Kota Kinabalu: The BIMP-EAGA Business Council Sabah (BEBC Sabah) is escalating its call for urgent reforms to Sabah’s water management, as Chairman Dr Raymond Alfred voices grave concerns over the prolonged water disruption affecting approximately 50 households in Tenghilan and Tamparuli.
Residents have now endured three consecutive days without water.
“Despite promises of temporary relief via lorry water delivery, the situation remains dire,” Raymond said, highlighting the ineffectiveness of current measures.
He pointed out that the breakdown of the main pump house, requiring five to seven days for repair, is symptomatic of deeper systemic issues.
“This reflects a 30-year pattern of recurring problems, stemming from the Sabah Water Department’s chronic lack of long-term maintenance and emergency planning — a direct consequence of fiscal centralisation.”
In light of the escalating water crisis, BEBC Sabah is pressing the Sabah Government to adopt critical policy recommendations aimed at overhauling the state’s approach to water infrastructure.
Key Policy Recommendations for the New Sabah Government:
- Amend the Financial Procedure Act (1957): Enable unconditional block grants for Sabah and Sarawak, providing the financial flexibility needed for effective water management.
- Establish a Sabah Infrastructure & Utilities Fund: Ensure direct state fund management, allowing for swift and targeted investment in critical infrastructure.
- Create the Sabah Water Regulatory Commission (SWRC): Separate policy, regulatory, and operational functions to enhance accountability and efficiency.
- Implement Transparent Quarterly Progress Reports: Mandate regular reporting by state and federal agencies to ensure transparency and track progress.
- Empower Local SMEs and Cooperatives: Facilitate direct participation in community-level development projects, fostering local ownership and expertise.
Strategic benefits of fiscal autonomy for Sabah:
- Faster, more effective project delivery.
- Greater transparency through state-level auditing and reporting.
- More economic opportunities for local contractors and communities.
- Reduced dependency on federal bureaucracy.
- Restoration of the MA63 principle of equal partnership within Malaysia.
“The ongoing water crisis is a human issue that demands immediate and sustainable solutions,” Raymond said.
“Sabah must regain fiscal autonomy to plan, fund, and manage its water infrastructure responsibly, ensuring no community continues to suffer after decades of neglect.”
Raymond said Sabah’s demands are rooted in the Malaysia Agreement 1963 (MA63), stating, “Sabah is not asking for more than what was promised under MA63.
Fiscal autonomy means empowering the state to manage and deliver development funds directly to the people, cutting through unnecessary federal bureaucracy.”
BEBC Sabah contends that the current system of Conditional Federal Funding is a significant impediment to progress.
Numerous infrastructure projects approved in the Federal Budget are encumbered by conditions that lead to delays, misaligned priorities, and the exclusion of local contractors.
The water crisis in Tuaran, Tamparuli, and other rural areas serves as a stark reminder of how bureaucratic bottlenecks prevent timely solutions.
The Jabatan Air Negeri Sabah (JANS) manages Sabah’s water supply; however, persistent issues such as shortages and low pressure stem from aging infrastructure, limited treatment capacity, and project delays — all of which are rooted in state-level planning and budget constraints.
The BEBC Sabah underscores that the Federal Government’s (Putrajaya) allocations for Sabah come with restrictive conditions.
Funds are managed through federal entities, imposing specific rules, conditions, and approval processes that hinder the State Government’s ability to act swiftly and effectively.
The current process involves multiple stages:
- Stage 1: Budget Announcement - Federal budget lists allocations “for Sabah” (e.g., RM200 million for rural water projects), controlled by the Federal Ministry of Finance (MOF) & Economic Planning Unit (EPU).
- Stage 2: Project Identification - The state submits project proposals (e.g., build a new water plant in Tuaran). JANS or State Ministry proposes, but a federal agency (e.g., KKR, JKR Malaysia) must approve.
- Stage 3: Technical & Financial Approval - Projects undergo federal vetting, often delayed for months, managed by federal-level tender boards and Treasury.
- Stage 4: Fund Disbursement - Funds often go to federal implementing agencies, not directly to Sabah’s Treasury, overseen by MOF, Federal Development Office (Sabah branch).
- Stage 5: Implementation - Federal agencies appoint contractors, often through Peninsular-based tenders, managed by a federal ministry/department (not always local).
This complex process is a major contributor to Sabah’s deteriorating water infrastructure, creating opportunities for mismanagement and delays.
Raymond asserts that this is about restoring Sabahans’ rights and dignity as equal partners in Malaysia, as guaranteed by the Malaysia Agreement 1963 (MA63).
“Sabah is not asking for more than what was promised under MA63.
Fiscal autonomy means empowering the state to manage and deliver development funds directly to the people, cutting through unnecessary federal bureaucracy,” Raymond concluded.
