Kota Kinabalu: Kuamut Assemblyman Datuk Masiung Banah has called for a more realistic approach to managing the presence of foreigners in Sabah.
“The influx of foreigners into Sabah is not a new problem. It has persisted for more than 50 years, making Sabah the state with the highest recorded non-citizen population in Malaysia,” said Masiung when debating the Head of State Policy Speech on Monday.
Citing the Department of Statistics Malaysia, he stated that there are approximately 1.04 million foreigners in Sabah as of August 2025, with most coming from the Philippines and Indonesia.
He categorized them into four groups: undocumented migrants, war refugees holding IMM13 documents, Kad Burung-Burung and Census Certificates, stateless children, and those who obtained identity cards illegally or through questionable means, often referred to as “IC Project” holders.
Masiung expressed support for the Federal Government’s proposal to issue MyKAS documents to war refugees currently holding IMM13 cards, Kad Burung-Burung, and Census Certificates, as well as to stateless children of foreign parentage born in Sabah but whose country of origin remains unknown.
“Rather than letting them work without valid documents, at least if we give them documents, they can work, their economy improves, and their families are better off,” he said.
He added that having proper documentation could also reduce petty and serious crime linked to economic hardship among this group and allow them to contribute to the state’s economy and pay taxes.
“Sabah’s economy in sectors such as agriculture, construction, plantations, hospitality, and restaurants would collapse if all foreign workers were sent home at once,” he pointed out.
Masiung also proposed several measures to address the issue more effectively:O Tighter border security, particularly at sea entry points in Tawau, Semporna, Sandakan, and Lahad Datu, including the addition of radar assets, patrol boats, and drones.
O Integrity of enforcement personnel. He emphasised that enforcement officers guarding border entry points must have integrity, as he was made to understand that smugglers often bribe officers.
O Mandatory fingerprinting for undocumented migrants to prevent re-entry under new identities after being caught or deported.
O Payment of foreign workers’ salaries through banks to track the actual number of foreign workers in Sabah and ensure transparency.
O More frequent joint enforcement operations, particularly at squatter settlements and worker quarters.
“The presence of foreigners has contributed to squatter problems, crime, and huge losses to the government through the theft of electricity and water supply piped to squatter homes they’ve built,” Masiung said.
“The State and Federal governments should therefore strengthen their cooperation to find the best solution,” he added.
On the Malaysia Agreement 1963 (MA63), Masiung suggested that the Sabah Government formally record its achievements, pointing out that there is a public perception that the current government has done nothing to advance Sabah’s rights under the agreement.
“That is a deception,” he said, explaining that out of the 13 matters under the MA63 to be returned to State control, nine have been achieved under the current Federal Government, led by Prime Minister Datuk Seri Anwar Ibrahim and Chief Minister Datuk Seri Hajiji Noor.
He also highlighted the significant increase in the interim special grant paid to Sabah, which had remained at only around RM25 million per year from independence until 2022.
Under the current leadership, he noted, the grant rose to RM125 million in 2023, RM300 million in 2024, RM600 million in 2025, and RM600 million again in 2026.
However, he acknowledged that he was not satisfied with the RM600 million payment, as what Sabah ultimately seeks is the full 40 percent revenue entitlement under MA63, as agreed when Malaysia was formed.
Regarding the 40 per cent grant claim, Masiung said that while the Federal Court had initially agreed not to appeal the Kota Kinabalu High Court ruling on the judicial review filed by the Sabah Law Society, the Court of Appeal had, in early April, allowed the Federal Government to temporarily suspend the implementation of that ruling.
This news had come as a disappointment to the people of Sabah.
“The Sabah Government should pursue the matter seriously through diplomatic channels and negotiation, including through the Malaysia Agreement Implementation Action Council,” Masiung said.
He acknowledged that it would be impossible for the Federal Government to pay the full 40 percent special grant in cash, but expressed confidence that Sabah’s leaders have strong ties with Putrajaya and could negotiate a fair deal at the table.
