TAWAU: Sabah’s claim of 40 per cent net revenue has yet to be finalised as the review process covering various related aspects, including payment formulas, technical issues and negotiations between the Federal and State Governments remains ongoing.
Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud said evaluating the full value of the net revenue claim also takes into account the Federal Government’s financial capacity, based on the country’s current fiscal position.
“The full value has not yet been determined, although it cannot be denied that certain quarters have requested for calculations to be made based on tax collection figures from the Inland Revenue Board (LHDN) and the Royal Malaysian Customs Department (JKDM),” he said.
Mustapha said this when asked about the latest status regarding Sabah’s 40pc net revenue claim and its connection to the interim special grant allocation of RM1.5 billion for the State, during a press conference at the Tawau Sports Complex (KST), here, Sunday.
According to him, although both matters involve distinct scenarios, the RM1.5 billion allocation is to some extent linked to Sabah’s net revenue claim, as it was also negotiated within the Malaysia Agreement 1963 Implementation Action Council (MTPPM63).
“The RM1.5 billion is indeed connected to Sabah’s 40pc net revenue claim, but that is a temporary payment amount because the determination of the 40pc claim is not yet fully resolved and remains listed among the matters under negotiation,” he said.
He said the 40pc claim factors in negotiations conducted between the Federal and State Governments through MTPPM63, as the Council’s existence also focuses on the same matters given consideration under Sabah’s net revenue claim.
Elaborating further, he said any final decision on the payment amount for the 40pc claim will require mutual agreement between the Federal and State Governments through a series of ongoing negotiations between both parties.
“However, it must also be acknowledged that we are currently facing a crisis resulting from the war involving Iraq, the United States and Israel, which impacts the nation’s capacity, such as bearing fuel subsidy costs, which have escalated from RM15 billion in last year’s budget to RM40 billion.
“We are also confronting various challenges, particularly global crises that affect our capability to provide RM1.5 billion to Sabah as an interim special grant; however, this amount actually represents a significant increase compared to the efforts of previous governments,” he said.
He added that recent developments also demand that the Federal Government prioritise the overall well-being of the people in its decision-making, including ensuring an effective targeted subsidy mechanism is implemented to address the burden of living costs faced by the public.
During his visit to Tawau, Mustapha also spent time presenting humanitarian aid to victims affected by the recent fire at Lorong Haji Salleh Batu 2 Jalan Apas, who are currently housed at the Temporary Evacuation Centre (PPS) at KST.
He said next year’s allocation for the National Disaster Management Agency (Nadma) has been increased to RM260 million, which includes raising the home repair assistance value from RM5,000 to RM10,000 for heads of households affected by fires.
