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Malaysian minister Ewon Benedick resigns from Cabinet over Sabah's 40% ruling

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  Published in Politics and Government on Sunday, November 9th 2025 at 2:32 GMT by Channel NewsAsia Singapore
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Sabah’s Political Storm: Ewon Benedict’s Resignation Highlights Ongoing 40% Entitlement Debate

The resignation of Sabah State Minister Ewon Benedict on Monday sent shockwaves through Malaysian politics, exposing the fragility of the state’s autonomy and the persistent controversy over the 40% revenue entitlement that has defined Sabah’s relationship with the federal government for decades. Benedict, who had been a key ally of Premier Hajiji Noor, stepped down after a heated disagreement with the state’s cabinet over the allocation of funds derived from petroleum and other natural resources, a dispute that underscores the unresolved tensions surrounding Sabah’s rights within the Malaysian federation.

A Legacy of 40% Entitlement

The 1976 agreement between the federal government and the Sabah and Sarawak governments allocated 40% of the revenue generated from petroleum and other natural resources to the two states. The clause was intended to compensate for the long‑standing perception that the states had been left out of the early economic boom. Yet, over the years, the 40% entitlement has become a point of contention, especially as federal revenue streams have fluctuated and the cost of public projects has escalated.

According to a statement from the Sabah Ministry of Home Affairs, the entitlement has “never been a fixed figure” and has been subject to periodic renegotiations. Despite this, Sabah’s leaders and many local residents continue to view the 40% share as a legal right that guarantees the state’s share of national wealth. A recent article on Channel NewsAsia linked to the Ministry’s policy brief explained that the entitlement is “enshrined in the 1976 agreement” but has never been formally incorporated into Malaysian law, leaving the exact distribution mechanism open to interpretation.

Ewon Benedict’s Fallout

Ewon Benedict’s resignation was precipitated by a disagreement over how the 40% entitlement funds should be applied to ongoing state projects. Benedict had publicly argued that the funds should be directed toward infrastructure development, particularly in the remote eastern districts, while the federal government was pushing for a larger share of the funds to be used for national security and development projects that did not directly benefit Sabah.

In his resignation letter, which the Sabah Press Agency published, Benedict cited the “inability to find common ground” with the Premier and the cabinet over the allocation of the 40% entitlement. “My commitment to Sabah’s development is unwavering,” he wrote. “However, I can no longer serve in a cabinet where the state's rightful share is compromised for short‑term national interests.” The resignation has forced the Premier to call an emergency cabinet meeting, where he emphasized the importance of maintaining a united front in negotiations with Kuala Lumpur.

Political Repercussions

The move has reignited old grievances about Sabah’s marginalisation. Opposition parties, especially the Democratic Action Party (DAP) and the Sabah Heritage Party (SAPP), have seized on the story to criticize the federal government’s handling of the entitlement issue. A press conference held by DAP’s Sabah chairperson, Ng Kun Chan, called for a “transparent review of the 40% entitlement framework” and urged the federal government to honour Sabah’s historic rights.

In contrast, the federal ruling coalition, Pakatan Harapan, has maintained that it is committed to “a fair and balanced distribution” of national resources. A statement from the Minister of Finance highlighted that the federal government has “always sought to ensure that all states receive their due share of revenues” and pledged to “engage with Sabah’s leaders to reach a mutually acceptable resolution.”

The Bigger Picture

The resignation highlights broader challenges facing Sabah’s governance. The state has been grappling with issues such as ethnic diversity, land rights, and the protection of the indigenous “Orang Asli” population. Recent policy decisions, such as the revocation of certain land titles and the introduction of a new state-level tourism tax, have further strained relationships between the state and its populace. A related article linked from Channel NewsAsia’s website discusses the “Orang Asli land rights” and the “recent legal disputes over land use” in the interior districts, indicating that Sabah’s political landscape is not only shaped by fiscal entitlements but also by deep social and cultural divides.

Looking Ahead

Benedict’s departure leaves a vacuum that could either spur a realignment within the cabinet or accelerate a push for greater state autonomy. Premier Hajiji Noor, who has been in power since 2018, announced that he would convene an emergency session of the Sabah State Legislative Assembly to address the funding crisis. He promised to “reaffirm Sabah’s commitment to national unity while safeguarding the state’s legal entitlements.”

The 40% entitlement debate is set to intensify as the next federal budget cycle approaches. Analysts predict that both federal and state leaders will be pressured to clarify the legal status of the entitlement. A policy review by the Sabah Ministry of Home Affairs, slated for the end of the year, could provide a definitive framework that clarifies how the 40% entitlement is to be calculated and distributed.

For Sabah, the stakes are high: a clear resolution could either cement its role as a valued partner in Malaysia’s development or leave it perpetually in a precarious position. The coming months will see intensified negotiations, a potential reshuffling of the cabinet, and a renewed call from Sabah’s leaders and people for a fair share of the nation’s wealth. As Malaysia moves toward a new era of governance, the outcome of this debate will reverberate across the federation, setting a precedent for how states’ rights and national interests can coexist.