Sabah unveils RM5.7bil budget with focus on basic infrastructure

KOTA KINABALU: Sabah unveiled a surplus RM5.701bil budget for next year focussed on addressing the people's key needs, especially basic infrastructure and public amenities.

The proposed budget tabled at the Sabah Assembly Friday (Nov 24) by state Finance Minister Datuk Seri Masidi Manjun also seeks to increase and strengthen the growth of key sectors like agriculture and food security, industry and tourism.

It also hoped to allow human capital development by strengthening knowledge, skills and spiritual values to foster a strong self-identity, said Masidi, tabling his first state budget after being appointed Finance Minister in January.

Masidi said the focus was to address socio-economic gaps and improve the people’s standard of living through various initiatives geared towards inclusivity and equality.

He said basic infrastructure, public amenities, maintenance of roads and slopes, and rehabilitation of rivers in flood-prone areas were among the key areas of focus under the budget.

He said the state kept to a conservative estimate on its revenue amounting to RM5.737bil for next year.

"It is a surplus of RM35.87mil under (state) Budget 2024," he said.

Masidi said that despite the price of the petroleum and commodities having dropped in 2023, the revised revenue for this year was expected to remain above the RM6bil mark, at RM6.419bil.

"The 2024 revenue is expected to decline due to the uncertain geopolitical and economic climate, impacting the price of commodities in the global market," he added.

The bulk of the state's revenue for next year was projected to come from state sales tax from commodities and petroleum amounting to RM2.490bil, with additional revenue from land rent (RM103mil) as well as port and harbour dues (RM42.5mil).

The state also expected to receive non-tax revenue of RM2.372bil comprising petroleum royalty (RM1.3bil), sale of water (RM300mil), interest on cash balance and short-term deposits (RM201mil), land premiums (RM150mil), dividends (RM143.7mil), as well as forest produce royalty and export of timber products (RM133mil).

Some RM729.10mil will come from non-revenue receipts including contributions from the Federal Government.

Masidi said the state would continue with efforts to increase its revenue and planned to implement the State Sales Tax Special Voluntary Disclosure Programme under its 2025 budget for the payment of two products, namely fisheries commodities as well as scrap metal and waste taken out of Sabah.

"I urge the relevant companies to voluntarily step forward for licence registration and declare taxes in compliance with the State Sales Tax Enactment 1998," he added.

He said the state would also enhance enforcement to collect outstanding revenues and address leakages with assistance from the Malaysian Anti-Corruption Commission (MACC), Malaysian Palm Oil Board (MPOB) and Royal Malaysian Customs Department in state sales tax collection.

Masidi also said the state would continue to explore potential new sources of revenue and with its claims to the Federal Government on Special Grants under the Federal Constitution.

Under next year's budget, Sabah civil servants including government contract workers and part-time workers would also receive a special assistance payment of RM2,000 in line with the announcement in the Federal Budget 2024.

Masidi said the first payment of RM1,000 will be paid in January and the second will be made during Hari Raya in April.