KOTA KINABALU: Budget 2027 should mark a fairer distribution of federal development funding for Sabah and Sarawak to overcome disparities with Peninsular Malaysia, says Keningau MP Datuk Seri Dr Jeffrey Kitingan.
The Sabah STAR president said that Budget 2027 should be aimed at correcting regional imbalances as it was a matter of Constitutional responsibility and fairness for a prosperous and stable Malaysia.
Kitingan said the Federal Government must use Budget 2027 as the starting point to correct the development imbalances as, for decades, federal development allocations have remained heavily Peninsular Malaysia-centric, with approximately 86%-87% of the allocation.
“Sabah and Sarawak together receive only between 12%-15% annually,” he said, adding that Sabah was at least 30 to 40 years behind Peninsular Malaysia in terms of development.
The allocation formula over the years does not reflect the vast geographical size, infrastructure needs, development backwardness and backlog and economic potential of Sabah and Sarawak, Kitingan said in a statement Tuesday (Sept 22).
He urged the federal government to stop treating Sabah and Sarawak as merely one unit each compared to Malaya with 11 states as 11 units.
“Such an approach ignores the special constitutional position of the Bornean states and the circumstances under which Malaysia was formed in 1963,” he added.
He said Sabah previously had five Residencies (administrative regions) with some 30 districts and sub-districts, some of which were larger than states in Peninsular Malaysia.
“For example, the Keningau constituency is larger than the combined states of Penang, Malacca and Perlis.
“Sabah remains the poorest State in Malaysia with eight of the country’s 10 poorest districts located in the state,” he added.
Kitingan, who is also Tambunan assemblyman, said Sabah’s gross domestic product (GDP) per capita is less than half of the national average with little done to uplift rural poverty and it lacked basic amenities with many still relying on uphill gravity-fed untreated water.
“These realities demonstrate that the existing development allocation formula has failed to close the regional development gap,” he added.
Kitingan said Sabah and Sarawak must receive a fairer and more equitable share of Federal development funds that should correspond with their geographical size, population, development needs, infrastructure deficit and contributions to the national economy.
This is necessary to enable both Bornean states to develop according to their true potential and catch up with the more advanced states in Peninsular Malayasia, he said.
He proposed that Sabah’s constitutional entitlement of 40% of the net revenue derived by the Federal Government from Sabah be calculated and paid from 2026 onwards.
“As for the entitlement for the 'lost years' from 1974 to 2021, it can be discussed and negotiated separately between the Federal and Sabah Governments,” he added.
“Materialising this payment would not only fulfil a constitutional obligation but also provide Sabah with the financial resources needed to improve essential infrastructure, eradicate poverty, stimulate economic growth and uplift the overall well-being of its people,” he said.
“The immediate priority must be to stop the continuing accumulation of unpaid entitlements and establish a clear and transparent mechanism for the proper calculation and payment of Sabah’s 40% entitlement moving forward,” he said.
