Malaysia

Record revenues spark dispute over Sabah’s financial legacy

Politicians from both sides of the camp are claiming credit for the financial windfall, each insisting it was their efforts that brought the state to this point.

Updated 1 year ago · Published on 27 Aug 2025 8:04AM

Record revenues spark dispute over Sabah’s financial legacy
The Petroleum Sales Tax was introduced during Shafie's administration on April 1, 2020. - August 27, 2025

by Jason Santos

SABAH has hailed record revenues and rising reserves as proof of its success post Covid-19.

But politicians from both sides of the camp are claiming credit for the financial windfall, each insisting it was their efforts that brought the state to this point.

At the heart of the argument is how much credit belongs to Chief Minister Hajiji Noor’s administration and how much to his predecessor, Warisan president Datuk Seri Mohd Shafie Apdal.

GRS information chief Datuk Joniston Bangkuai told villagers in Kiulu that the state under Hajiji had posted the highest revenue in history, with RM6.9 billion collected in 2022 and reserves climbing to RM8.7 billion.

He also pointed to record constituency allocations of RM4 million per assemblyman, new housing schemes under the Sabah Maju Jaya plan, and landmark deals such as a RM600 million federal grant and the Commercial Collaboration Agreement with Petronas.

“These milestones show that GRS is truly a government that delivers real and measurable results,” Joniston said, crediting political stability and “smart financial management” for the state’s performance.

However, Warisan dismissed the claims as “cheap propaganda,” saying the revenue surge was in fact the result of Shafie’s decision in April 2020 to impose a state sales tax on petroleum products.

Warisan supreme council member Mudi Dubing argued that Hajiji’s government had merely inherited the gains while failing to tackle long-standing problems such as water shortages, damaged roads and frequent floods.

He also claimed constituency allocations and housing figures were too small to be considered achievements and accused GRS of not fighting strongly enough to secure Sabah’s constitutional right to 40% of federal revenue.

Official data shows that state revenue rose sharply after the petroleum sales tax was introduced. In 2020, Sabah collected RM3.59 billion, including RM178 million from petroleum sales tax in its first partial year.

Revenue then climbed to RM5.45 billion in 2021, with petroleum sales tax contributing RM1.47 billion, more than a quarter of the total.

The Petroleum Sales Tax was introduced during Shafie's administration on April 1, 2020.

In 2022, revenues reached RM6.96 billion, with petroleum tax collections peaking at about RM1.9 billion.

In 2023, Sabah’s revenue stood at RM6.97 billion, with annual petroleum sales tax remaining above RM1.4 billion.

The tax has since become the state’s single largest revenue source, consistently contributing more than 20 per cent of annual income.

Still, GRS has moved to expand its coverage to include ammonia, urea and methanol, and from February 2025 a new pricing mechanism will ensure collections are assessed against market averages rather than company invoicing alone.

The revenues from these new sources have yet to make it into the books.

Despite the financial growth, critics say the benefits have yet to reach ordinary Sabahans.

Residents still endure regular water cuts, neglected rural roads and under-equipped hospitals.

Warisan argues record reserves mean little if they are not channelled into improving daily life, while GRS maintains that strong reserves and steady management are essential for long-term development.

“The RM6.9 billion figure is nothing but political cosmetics — people cannot eat numbers or drink reserves,” said Dubing. - August 27, 2025

Mudi and Bangkuai claim Sabah’s achievements were due to their strategies and hard work – August 27, 2025

Related News

Malaysia / 3d

Hajiji urges GRS leaders to put Sabah first, warns against infighting

Opinion / 1w

The Malaysia Agreement 1963: Grievances and expectations in Sabah and Sarawak

Malaysia / 1w

Budget 2027: Sabah, Sarawak to receive RM34.9b in federal allocations next year

Events / 2w

Sarawak and Sabah play key roles in weathering climate change

Malaysia / 3w

Address security concerns and let concert proceed – former Sabah CM

Malaysia / 1mth

A message from our publisher and chairman

Spotlight

Off beat

Afdlin Shauki, family trapped for five hours amid Paris unrest

Malaysia

10 former Negeri Excos file application in Federal Court to challenge revocation of appointments

Malaysia

Perlis MB Abu Bakar suspended from Bersatu for two election terms

Malaysia

Shuhaily says public support gives him strength as he faces two charges

Malaysia

Mohd Shuhaily pleads not guilty to assaulting 2 cops

Places

Penang makes National Geographic list of top 25 cities worldwide to visit

By Ian McIntyre

Malaysia

Two held after 16-year-old girl rescued in suspected sex exploitation case

Malaysia

Takiyuddin blames Bersatu for PN deregistration

Malaysia

Interpol issues Red Notice for Serba Dinamik CEO, Anwar says

You may be interested

Malaysia

Father arrested over suspected rape of 13-year-old daughter in Ranau

Malaysia

PN faces deregistration after RoS rejects its appeal to retain status

Malaysia

RM2.1b rural road overspending triggers contractor payment delays, new project freeze

Malaysia

Man jailed for 9 months after admitting to stealing women's undergarments at laundromat

Malaysia

Lecturer takes RM218k in loans before losing RM269,993 to phone scam

Malaysia

Malaysia Airlines warns green levy could push airfares higher

Malaysia

College student remanded for three days over alleged rape of underage girl

Malaysia

Perlis MB Abu Bakar suspended from Bersatu for two election terms