Kota Kinabalu: A RM4.1 billion budget has been proposed by the State Government for 2018 with a surplus of RM64.89 million – the fourth consecutive surplus budget for Sabah since 2015. Chief Minister Tan Sri Musa Aman announced that the State revenue collection for next year is projected to reach RM4.17 billion. "The 2018 revenue estimates show an increase of 9.2 per cent compared to this year's original revenue estimate," he said, when tabling the 2018 State Budget at the State Legislative Assembly, Friday.
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Themed "Strengthening the Economy, Prospering the People", he said, the Government is confident that Sabah's economy would be strengthened and bring about positive impact to the State's prosperity and people's wellbeing as a whole. Next year, the State's economy is expected to continue to expand with the anticipated strengthening of global trade, more favourable external factors and recovery in commodity prices, he said. "This is further strengthened by vibrant tourism sector, positive momentum in the agriculture, manufacturing as well as oil and gas sector."Based on positive environment and strategic steps taken by the Government, the State's economy is projected to grow 5 to 5.5 per cent in 2018."
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Musa, who is also Finance Minister said, the State's Gross Domestic Product (GDP) recorded an increase from RM59.3 billion in 2011 to RM73.8 billion in 2016 – currently ranked as one of the top five states in Malaysia."Besides that, the State's income per capita has also shown 7.3 per cent increase from RM19,648 in 2011 to RM21,081 in 2016."
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The services sector, he said, was the largest contributor to the State's economy which was 40.8 per cent to the total in 2016. "On the other hand, mining and quarry sector was the second largest contributor to the State's economy. "This sector has recorded a sterling increase in the contribution of the GDP from only RM12 billion in year 2011 to RM21.8 billion in year 2016 mainly attributed by the addition of newly operated oil fields."While agriculture sector still remained as one of the State important sectors which contributed about 20 per cent to the GDP in year 2016. "The State also continues to be the largest producer of crude palm oil in the country. "The export value of palm-based oleo chemicals increased substantially from RM43.2 million in year 2012 to RM554.2 million in year 2016," he said.In terms of external trade, the State's economy continues to register positive trade surplus of about RM10 billion annually. "Last year, RM12.4 billion trade surplus was recorded. Meanwhile for the first half of this year, the State's trade surplus has already reached RM10.6 billion attributed mainly to increase in exports." In the first half of this year, export value of Crude Palm Oil rose by 23.2 per cent to RM6.9 billion while export value of crude petroleum rose by 47.1 per cent to RM10 billion. Musa said, of the RM4.17 billion revenue estimates, RM1.13 billion or 27.1 per cent is tax revenue, RM2.64 billion or 63.5 per cent is non-tax revenue and RM401.5 million or 9.6 per cent is non-revenue receipts. Due to the increase in prices and production of crude oil and natural gas, Sabah has received RM1.25 billion of Petroleum Royalty in year 2017, which exceeded the original estimate of RM985 million. "This is the highest amount of Petroleum Royalty ever received in the State history."For 2018, Petroleum Royalty is expected to increase further to RM1.32 billion, which is 31.6 per cent of the State's revenue," he said. For the State Sales Tax, Crude Palm Oil (CPO) will continue to be the major contributor with a total of RM936 million or 22.5 per cent of the State Revenue.Meanwhile, the State Sales Tax on lottery tickets for 2018 is estimated at RM60 million."In 2018, the State Government will increase tax rate for the sale of betting through slot machines from 10 per cent to 15 per cent. This is in line with the current rate for State Sales Tax on lottery tickets. "The new rate will come into effect on Jan 1, 2018. With this rate review, sales tax on slot machines is estimated to contribute RM20 million in 2018."Stay up-to-date by following Daily Express’s Telegram channel.
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