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Upcoming Sabah State Election 2025: A Referendum on Autonomy and Development

Upcoming Sabah State Election 2025: A Referendum on Autonomy and Development

Shafie Apdal leads the main opposition party, Warisan (left). The ruling GRS coalition is led by Hajiji Noor (right). Image Source: Hari Anggara (left), TheVibes(right)

Sabah is preparing for a pivotal state election. While the date of the election has yet to be announced by the Chief Minister of Sabah, the referendum must be held no later than December 7th 2025.

As Sabah grapples with longstanding challenges in underdeveloped infrastructure and complex federal-state relations, the election outcome will significantly influence its trajectory in the coming years.

Autonomy and the Wealth of Sabah

At the heart of the election is Sabah’s quest to assert its rights under the Malaysia Agreement 1963 (MA63), a historic accord granting Sabah and Sarawak special autonomy within the Malaysian federation.

Sabah’s calls for greater control over immigration policies and a rightful share of revenue from its abundant natural resources reflect ongoing frustrations that these promises have not been fully realized.

In particular, the demand for a 40% return of net revenue from Sabah’s resources remains a critical issue, though efforts are currently underway via a joint technical committee between Sabah and the federal government to explore how this could be implemented in a fiscally responsible manner. Indeed, there are concerns within the federal government that meeting this demand could strain national finances and potentially prompt other states to seek similar revenue-sharing arrangements, complicating Malaysia’s fiscal landscape.

Demands for a 40% return of net revenue from Sabah’s resources remains a critical issue.

Thus far, Prime Minister Anwar Ibrahim’s administration has significantly increased development funding for Sabah, allocating RM6.7 billion in the 2025 federal budget—the highest among all states—aimed at improving infrastructure including highways, airports, schools, and healthcare facilities. Anwar has emphasized transparency and the efficient delivery of essential infrastructure over other large scale projects to address critical issues such as the now infamous water shortages experienced in Sabah—not least in facilities like the state’s Universiti Malaysia Sabah.

Anwar has allocated RM6.7 billion to Sabah in the 2025 federal budget—the highest among all states.

The relationship between Anwar’s federal government and Sabah is reinforced by the support of Gabungan Rakyat Sabah (GRS), whose federal lawmakers played a key role in enabling Anwar to form a government following the 2022 general election.

Although GRS is a Sabah-based coalition focused on state-level issues, its presence in the federal parliament gives Sabah greater leverage in national policymaking, particularly in collaborative and occasionally tense negotiations with the federal government over MA63 and regional autonomy.

The GRS, led by Chief Minister Hajiji Noor, currently holds a comfortable majority in the state legislative assembly. The coalition, which includes local parties such as GAGASAN, Parti Bersatu Sabah (PBS), and STAR, has prioritized pragmatic governance and emphasized strong cooperation with the federal government.

GRS lawmakers played a key role in enabling Anwar to form a government following the 2022 general election.

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Sabah has a tradition of coalition governance, where no one party achieves a majority. The previous state election in 2020 saw a transition of power, with Warisan handing control over to the GRS coalition. Image Source: Derkommander0916, Wikipedia.

The Opposition and Awkward Sulu Allegations

Opposition to the GRS coalition is primarily led by Parti Warisan Sabah (Warisan), under the leadership of Datuk Seri Mohd Shafie Apdal.

Warisan advocates a strong “Sabah First” approach, emphasizing the restoration of Sabah’s rights and greater state autonomy on a more confrontational model with the federal government.

Apdal previously served as Sabah’s Chief Minister following a 2018 election, during which Warisan formed a coalition with the DAP, PKR, and UPKO. The collapse of this coalition ended his state administration in 2020.

This time, Shafie has reiterated the party’s decision to approach the election independently, declining alliances with other parties. Specifically, the party intends to contest all 73 state assembly seats. While Warisan’s platform resonates with many voters frustrated by federal dominance, the party’s influence has been challenged by the incumbent’s majority and growing federal support for Sabah’s development.

Warisan intends to contest all 73 state assembly seats independently.

It is also noteworthy that Warisan’s leader, Shafie Apdal, has faced allegations relating to ties with the purported heirs of the Sulu Sultanate—who claim parts of eastern Sabah in an ongoing territorial dispute as leverage to push Malaysia to pay nearly $15 billion USD.

Shafie has consistently denied any involvement in the 2019 arbitration proceedings or related claims, and Warisan has publicly positioned itself against the Sulu arbitration. The disputed allegations even prompted the chief legal representatives of the Sulu claimants, Paul Cohen, to publicly deny any collaboration with Sabah’s parties.

Shafie has consistently denied any involvement in the 2019 Sulu arbitration proceedings.

While this dispute is not a primary issue for most voters, it remains an interesting element in the broader narrative concerning Sabah’s sovereignty and challenges with foreign influence.

The Sulu claimants’ case itself is widely regarded across Malaysia as baseless and a threat to national sovereignty. As such, even indirect association with the Sulu heirs—no matter how unsubstantiated—can quickly become politically charged. The episode also reflects broader anxieties in Sabah over external influence, demographic pressures from beyond Malaysia’s borders, and the need for strong, unequivocal positions on territorial integrity.

Core priorities regardless of outcome

While both GRS and Warisan broadly agree on core Sabah-centric priorities—such as greater autonomy under MA63, the return of the 40% revenue entitlement, and firm rejection of the Sulu heirs’ territorial claims—they differ sharply in how they propose to achieve these goals. GRS advocates a cooperative, negotiated approach with the federal government, emphasizing political stability and incremental progress.

Warisan, by contrast, positions itself as a more independent and assertive voice for Sabah, calling for immediate action on longstanding constitutional promises and more redistributive, people-focused policies.

As Sabahans prepare to vote, they will not be choosing between competing visions of Sabah’s future—but between two very different approaches to securing it.

REFERENCES

Borneo Echo Team. (2024, October 18). 2025 budget: Major development plans for Sabah and Sarawak. Borneo Echo. https://borneoecho.com/

Chan, J. (2022, July 21). Shafie says unaware of ex-AG Tommy Thomas’s letter to Sulu heirs. Malay Mail. https://www.malaymail.com/

Channel NewsAsia. (2025, July 16). In focus: Why stakes are high for Anwar, political parties and voters in Sabah state election. Channel NewsAsia. https://www.channelnewsasia.com/

Free Malaysia Today. (2024, September 11). Warisan lodges report over claim Shafie ‘friendly’ with Sulu heirs. Free Malaysia Today. https://www.freemalaysiatoday.com/

Free Malaysia Today. (2024, September 15). Sulu Sultanate descendants deny ties with Shafie Apdal. Free Malaysia Today. https://www.freemalaysiatoday.com/

Lim, J. (2024, October 18). Govt prioritising essential infrastructure over mega projects. The Edge Malaysia. https://theedgemalaysia.com/

Malay Mail. (2025, March 9). ‘Our pact is with the people’: Shafie confirms Warisan to contest Sabah polls independently. Malay Mail. https://www.malaymail.com/

Vanar, M. (2025, August 2). Sabah polls: Warisan to contest all 73 seats in state, confirms Shafie Apdal. The Star. https://www.thestar.com.my/

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