In elections held on 29 November 2025, voters in Sabah rejected national parties, including Prime Minister Anwar Ibrahim’s People’s Justice Party (PKR). Local parties won big in a stinging rebuke to decades of neglect by the federal government, which have seen the state consistently ranked as Malaysia’s poorest.
Sabah’s state elections are a test of Anwar’s popularity and that of his coalition partners ahead of the next general elections expected in early 2028. Anwar's Pakatan Harapan (PH) won only one of the seats it contested in Sabah’s 73-seat legislative assembly. Another partner, the Democratic Action Party (DAP), which has strong Chinese support in the Peninsula, saw all eight of its candidates defeated. Once a bold, outspoken party against corruption, a defender of human rights and minority rights, DAP has toned down since it joined Anwar’s ruling Pakatan Harapan (PH) coalition and paid dearly for it.
The incumbent Gabungan Rakyat Sabah (GRS), a coalition of Sabah-based parties, managed to win the largest number of seats, with a haul of 29, to allow its chairman Hajiji Noor to be sworn in as the state’s chief minister for a second term. While Noor is an ally of Anwar’s, the shift to local parties raises concerns for the prime minister.
The opposition Warisan party, led by former chief minister Shafie Apdal, saw its seats increase to 25 from 23.
A month before the elections, Sabah was shaken by a landmark High Court ruling that the federal government had acted unlawfully and beyond its powers under the constitution by failing to honour the state’s 40% share of federal revenue for nearly five decades. The court issued an order directing the federal government to conduct a new revenue review with the Sabah government and to agree on the state’s 40% entitlement for each financial year from 1974 to 2021.
Sabahans were overjoyed that their constitutional rights were finally being upheld. For years, Sabah politicians have called for a return of the state’s entitlement of 40%. In response, Anwar initially indicated he would study the ruling before deciding on an appeal, though he insisted he wasn’t opposed to the 40% revenue element principle. The federal government later decided not to appeal.
State nationalism is at its highest in decades after the 2022 general elections, which saw a hung parliament.
The news did not sit well with Sabah locals and became a major factor in driving voters away from national parties to Sabah-based parties, which are seen as more committed and sincere in fighting for their rights.
Sabah is underdeveloped and suffers from a lack of infrastructure development compared with Peninsular Malaysia. Public services like healthcare in semi-rural and rural areas are inadequate.
In recent years, the states of Sabah and Sarawak on Borneo in eastern Malaysia have been pushing for greater autonomy, as they feel they are treated as lesser partners in the nation’s decision-making process.
State nationalism is at its highest in decades after the 2022 general elections, which saw a hung parliament. Anwar courted parties from Sabah and Sarawak to help form the current ruling coalition. Combined, these states hold 56 seats in the 222-seat parliament.
Sabah’s push for greater ownership of its own affairs is partly driven by neighbouring Sarawak’s success in exerting greater autonomy – especially in managing its economic and natural resources. For example, Sarawak recently launched its own airline, AirBorneo, making it the first state in Malaysia to own an airline.
Sabah’s newfound confidence has implications for the state’s international trade and ties – it now courts foreign investors far more actively rather than leaving its economic fortunes entirely to the federal government. The inaugural Malaysia (Sabah)–China Business Summit in 2024 drew much interest. Resource-rich Sabah is attractive to foreign investors, in particular those from China and South Korea, who have been visiting the state to strengthen economic and trade ties.
In November 2025, several China-based companies formalised cooperation agreements with Sabah partners. They include the Jiangxi Provincial Agricultural International Exchange Association, Fuzhou Rural Revitalization Promotion Association, and the Xingan County Bag Industry Association.
But it is Prime Minister Anwar Ibrahim who needs to be the most attractive suitor to Sabah if he is to retain the support of the state’s parties in the next general election.
With less than two years to go, he has little time to waste.
