KUCHING, May 5 — Former state second finance minister Datuk Seri Wong Soon Koh today urged the state government to focus its expenditure on resuscitating the state’s economy and helping businesses recover in the post-Covid-19 era.
He said small-medium enterprises (SMEs) and industries, such as oil palm, timber, agriculture, shipbuilding, and fishery are fundamental to the state’s economy.
“If the state government proceeds to continue carrying out all the commitments as announced by Chief Minister Datuk Patinggi Abang Johari Openg in the state budgets for 2019 and 2020, Sarawak may face financial distress and this will impact us and our future generations,” Wong, who is also the president of the Opposition Parti Sarawak Bersatu (PSB), said in a statement.
He said it is imperative that the government re-examine all projects and shelf or cancel those which are non-critical since there is no sales tax income from oil and gas as well as a projected sharp fall in royalties from oil and gas, palm oil, timber and dividend on state government investments.
He noted that Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapha Mohamad had on April 24 suggested that the federal government had to go back to the drawing board to re-look the planning for the 12th Malaysia Plan (12MP) because of the Covid-19 pandemic and the recent oil price crash.
“Likewise, Sarawak must do the same. The oil and gas sector have suffered such a massive blow which will flow on to have a devastating impact on our state’s economy.
“It is necessary to go back to the drawing board to re-examine, rationalise, and to review all of the state’s development initiatives.
“More importantly, there must be a re-prioritisation exercise to decide what expenditure is critical, what can be put on hold and what ought to be done away with in order not to put excessive strain on the state’s financial resources,” Wong said.
He also questioned the RM2.26 billion allocation under the two special aid packages to help the target groups and SMEs mitigate the impact of Covid-19 pandemic.
He said there is no provision for any Contingency Fund in budget 2020, let alone one which can pay for the aid packages.
“It calls into question as to how the chief minister can appropriate such large funds without the approval of the State Legislative Assembly,” he questioned.
“In any event, the state budgets for 2019 and 2020 have blown out of all proportions due to the non-receipt of the 5 per cent sales tax on oil and gas and lower-income from other revenue.
“There is simply no money for the Contingency Fund, whether for development or for aid,” he said.
