The Sabah state government has formally petitioned Kuala Lumpur to require all companies operating within the state to separately declare revenue earned in Sabah.
The move is designed to ensure the state receives its full 40% entitlement from federal revenue-sharing arrangements, a critical lever as the state confronts a significant fiscal shortfall.
Sabah is currently facing a projected budget deficit of RM1.57 billion for the current fiscal year.
Planned expenditures total RM7.97 billion, while expected revenues stand at only RM6.4 billion.
The state argues that without transparent, entity-level revenue declarations, it is difficult to verify that the federal government is accurately calculating and transferring the state's share of national income.
This request follows ongoing tensions between the state and federal authorities over resource allocation and subsidy structures.