Kota Kinabalu: Deputy Chief Minister I Datuk Seri Dr Jeffrey G Kitingan said the Sabah Government must be proactive in claiming the State’s entitlement to 40 per cent of the Federal Government’s revenue derived from Sabah.
“We cannot solely rely on the calculations and interpretations of the Federal Government. Instead, Sabah must develop its own comprehensive proposal, presenting our side of the calculations.
“This is not merely a fiscal exercise but an assertion of our rights and understanding of our State’s unique needs and contributions,” he said in a statement.
He said while the difference in calculations between the Federal and State governments may or may not be significant, the final amount to be repaid to Sabah will hinge on two critical factors - the needs of our State and the financial position of the Federal Government.
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“This dual approach will ensure that the final settlement is not only fair but also reflective of Sabah’s rightful entitlements.
“The 40 per cent revenue share should encompass all income and corporate taxes from all companies conducting business in Sabah.
“This includes major contributors like Petronas, as well as customs duties, revenues from agencies like JPJ, plantation and oil companies and dividends received by the Federal Government from entities such as Petronas,” he said.
He said it is essential to have a comprehensive understanding of these diverse revenue streams to ensure that Sabah’s share is accurately calculated and fairly allocated.
“While there are other revenue entitlements under the Federal Constitution that Sabah should rightfully claim, our current focus is on resolving the issue of the 40 per cent revenue share. This is a critical step towards asserting our rights and ensuring that Sabah receives its due.
“To this end, I propose that the Institute for Development Studies (IDS) take the lead in coordinating all these proposals. IDS should engage in extensive discussions with all relevant stakeholders to ensure a holistic and well-informed approach.
Following these discussions, IDS should prepare a Cabinet Paper for the Sabah Government’s consideration. In my capacity as Deputy Chief Minister, I commit to providing guidance and support to IDS in this vital task,” he said.
Jeffrey said while individuals and political parties , including Members of Parliament such as Datuk Ewon Benedick, are encouraged to speak and make proposals on the 40 per cent, it must also be noted that this is fundamentally a state-to-state matter, a government-to-government discussion. It is not appropriate for individuals, including MPs, to speak unilaterally on behalf of the entire State.
“The Sabah Government is open to suggestions and will consider all proposals on how to resolve this issue. The most viable solutions will be selected for presentation as the State’s official stance.
“Let it be clear that our objective is to ensure that Sabah receives a fair and equitable amount that truly reflects our State’s contributions and needs.
“This effort is not just about securing financial resources; it is about upholding the principles of federalism, fairness and respect for the agreements that have shaped our nation,” he said.
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