Kota Kinabalu: THE strengthening of the ringgit against the US dollar could mean Sabah losing RM600 million in Petronas oil royalties in 2025.
State Finance Minister Datuk Seri Masidi Manjun said the projection was conservative and a worst case scenario.
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“It’s a lot, but our revenue can be topped up from other sources. This would not affect the Government’s assistance to the needy as we have healthy reserves.
“Over 50 per cent of the State’s revenue is from oil, including palm oil, so we cannot be dependent on crude oil alone. That’s why we need to widen our revenue base.
“When the ringgit strengthens, imports become cheaper, so fertiliser and machinery will cost less. On that basis, that is good news for us.
“Oil is traded in US$ but converted to ringgit. It’s a big difference from the previous 4.8 to 4.2 exchange rate against the dollar,” he told reporters, Monday.
On the State Budget to be tabled soon, Masidi said the projected shortfall means the Government must be ready to make adjustments.
“There is no guarantee that we will always have…after many years we have even considered a deficit budget.
“The expenditure for next year could be less than the projected income but then again we have healthy reserves and have no choice but to use it.
“Come what may, we will make sure it is as painless as possible to the ordinary people,” he said.
On the possibility of Barisan Nasional working with Gabungan Rakyat Sabah (GRS) and Pakatan Harapan in the coming state election, he said wait for the election.
“That’s what he says. We don’t know,” Masidi said in response to the statement by BN Chairman Datuk Seri Dr Ahmad Zahid Hamidi on Sunday.
“Twenty-four hours is a long time in politics which is very fluid and dynamic. Today we are still alive but tomorrow, there’s no assurance.
“Now we just have to work in solving state problems rather than spending too much time thinking of politics.
“The best preparation for politics is to do a good job. We are not in a hurry. Let’s work first,” he said.
