Kota Kinabalu: The State Government is committed to implementing various strategic initiatives to ensure the State’s revenue sources remain strong and sustainable, despite facing external policy challenges such as the United States’ tariff increase on imported goods.
State Finance Minister Datuk Seri Masidi Manjun said this move is essential to mitigate the impact on trade flows and demand for products produced in the State.
“As highlighted by Senallang (Datuk Shafie Apdal) and Moyog (Datuk Darell Leiking), the implementation of tariff policies by the US on several imported goods could affect trade flows and the demand for products from Sabah,” he said.
Masidi said his Ministry would continue with six main strategic initiatives, including facilitating the exploration of new revenue in high-potential sectors such as natural resources through collaboration among government agencies.
“This initiative aligns with the recommendation of Senallang for the management of the State revenue to be enhanced through synergy between agencies,” he added.
The State Government is also considering the introduction of new taxes by expanding the scope and types of products under the State Sales Tax (SST) and reviewing the fee structure and royalty rates to ensure they align with the value-added services and revenue potential of the State.
Other measures include reviewing revenue permitted under the Federal Constitution to fully leverage the powers granted to Sabah, as well as optimising revenue collection through a more efficient and transparent digital system.
Masidi also emphasised efforts to improve the management and operations of State-Owned Enterprises (SOEs) and statutory bodies through restructuring, enhanced governance and operational efficiency to generate higher returns for the State.
Responding to Datuk Seri Bung Moktar (Lamag-BN) regarding revenue generated from the new economy, the Minister said so far, direct income from this sector had yet to be realised for State Revenue.
“Nonetheless, the State Government places great importance on the potential of the new economy as a driver for future growth, particularly through blue economy development.
“For this purpose, the State Government, through the SMJ Secretariat, is undertaking various strategic initiatives to ensure that the development of this sector can contribute to the State revenue in a continuous and sustainable manner, including studies on the potential of marine mineral resources and marine biotechnology, as well as the comprehensive formulation of policies and action plans for Sabah Blue Economy.
“This step also reflects the State Government’s ongoing commitment to explore and harness new revenue potentials to strengthen the State’s fiscal position, despite facing challenges in the context of the global economy and trade this year.”
