Kota Kinabalu: Sabah Federation of Creative Associations (Kreatif Sabah) has proposed that a portion of Sabah’s 40 per cent revenue entitlement be specifically allocated to the development of the State’s arts, culture and creative industries.
Its chairman Chester Pang (pic) said the proposal would enable the relevant ministry to plan and implement more structured creative industry development programmes based on Sabah’s own needs and aspirations.
He made the remarks when commenting on the potential of the arts and creative industry sector following Prime Minister Datuk Seri Anwar Ibrahim’s announcement of a RM1.5 billion interim payment to Sabah at Hongkod Koisaan KDCA last month.
Chester said the long-term solution for developing Sabah’s creative industry comprehensively lies in the return of the State’s 40 per cent revenue entitlement.
He said the mechanism would support the planning and implementation of various creative industry development initiatives without placing additional financial burdens on the Federal Government.
According to Chester, Sabah Finance Minister Datuk Seri Masidi Manjun had stated that combined direct tax collections by the Inland Revenue Board and indirect tax collections by the Royal Malaysian Customs Department in Sabah are estimated at RM7.547 billion for 2025.
He said 40 per cent of the estimated collection would amount to about RM3.019 billion.
Chester added that the estimate does not include revenue from the petroleum sector, collections by the Road Transport Department or revenue collected by other Federal Government agencies in Sabah.
He said allocating just five per cent of the estimated RM3 billion, or about RM150 million, through the relevant ministry would be sufficient to significantly strengthen Sabah’s creative industry ecosystem.
According to him, such funding could create more opportunities for local artists, improve industry competitiveness, attract creative investments and stimulate more sustainable and inclusive growth of Sabah’s creative or orange economy.
Chester said the claim formed part of Sabah’s revenue rights under the Federal Constitution and that Kreatif Sabah would continue supporting the State Government’s efforts to pursue Sabah’s financial rights.
