Ewon Benedick Resigns from Malaysian Cabinet Over Revenue Dispute

Ewon Benedick, Malaysia’s Minister for Entrepreneur and Cooperatives Development, announced his resignation from the Cabinet on November 8, 2023. His decision stems from a disagreement with the Attorney General’s Chambers (AGC) regarding the state’s constitutional entitlement to 40 percent of federal revenue derived from Sabah. Ewon expressed that it was “awkward” to remain in his position while holding a differing view on this critical issue.

In a post on Facebook, Ewon, who also serves as president of the United Progressive Kinabalu Organisation (UPKO), stated that the AGC’s approach over the past three years contradicted his beliefs as a leader within his party. He emphasized that the AGC’s position ignored the historical context surrounding Malaysia’s formation, particularly in relation to Sabah’s rights.

Ewon’s resignation follows a significant ruling by the Kota Kinabalu High Court, which determined that the federal government had unlawfully neglected Sabah’s 40 percent revenue entitlement for nearly five decades. The court issued a mandamus order, mandating the federal government to engage with the Sabah government to address revenue allocation and to finalize an agreement regarding the state’s share from 1974 to 2021 within 180 days.

In response to the court’s ruling, the AGC confirmed it would review the judgment’s reasoning before deciding on the next steps. “The department will conduct a thorough review of the judgment and consider all relevant legal aspects before taking any further action,” the AGC stated.

Ewon cited UPKO’s constitution, which emphasizes upholding the 1963 Malaysia Treaty and safeguarding Sabah’s constitutional rights. He highlighted that UPKO’s advocacy is grounded in pivotal documents like the Cobbold Commission Report and the Inter-Governmental Committee (IGC) Report, both of which were crucial in determining Sabah and Sarawak’s status as equal partners in the Malaysian federation.

The Cobbold Commission was established to assess public support for the formation of Malaysia, ensuring that the interests of Sabah and Sarawak were adequately represented. Ewon reiterated the importance of adhering to the terms set forth in these foundational documents, particularly regarding the recognition of Sabah’s entitlement to federal revenue.

Previously, Ewon was involved in a legal effort alongside other elected representatives from the Pakatan Harapan (PH) coalition, filing a summons against both the federal and Sabah governments concerning the 40 percent issue in June 2022. This summons was withdrawn in September 2023 after PH assumed control of the government.

In his Facebook post, Ewon expressed his desire to see Sabah’s rights acknowledged and implemented. He urged the AGC not to pursue an appeal but rather to engage in consultations with the Sabah government to actualize the 40 percent entitlement.

Ewon plans to formally notify Malaysian Prime Minister Anwar Ibrahim of his resignation and call for a special meeting on the “Sabah First” agenda, which will guide UPKO’s future direction. He conveyed gratitude to Anwar for the opportunity to serve in the Cabinet, which he described as a platform to advocate for Sabah’s rights.

Speculation about Ewon’s position intensified after he attended a farewell event hosted by his ministry staff on November 8. Last week, he hinted at his potential departure during a meeting, stating, “This may be my last speech as entrepreneur development and cooperatives minister.” He had previously indicated his willingness to resign if the federal government chose to appeal the Kota Kinabalu High Court’s decision.

Ewon was appointed to his ministerial role on December 3, 2022, following a cabinet reshuffle by Anwar. He later became the chairman of Sabah’s PH on December 1, 2024, marking a significant role in the opposition’s efforts to enhance the political landscape in Malaysia.