By Mohd Khairy Abdullah @ Henry
KOTA KINABALU, Malaysia | 18 January 2026 — The United Progressive Kinabalu Organisation (UPKO) has stepped up political pressure on the Federal Government to withdraw its appeal at the Court of Appeal following the grounds of judgment delivered by the Kota Kinabalu High Court on 17 October 2025 in a judicial review concerning Sabah’s 40 per cent revenue entitlement.
UPKO President Datuk Ewon Benedick said the continued appeal runs counter to Malaysia’s stated commitment to federal reform and undermines the credibility of efforts to honour the spirit and substance of the Malaysia Agreement 1963 (MA63).
“This is not a short-term political demand. It is a fundamental test of the integrity of the Malaysian federation,” Ewon said. “The 40 per cent entitlement is part of the founding compact of the country and should not be delayed through prolonged legal manoeuvres.”
Ewon stressed that the restoration of the 40 per cent revenue right is a prerequisite for fiscal justice and balanced regional development in East Malaysia, particularly Sabah, where implementation has been suspended since 1974.
He said the issue goes beyond financial redistribution and directly affects Sabah’s capacity to address structural poverty, strengthen local economic competitiveness, expand entrepreneurship, build industrial capacity, invest in education, and develop human capital in a sustainable manner.
Ewon made the remarks while officiating the launch of UPKO’s 17th Triennial Delegates Conference at the Sabah International Convention Centre (SICC) here on Sunday.
Commenting on post-judgment developments, Ewon — who is also Sabah’s Deputy Chief Minister III and Minister of Industrial Development, Entrepreneurship and Transport — revealed that the second meeting of the Federal–State senior officials committee, scheduled for December 2025, was postponed.
“Sabah’s position is clear and consistent: the appeal should be withdrawn. The postponement of this meeting only delays a substantive resolution long demanded by the people of Sabah,” he said, adding that the reasons for the postponement should be explained by the Federal Government.
As Member of Parliament for Penampang, Ewon said he would raise the matter in Parliament and reiterate UPKO’s position that the appeal should be dropped, in line with constitutional reform and the strengthening of federal–state relations.
Ewon acknowledged that Sabah has experienced significant development since the formation of Malaysia in 1963 and welcomed the resolution of 13 issues related to Sabah and Sarawak’s rights under MA63, achieved through constructive engagement between the Federal and State governments.
However, he underscored that revenue sharing remains a critical unresolved structural failure.
“The suspension of the 40 per cent revenue return to Sabah since 1974 represents a persistent justice gap. Until this is resolved, the MA63 agenda cannot be considered complete,” he said.
Ewon added that UPKO will continue to stand with the people of Sabah across multiple platforms — governmental, political, legal, academic, activist and public discourse — to ensure a conclusive settlement of the 40 per cent entitlement.
He also noted that UPKO’s participation in the Federal Government from December 2022 until his decision to resign from the Federal Cabinet has clearly recorded the party’s principled and consistent stance.
“Our presence in government was never meant to normalise the delay of rights, but to demand their implementation,” he said.
