Malaysia

Lawyer rebukes PM for saying RM16 billion for Sabah more than 40% entitlement

Federal allocation not a substitute for special grant, says Roger Chin.

Updated 2 years ago · Published on 01 Jun 2024 10:26AM

Lawyer rebukes PM for saying RM16 billion for Sabah more than 40% entitlement
Former Sabah Law Society president Datuk Roger Chin emphasises that the federal allocation for the state should not be considered a substitute for the special grant, as it was a separate financial arrangement with different implications. – Facebook pic, June 1, 2024.

by Jason Santos

THE prime minister’s assertion that the RM16 billion allocation to Sabah exceeds the 40% net revenue entitlement is misleading, said a senior Sabah lawyer.

Former Sabah Law Society president Datuk Roger Chin emphasised that the allocation should not be considered a substitute for the special grant, as it was a separate financial arrangement with different implications.

“Conflating the allocation and the 40% revenue entitlement not only confuses the public but also detracts from the legitimate demand for financial justice and adherence to the Malaysia Agreement 1963 (MA63),” he said in a statement in Kota Kinabalu today.

Chin pointed out that the increased allocation compared to previous years may appear generous on the surface, but a closer examination reveals that this allocation does not adequately address the fundamental issue of Sabah’s 40% net revenue entitlement under MA63.

He explained that the federal allocations are earmarked for specific operational expenditures within Sabah and are designated for various programs and projects, with any unutilised balance rolled over to the next fiscal year.

“Consequently, these funds do not flow directly into the state’s coffers, where Sabah’s government could exercise autonomy over their use. Instead, they are tightly controlled and subject to federal oversight, limiting Sabah’s ability to address its unique needs and priorities independently,” said Chin.

Chin noted that in recent times, the state has demanded for the federal development funds to be retained in the state through a trust fund, but this has not materialised.

The situation had forced the Sabah government to issue a stern directive to speed up the implementation of federal development projects in Sabah.

In contrast, Chin said the 40% net revenue entitlement under MA63 is a special grant that should be directly transferred to the Sabah government.

He added that this grant represents a share of the revenue generated within the state and is intended to be used at the state’s discretion.

Chin said the grant is a fundamental component of Sabah’s financial autonomy and self-determination, enabling the state to invest in its infrastructure, public services, and development initiatives as it sees fit.

“By not fully honouring this entitlement, the federal government undermines Sabah’s financial independence and its ability to address local challenges effectively,” he said.

According to him, Datuk Seri Anwar Ibrahim’s remarks at the closing ceremony of the Kaamatan harvest festival, which called for ending “parochial and narrow-minded sentiment” regarding state rights, were troubling.

He said these comments attempt to trivialise the genuine concerns of the people of Sabah regarding financial entitlements and self-government.

“The sentiment for greater autonomy and fair revenue sharing is not parochial; it is a fundamental aspect of the federal relationship outlined in MA63. Dismissing these concerns as mere noise undermines the legitimacy of Sabah’s aspirations and the historical agreements that form the basis of Malaysia’s federation,” he stated. – June 1, 2024.

Related News

Opinion / 2w

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

Malaysia / 3w

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

Events / 3w

Sarawak and Sabah play key roles in weathering climate change

Malaysia / 1mth

Address security concerns and let concert proceed – former Sabah CM

Malaysia / 1mth

A message from our publisher and chairman

Malaysia / 1mth

Sabah leaders condemn priest and nun joke at UMNO PAU

Spotlight

Off beat

Paya Terubong landslide: MBPP submits draft report

By Ian McIntyre

Malaysia

Bersatu, Muda sign CSA with Madani govt to back Budget 2027

By Alfian Z.M. Tahir

Malaysia

Syndicate using AI-generated 'Datuk' woman to deceive public

Malaysia

MIPP withdraws from Melaka polls after failed negotiations with PN

Malaysia

Thirteen suspended Bersatu MPs may be excluded from MADANI government deal

Malaysia

Selangor Sultan urges scholars to speak truth, leaders to respect constructive criticism

Malaysia

691 teachers flagged for immediate psychological intervention, says Fadhlina

By Alfian Z.M. Tahir

You may be interested

Malaysia

7,292 Penang civil servants to receive one-month bonus in December

By Ian McIntyre

Malaysia

Mohd Shuhaily returns to police force from border agency

Malaysia

Govt weighs movement controls for Rohingya refugees, says Zahid

Malaysia

Magnitude 5.9 earthquake strikes Banda Sea

Malaysia

Bersatu, Muda sign CSA with Madani govt to back Budget 2027

By Alfian Z.M. Tahir

Malaysia

MIPP withdraws from Melaka polls after failed negotiations with PN

Malaysia

Bursa urged to turn more local firms into regional players, create high-skilled jobs

Malaysia

Inflation eases to 1.8% but rising oil and producer costs pose risks