KOTA KINABALU, Oct 18 — Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the federal government respects the High Court’s landmark decision on Sabah’s 40 per cent revenue entitlement and will carefully study the ruling’s financial implications before deciding on any further action.

His comments come a day after the Kota Kinabalu High Court ruled that Sabah has a constitutional right to 40 per cent of the net revenue derived by the federation from the state. 

The court also ordered the federal and state governments to conduct a new review and reach a settlement on the amount owed.

“We officially respect the decision that has been made by the court, and are with the people of Sabah,” Zahid said today.

However, when asked if the government would heed calls from Sabah Barisan Nasional not to appeal the decision, the coalition’s chairman stated that the matter required careful consideration.

“From the government’s point of view, of course we will examine the decision based on reasonability and financial standing. But we will leave it to the prime minister to bring this matter to the Cabinet for further discussion,” he said.

When asked if the 40 per cent entitlement would be included in BN’s manifesto for the upcoming state election, Zahid said the priority was to ensure Sabah receives what it needs for development. 

“The manifesto will be the basis of the agreement that we will present to the voters in Sabah,” he added.

He stressed that the next state government must focus on resolving long-standing issues related to roads, water, and electricity to make Sabah a developed state.

Zahid also noted that with no single party likely to dominate the state election, political cooperation and shared governance would be inevitable.