PUTRAJAYA, 5 November 2026 (The Capital Post) – Muar Member of Parliament Syed Saddiq Syed Abdul Rahman and the Malaysian government have reached an agreement in principle to resolve a legal dispute over the withdrawal of parliamentary allocations for the Muar constituency.
The development was disclosed during proceedings at the Federal Court on Thursday, where the hearing of an appeal involving Syed Saddiq and three Muar voters was postponed to allow both parties to finalise the proposed settlement.
Lawyer Lim Wei Jiet, representing Syed Saddiq and the three voters, informed a three-member Federal Court panel that both sides had agreed in principle to resolve the matter.
Under the proposed settlement, RM500,000 in parliamentary allocations withdrawn in 2023 would be reinstated, alongside approximately RM230,000 allocated for specific projects under the myKHAS programme.
Senior Federal Counsel Ahmad Hanir Hambaly@Arwi, representing the Prime Minister and the government, confirmed the agreement and informed the court that Attorney-General Tan Sri Mohd Dusuki Mokhtar had been briefed on the development.
Both parties requested additional time to finalise the settlement mechanism and provide the court with an update.
Chief Judge of Sabah and Sarawak Datuk Seri Azizah Nawawi, who chaired the panel, subsequently fixed 7 December 2026 for case management.
The panel also comprised Federal Court judges Datuk Mohd Nazlan Mohd Ghazali and Datuk Collin Lawrence Sequerah.
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The legal challenge was initiated by Syed Saddiq and three Muar voters, Najib Abu Nawar, Mohd Bakirudin Abdullah and Muhamad Fadzly Bisri, who sought permission to commence judicial review proceedings over the government’s decision to withdraw constituency allocations.
The dispute involved a remaining RM500,000 from a total RM1.7 million allocation intended for the Muar Parliamentary Service Centre to support welfare programmes, community initiatives and disaster relief.
The applicants also challenged the withdrawal of approvals for projects worth RM230,300 under the myKHAS system and sought restoration of Syed Saddiq’s access to the platform, which manages RM2 million in constituency development funds.
They further contested the government’s refusal to approve or distribute allocations for community development programmes in 2024, alleging that the decisions violated their right to equality under Article 8 of the Federal Constitution.
The High Court dismissed their application for leave to initiate judicial review on 24 December 2024, while the Court of Appeal rejected their subsequent appeal on 27 October 2025.
However, the Federal Court granted permission for a further appeal on 10 March 2026.
The latest agreement in principle could bring the dispute closer to a resolution, subject to both parties finalising the settlement terms and updating the court at the next case management session – The Capital Post
