Deputy Premier Datuk Amar Douglas Uggah speaking in the Sarawak Legislative Assembly on Wednesday (Dec 3).
KUCHING: Allegations that the Sarawak government has a deficit or hidden debts are misleading, says Deputy Premier Datuk Amar Douglas Uggah.
He said Sarawak’s financial fundamentals remained strong and were validated by credit rating agencies Moody’s, S&P and RAM.
"Importantly, the state has received 23 consecutive years of clean Auditor-General certification up to 2024, and has established the Sarawak Sovereign Wealth Future Fund to secure long-term fiscal resilience.
"If there truly were 'hidden debts' as alleged by Ahli Yang Berhormat for Padungan, these independent agencies would have reflected such concerns through downgrades.
"They did not, because no such hidden debts exist," he told the Sarawak Legislative Assembly during his winding-up speech on Wednesday (Dec 3).
Uggah was responding to issues raised by Chong Chieng Jen (PH-Padungan) during the debate on the state budget last week.
Chong had asked how much the state government had borrowed to sustain its expenditure as well as the interest charged and annual repayment amount for its loans.
He also said the 2026 state budget did not include RM5.2bil under the alternative funding initiative, which would result in a deficit rather than the estimated surplus of RM144mil.
However, Uggah said Chong had mixed up operating expenditure, development expenditure and alternative funding projects.
He also questioned whether Chong was anti-development, as he had implied that borrowing for development was improper.
"Borrowing for development is a common practice, strategic and responsible, practised by advanced economies such as Japan, South Korea, Singapore and China.
"Delaying infrastructure only increases long-term cost," Uggah said.
During the speech, Chong stood up to object to what he called a "personal attack" and to seek answers to his questions on the state government's loans and repayment amount.
Uggah reiterated that the 2026 state budget would have a RM144mil surplus and that alternative funding was separate from the state development fund.
"This is where you do not understand the way the government operates," he added.
ends
SABAH SWAK
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