglect of the Entitlement

The constitutional entitlement established under Article 112D has not been consistently honoured. Records indicate that the federal government has neglected to fulfil this obligation, with the payments effectively ceasing in 1974. This long period of non-compliance has resulted in a significant financial gap for the state, despite its constitutional right to these funds.
Ongoing Pursuit of Finalisation

While interim payments have seen an increase, with recent figures reaching RM600 million, there remains a strong push from Sabah's leadership to have the 40 per cent entitlement formally finalised. This pursuit is driven by the understanding that these payments are a constitutional right, not discretionary aid. Efforts continue to ensure this fundamental aspect of the Malaysia Agreement 1963 is fully implemented and respected.

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What does Article 112D say Sabah is constitutionally entitled to?

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