THE ongoing negotiation on Sabah’s 40% revenue entitlement must be allowed to proceed with the understanding that it is not just a Sabah issue but a Malaysian problem, said state Finance Minister Datuk Seri Masidi Manjun.
He was referring to discussions under the Malaysia Agreement 1963 Implementation Action Council (MTPMA63).
Masidi said that Sabah’s demands are based on constitutional provisions and a longstanding agreement with the federal government and therefore, should be resolved thoroughly and not in haste.
“This is not just about resolving Sabah’s issues. It’s about addressing a constitutional matter that affects Malaysia as a whole,” he said during the state assembly sitting.
Responding to additional questions by Assafal P. Alian (Tungku-Warisan), Masidi said he would take up Assafal’s suggestion to examine a certain clause in the Federal Constitution during the MTPMA63 negotiations.
The ordinance is believed to have contributed to delays in resolving Sabah’s 40% revenue entitlement, said Assafal.
Masidi also highlighted that the state government has included in its proposal, entitlement to dividends paid by Petronas to the federal government for oil operations in Sabah.
Additionally, it underscored revenues generated by companies operating in Sabah but funnelling their profits to their headquarters in Kuala Lumpur.
“For instance, companies listed on Bursa Malaysia with significant operations in Sabah but headquartered in Kuala Lumpur appear to channel their revenues there. These revenues should rightfully be part of Sabah’s entitlement,” he said.
He added that the state government submitted its latest letter on August 26, detailing its claims and proposing staggered payments while awaiting further data validation.
Masidi stressed the importance of practical solutions grounded in mutual understanding.
“We are ready to sit down with the federal government to exchange data and find a resolution. Let’s not look at this as Sabah's problem but as Malaysia’s problem,” he said.
He also called for urgency in resolving the issue, noting that Sabah remains open to discussions to achieve a fair and equitable outcome.
“This is about ensuring that Sabah receives its rightful share under the law and the Constitution. It’s not just a financial matter but about respecting the agreement that built this federation,” he said.
Earlier, Assistant Finance Minister Datuk Julita Majungki noted that Sabah has been forced to rely on estimates for its 40% revenue rights due to the lack of response from Putrajaya regarding the amount of revenue collected from Sabah.
“The state government’s calculations are based on reasonable assumptions and available figures in the absence of complete data from federal authorities,” she said, adding that Sabah remains committed to the original formula outlined in Article 112C of the Federal Constitution. – November 19, 2024
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