Kota Kinabalu: Sabah needs a trust fund to keep and manage Federal Government allocations to ensure the State’s continuous development, said State Finance Minister Datuk Seri Masidi Manjun.
Welcoming the RM6.5 billion development allocation for Sabah in Budget 2023 unveiled by Prime Minister Datuk Seri Anwar Ibrahim at the Dewan Rakyat on Friday, he said the focus should be on efficiency in managing the allocation.
“Sometimes, we are given billions of ringgit for development but the allocation cannot be fully used due to bureaucracy which causes reimbursements and project implementations to be delayed.
“As the State Finance Minister, I think it is more important to uphold efficiency of government agencies at the federal and state in managing the fund.
“For instance, if Sabah is given RM5 billion this year, but what we can use is probably only RM3 billion. Next year, the allocation is being used to complete last year's project, so there will be no new projects.
“But if we put that money into a development trust fund, whether the year has ended or not, it still can be used for projects,” he said after presenting more than 500 scrolls to National Dual Skills System SLDN graduates at the Sabah International Convention Centre, here, Saturday.
Masidi also commented on the status of Sabah's manufacturing sector, saying the State has yet to be able to fulfil the requirements to attract investment.
“Roads, electricity and water supply are basic infrastructure. Whether we like it or not, whether we are ashamed or not, these are the things that we lack.
“From a business perspective, the State is located far away from Port Klang which is the main export port.
“Therefore, if manufacturing is done in Sabah, they (investors) would have to factor in the transport cost from Kota Kinabalu Port to Port Klang, thus incurring additional expenses for their goods.
“We are in a Catch-22 situation whereby if we don't do it, we have no job opportunities but if we do, those products might not be able to be sold due to high costs,” he said.
He said while he remained optimistic that other sectors will grow, the State needs to focus on economically viable sectors.
On the announcement of a poverty eradication programme using oil and gas revenue, Masidi said the State had spent RM126 million to build low-cost houses under the Sabah Maju Jaya housing initiative.
“In the (State) budget, the consolidated revenues come from all sources, including oil and gas. Some of our revenue is meant for development, administration and some revenue meant for poverty eradication.
“It is not a question of whether there are (poverty eradication) programmes, but more about the effectiveness of implementation. It is undeniable that Sabah is one of the states with the most hardcore poor people,” he added.
In 2021, there were 41,490 hardcore poor people recorded in Sabah.
Masidi also lauded the tax on vape products because it would lead to regulations on its sale and use.
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