KOTA KINABALU: The claim by the care taker Chief Minister that the Sabah government earns RM2.8 billion from the aquaculture industry is another grossly misleading claim because the total Sabah government revenues is only RM4.2 billion. In fact, the State 2020 budget that had imposed new sales tax on exports of fishery commodities estimated that only RM10 million will be collected. After protests by the fishery industry, the government was forced to suspend the tax. The Sabah government must stop churning out confusing statements that can only confuse the business community and investors.
*How was the RM1 billion bond repaid?*
Another serious question concerning the State budget is the repayment of the RM1 billion bond. The care taker Chief Minister, at recent occasions, has repeated his claim in his budget speech made on 15 November 2019 that the Sabah government was “repaying the RM1 billion bond through one bullet payment by the end of 2019.” But the entire 2020 budget did not show from where the government got RM1 billion to pay off any loans. The state budget was less than RM4.2 billion. The only plausible source of funds to repay the RM1 billion bond is the RM4 billion in the state reserves that was carried forward from the 2018 budget left behind by the previous government. If this is the case, then the Finance Ministry must disclose this fact. If not, then there is something fishy about the RM1 billion repayment.
*RM900 million on Covid-19 assistance but where is the money?*
Another money matter of concern is the aid packages amounting to RM910 million that has been touted by the care taker Chief Minister. Where have this RM910 million gone to? How many people have received the assistance and in what form?
*State budget in severe deficit*
The first step in curing the economy is the recognize that there is a problem. Therefore, it is scary that the care taker Chief Minister and his cabinet ministers are in stubborn self-denial of the stark reality of the gloomy economy. More than 300 shops in downtown Kota Kinabalu alone have closed down, excluding the closures in shopping complexes and the suburbs like Inanam, Lintas, Penampang and so on.
Even before the emergence of Covid-19 earlier this year, the Sabah economy has been on a downward spiral. From a high of 8.2% GDP growth in 2017, the Sabah economy fell to a mere 1.5% in 2018 and became stagnant at 0.5% in 2019. This year, the Sabah economy is expected to shrink by 15% to 20%.
The impact on state revenues will be severe because of the consequential drop in land revenues and sales taxes. Lower oil prices and production means that the State income from oil and gas will drop from RM1.7 billion to RM1.1 billion. Similarly, sales taxes from crude palm oil will drop from RM850 million to RM600 million. Tourism taxes is now negligible.
It is time that the Sabah ministers wake up from their slumber and stop denying that Sabah is in serious economic troubles. The people of Sabah deserve a government that recognises that Sabah has a serious problem so that the government can effectively and urgently revive the economy. The trigger happy Warisan leaders who like to pick fights with the Prime Minister and the federal government will only aggravate Sabahans’ sufferings.-
Datuk Yong Teck Lee
Ex-Chief Minister, Ex-Minister of Finance, SAPP President
