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.
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