Malaysian politician Ewon Benedick announced his resignation from the Cabinet on Saturday (Nov 8), over what he said was “disregard” by the country’s Attorney General’s Chambers (AGC) for Sabah’s constitutional right to 40 per cent of federal revenue derived from the state.
Ewon, who is Malaysia’s Entrepreneur and Cooperatives Development Minister, wrote in a Facebook post that he disagreed with the AGC’s stance and that it would not be right for him to remain in the Cabinet while holding an opposing view.
“The AGC’s approach towards the 40 per cent entitlement during my three years in the federal Cabinet has contradicted my stance as UPKO president,” said Ewon, who is also president of the United Progressive Kinabalu Organisation (UPKO) party.
He decided to resign after reviewing the written judgment by Kota Kinabalu High Court judge Celestina Stuel Galid in the judicial review filed by the Sabah Law Society.
“The position and views expressed by the AGC disregarded the historical foundation of Malaysia’s formation — including the terms and conditions under which Sabah agreed to form the Federation of Malaysia,” Malay Mail quoted him as saying.
“I cannot agree with the position and interpretation taken by the AGC, who serves as the legal adviser to the prime minister and the federal government,” he added.
“It would therefore be highly improper for me to continue serving in the federal Cabinet given the AGC’s position, which I believe will remain unchanged.”
Last month, the Kota Kinabalu High Court ruled that the Malaysian federal government had acted unlawfully by failing to fulfil Sabah’s 40 per cent entitlement for nearly 50 years.
In addition, the court issued a mandamus order, which compels Putrajaya to review the revenue allocation with the Sabah government.
It also ordered that an agreement be reached on Sabah’s 40 per cent share of federal revenue for each financial year from 1974 to 2021, with this process to be completed within 180 days.
The AGC has confirmed that it had received the court’s written judgment and that it would examine its reasoning before deciding on the next course of action.
“The department will conduct a thorough review of the judgment and consider all relevant legal aspects before taking any further action,” the AGC said in a statement on Friday, as reported by the Malay Mail.
Citing UPKO’s constitution, Ewon said one of the party’s principles was to uphold the 1963 Malaysia Treaty and Sabah’s constitutional rights.
He added that UPKO’s fight was rooted in the Cobbold Commission Report, the Inter-Governmental Committee Report, the Malaysia Agreement of 1963, and the Malaysia Act, all of which set the terms for Sabah’s participation in the formation of Malaysia.
The Cobbold Commission was set up to determine whether the people of Sabah and Sarawak backed the proposal to create the federation of Malaysia, which also initially included Singapore. The commission had emphasised that Sabah and Sarawak should be equal partners to Malaya.
The Inter-Governmental Committee Report was made in line with recommendations by the Cobbold Commission when formulating the framework of the federal constitution to include the interests and safeguards of the Borneo states.
The Malaysia Agreement of 1963 was signed by Malaya, Sabah, Sarawak and Singapore, with the intention of forming the federation of Malaysia.
The Malaysia Act 1963 created the state called Malaysia, which is made up of 11 states of the former Federation of Malaya, Sabah, Sarawak and initially, Singapore.
There was a need to respect what was stipulated in these documents, said Ewon, which included the recognition and implementation of Sabah’s entitlement to 40 per cent of federal revenue collected from the state.
Previously, Ewon was part of a group of Pakatan Harapan (PH) elected representatives who filed an originating summons against the federal and Sabah governments in June 2022 over the 40 per cent issue, according to the Malay Mail.
The summons was later withdrawn in September 2023 after PH formed the government.
“As the President of UPKO, I would like to see Sabah’s rights exercised. That’s the principle and the reason I joined politics,” he wrote on Facebook.
Ewon wrote that the AGC should not file an appeal, but instead begin consultations with the Sabah government to implement the 40 per cent entitlement.
The former minister added he would formally inform Malaysian Prime Minister Anwar Ibrahim of his resignation from the Cabinet and call for a special meeting on Monday to discuss the “Sabah First” agenda, which would guide UPKO’s direction.
Ewon thanked Anwar for the opportunity to serve in the Cabinet, which he said had been a platform for him to fight for Sabah’s rights.
Anwar, who was visiting Sabah on Sunday as it prepares to hold elections on Nov 29, did not respond directly when asked about Ewon’s resignation by the media.
“I will be here for the whole day… I will respond later,” he told reporters, as quoted by New Straits Times (NST).
Earlier on Sunday, at an event at the Sabah International Convention Centre, Anwar had said that he allocated more development funds to Sabah than any other prime minister before him.
“In the three years I have been prime minister, I have come to Sabah more often than any of my predecessors… not to seek timber concessions, contracts, or projects; I came to help the people of Sabah,” NST quoted him as saying.
During a morning visit to the Gaya Street Sunday Market in Kota Kinabalu, a man in the crowd could be heard asking the premier about the state’s federal revenue entitlement and “when is the 40 per cent coming?”.
Anwar replied that the federal government has been allocating more funds to the state than it collects in revenue.
“For example, if we collect RM10 billion (US$2.4 billion) in taxes from Sabah, we return RM17 billion in spending — for schools, hospitals, border security and defence,” he said, as quoted by NST.
In a clip of the exchange that has gone viral, the man said that the 40 per cent was meant to be derived from tax revenue and was an entitlement “different” from the RM17 billion allocation. Anwar was heard defending his explanation before the video cut off.
News outlet Free Malaysia Today reported that Ewon had sparked speculation about his Cabinet position after attending a farewell event organised by his ministry’s staff in Putrajaya on Saturday.
During a meeting with the ministry’s staff and agencies last week, Ewon reportedly said: “This may be my last speech as entrepreneur development and cooperatives minister.”
Ewon had previously said that he was prepared to relinquish his post if the federal government appeals the Kota Kinabalu High Court’s decision.
In 2021, UPKO formally joined PH, a move that the party’s secretary-general Nelson Angang described as “timely” for the party to actively strengthen the opposition bloc in its struggle to achieve a progressive Malaysia, NST reported.
Ewon was appointed entrepreneur development and cooperatives minister on Dec 3, 2022, following Anwar’s Cabinet reshuffle. Ewon was later appointed Sabah’s PH chairman on Dec 1, 2024.