Kota Kinabalu: The Federal Government should return oil and gas ownership rights to Sabah and include Sarawak, Terengganu and Kelantan, rather than just give five per cent royalty yearly, according to Keningau Member of Parliament Datuk Dr. Jeffrey Kitingan.
Under the Petroleum Development Act of 1976, all gas and oil deposits in the oil producing states belong to Petronas with the relevant states receiving just 5pc as royalty, although they received 12pc previously from Shell.
Anwar also urged the Madani government to establish a task force to study and examine proposals to make Sabah a tax-free state.
“This will enable Sabah to replace Hong Kong and Singapore as a ‘tourist shopping haven’ hub along with Tourism Theme Parks with a side casino that attracts family tourism from all over the world,” he said, during parliamentary debate, Tuesday.
SPONSORED CONTENT Daily Express members: Enjoy 1 for 1 signature cocktails and more at Hyatt Centric Kota Kinabalu Kota Kinabalu: DAILY EXPRESS is partnering with Hyatt Centric Kota Kinabalu to offer an exclusive deal for our members. Read more Further, he said, to stimulate Sabah’s economy, the Government should, among others, allocate sufficient funds for the construction of the Pan-Borneo Highway as soon as possible as well as declare Sepanggar Kota Kinabalu Port as the “Second National Load Centre”.
“Let the Sabah and Sarawak governments decide on their own their future growth and destiny with their own policies including tax incentives and at the same time generate economy and revenue that can enrich the federal government,” he said.
Jeffrey said despite the higher allocation for Sabah under the 2024 national budget, the Madani government’s treatment towards Sabah and Sarawak appears the same as previous governments.
He said Sabah was allocated RM6.6 billion and Sarawak RM5.8 billion, amounting to RM12.4 billion out of a total of RM90.1 billion, which is only 13.76 per cent for Sabah and Sarawak while Malaya got 86.24 per cent or RM77.7 billion.
“The distribution of development allocations of RM12.4 billion or only 13.76 per cent shows the Madani government’s treatment of the same as previous governments marginalising Sabah and Sarawak. This will not help develop Sabah Sarawak.
“People in Borneo urged such distribution be changed so that it is fairer and more meaningful to Sabah and Sarawak which is backward, poor but has great potential,”
Jeffrey said Sabah and Sarawak are backward in many aspects and cited complaints and grievances that were delivered to the Agong and Raja Permaisuri Agong Queen during their recent Borneo tour.
Therefore, any distribution that is less than the 50:25:25 ratio will not allow Sabah and Sarawak to reduce the gap with Malaya.
“For instance, from RM90.1 billion, if it is less than RM45 billion for Sabah Sarawak, it will only add to the disappointment of the people of Sabah and Sarawak,” he said.
Jeffrey, however, congratulated the Prime Minister cum Minister of Finance on the presentation of the largest Budget 2024 which is RM393.8 billion or RM5.8 billion more than in 2023.
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