Grow up YBs, please fight for Sabah’s financial rights
Published on: Sunday, December 12, 2021
By: Datuk John Lo
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May I, with due respect, tell our political leaders, especially those in the opposition, that war for Sabah’s development funds is not with the Sabah Government. They should take aim at inequitable allocation in the annual federal budget and the 12th Malaysia Plan.
Federal Government has given RM5 billion development grant to Sabah out of more than RM300 billion budget for 2022. Add little projects here and there, throw in Pan Borneo which has taken forever, the total federal expenditure in Sabah is peanuts. Do Sabahan YBs know how much is the Federal Government expenditure in Selangor? Why is the Federal Government so keen to spend money on Selangor and very little on Sabah? Cos Selangor is the biological son, Sabah, the adopted son from the slum?
Have our MP and YBs ever wondered this? Our CM, Hajiji has tabled his budget with a surplus of RM110.68m, revenue of RM4.707 billion and expenditure of RM4.596 billion. In in contrast, Selangor’s budget: expenditure is RM2.34 billion, revenue at only RM2.05 billion, a deficit of RM293 million. How is it that Selangor has always had a smaller budget/revenue than Sabah but can have so much economic development, to become the most developed state in Malaysia? All the Sabahan YBs should know why cos the Federal Government has been and will continue to spend tons and tons of money in Selangor and wee-tiny amount in Sabah. How should Sabahan YBs fight for the same treatment from the Federal Government? They should go after the big money for Sabah, don’t waste time questioning on small allocations in Sabah.
All Sabah YBs should send a clear signal that they are united with one common objective in mind, i.e., they are in Parliament to fight for Sabah’s equitable allocation.
Creating a small surplus is wise.
An opposition YB has criticized Hajiji’s creation of a small surplus in the budget. What’s wrong to build up our reserve? It is always wise to accumulate a decent reserve for the really bad day. Having a strong reserve can strengthen Sabah’s hand when dealing with the Federal Government and investors, like Sarawak with its more than RM30 billion plus. With this type of surplus, one can talk confidently and convincingly. A poor state with no surplus has little bargaining power. Who would not look down on a destitute state, always asking for charity, can’t look after its own finance? Always at a disadvantage. We don’t want Sabah to be in this position, always dependent on the Federal Government. We may be recovering and going through a bad time now. Sabah has already dished out a sizeable sum for Covidrelief. Lest it be forgotten, during the 1980s after the Berjaya Government, the then Sabah Government had, with hat in hand, begged for loans from the Federal Government to pay the civil servants. Funds for development was zero. We were receiving crumbs dropped from the Federal table. The economy was stagnating. Sabah went through the worst economic black hole.
So please do not criticise for the sake of criticizing or for just grandstanding in politics. We must plan and save to strengthen our financial position in the long term. The opposition YBs should appreciate Hajiji’s financial wisdom.
Sabah politicians better help Hajiji to fight for equitable funding from Federal Government.
First things first. Political leaders should familiarize themselves with Sabah’s basic economic situation and major economic factors that affect our destiny. Or they will risk showing their ignorance.
Recently an opposition leader asked Hajiji to reduce oil palm sale tax in order to grant financial relief to oil palm plantations in the assembly. How silly and illogical is this —-[a] CPO is and has been for a long time at an all-time high. [b] Many sectors, like tourism have endured great financial difficulties in the pandemic. But this opposition leader has deemed fit to lobby for oil palm plantations when they have enjoyed peak after peak in price. [c] The Federal Government is imposing windfall tax and in Sabah we have an opposition political leader asking for tax reduction for oil palm owners. Ridiculous! [d] The oil palm industry has given Sabah little downstream investment, few employments for Sabahans and minimal multiplier effects. [e] The oil palm plantations are getting more than RM2o billion easily each year. Sabah Government’s share is only a tiny fraction of this total. The Federal Government is getting the giant share in taxes. [f] The oil palm plantations are occupying Sabah’s choicest agriculture land, more than 4 million acres! [g] 90pc or more oil palm plantations are owned by non-Sabahans. Revenue and Profit don’t stay in Sabah. [h] Most silly is this—- the more Sabah gives tax concessions, the more Federal Government will collect in windfall tax. Does this YB want this? Please think carefully before making a statement that can negatively affect Sabah’s economic welfare.
Second thing is that our political leaders should stop their parochial mentality. Stop playing excessive kampong politics, the small boy game for political aggrandisement. Fighting among ourselves will serve best the political “divide and rule” tactics by outsiders. They should know where is the big money, the fountain of funds for Sabah’s development. In short, focus on the national financial perspective and fight for development projects like Selangor.
Please allow me to invite these political leaders to face some realities.
Reality 1. It is in my first para above. Selangor’s revenue of RM2.05 billion is less than 50pc of Sabah’s revenue of RM4.707 billion. Now look at what Selangor is enjoying. It has the best highways, the best buildings, most billionaires, largest manufacturing base, many high pay jobs. In short, Selangor has the best of everything with a budget that is less than 50pc of Sabah. This should wake Sabahan political leaders up that Federal Government has been pouring billions, literally billions into Selangor and hardly any in Sabah. It is Federal money, which Sabah has contributed substantially from our oil and gas and oil palm money that have accelerated Selangor’s impressive development. Had our political leaders known where to fight and don’t waste time fighting each other at state level, Sabah could have the same rate of development.
Reality 2. I invite our political leaders to do some very basic, easy as ABC homework. Stop feeling gratitude that Sabah has been given a grant of a few billion bucks or Pan Borneo. Delve deeper and trace where the Federal Government has been spending most of its annual budget of hundreds of billion. Most of the money have gone to the Klang Valley. Funds for Sabah has been an afterthought, small change in the context of the total budget.
Reality 3. Likewise, I invite them to look at the 12th Malaysia Plan which has started this year up to 2025. Irrespective of any devolution of power back to Sabah, if we don’t fight for our rights for equitable fundings, the next 5 years will see no different from the present sluggish rate of economic growth.
Reality 4. Last and equally important for Sabahan YBs is Federal Government’s economic policy focus. Can Sabah benefit equally like W Malaysian states from Federal Government’s financial, monetary, investment policies? Hardly. How about the huge amount of expenditure spent of promoting investment and tourism? How much has been spent on Sabah? Why so little industry in Sabah when we have so much natural resources? Why our oil and gas are pumped to Sarawak to grow her energy industry. Why Johor and Malacca have zero oil and gas but have a booming oil and gas industry.
There are the ugly truths that Sabahan YBs should direct their fight.
Unite and fight for Sabah, support Hajiji.
I have requested many times and will say again, our political leaders must unite to fight in the national political context for Sabah. The big money, all the instructments for economic growth are in Federal Government’s hand. The GRS government with Hajiji as CM has made some impressive progress in repositioning Sabah’s economic relationship with the Federal Government like the just concluded Commercial Collaboration Agreement with Petronas, greater say in oil and gas and return of authority for deep sea fishing. I understand Hajiji has quite a few more irons in the fire for Sabah. If Sabah’s political leaders can unite and support him, his bargaining position will improve tremendously. If Sabahan leaders fight like cats and dogs, Sabahans will continue to suffer for another 50 years. They can be Sabah’s heroes if they can fight hand in hand with Hajji at the national level.
Grow up, fight for financial justice for Sabah in Putrajaya.
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