The territory’s economic outlook is now being shaped in part by a key Court of Appeal ruling that has put on hold a compulsory review of its long-contested 40% allocation from the Federal government. While there is no clear deadline for Putrajaya to address nearly five decades of outstanding payments, Sabah’s government is not hindered from pursuing its Sabah Maju Jaya (SMJ 2.0) plan. While global energy turbulence has driven diesel prices in Peninsular to a record RM6.02 per litre, Sabah’s remains insulated at RM2.15. But for how long? We ask how the state leaders might navigate fiscal uncertainty and global headwinds.

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