Will the Court of Appeal ruling resolve the core constitutional issues?

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The Court of Appeal Ruling Does Not Resolve Core Constitutional Issues in Sabah's Revenue Dispute

The Court of Appeal's decision to grant a stay of execution in the Sabah 40 per cent revenue dispute is a procedural step that does not settle the fundamental constitutional questions at stake. This order effectively pauses the obligations and deadlines previously set by the High Court, preserving the status quo while the appeal is heard. The core of the matter, concerning the interpretation and application of Article 112D of the Federal Constitution regarding revenue sharing, remains to be definitively determined by the appellate court.
Stay Order Suspends High Court Mandates and Deadlines

The Court of Appeal allowed Putrajaya's application for a stay, which temporarily halts the High Court's directives. These directives included initiating negotiations and making payments within a 180-day timeframe. The High Court's original order had imposed a review within three months and an agreement within six months from October 17, 2025. The stay effectively suspends these stringent timelines, preventing immediate financial consequences for the federal government pending the appeal's outcome.
Complexities Justify Special Circumstances for Stay

The appellate court acknowledged "special circumstances" warranting the stay, citing the intricate nature of calculating Sabah's entitlement. This entitlement spans multiple financial years, specifically from 1974 to 2021, a period referred to as the "lost years." The complexity arises from the need to conduct reviews and determine the correct quantum payable across such an extended historical period, which the High Court's imposed timelines might not adequately accommodate.
Substantive Constitutional Questions Remain for Appeal

The judicial review that led to the High Court's findings highlighted a breach of constitutional duty by the federal government. The High Court determined that federal authorities failed to review and remit Sabah's 40 per cent share of net revenue for the "lost years" between 1974 and 2021, with no reviews conducted until 2022. However, the Court of Appeal's stay order does not alter these findings but rather suspends their immediate implementation, leaving the substantive interpretation and implementation of Article 112D of the Federal Constitution as the central issues to be resolved in the ongoing appeal.

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Will the Court of Appeal ruling resolve the core constitutional issues?

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