[UPDATED] Sabah tables RM4.6 bil budget for 2022

KOTA KINABALU – The Sabah government has proposed RM4.6 billion for its Budget 2022, with a surplus of RM110.68 million. 

Chief Minister Datuk Seri Hajiji Mohd Noor, when tabling the budget themed Ekonomi Pulih, Rakyat Sejahtera during the 16th Sabah Legislative Assembly sitting today, said the state’s economy is expected to grow by 4% to 4.5% next year. 

“The state government will ensure that all high-impact projects listed under the state Budget 2022 will be implemented as soon as possible so we can wholly stimulate economic growth in the state,” he said.

Hajiji announced that Sabah is expected to record its highest revenue of RM4.912 billion this year, and state revenue collection is expected to increase by 9.6% or RM430.67 million in 2021.

This is contributed by the higher prices of crude palm oil and crude petroleum, which recorded gains against forecasts in the 2021 Revenue Estimates.

“The other factor that also contributed to the increase in this year’s revenue was the State Sales Tax for oil and gas products.

“Thus, I would like to express my appreciation to oil and gas companies, especially Petronas, for their commitment to paying taxes,” he said.

However, as crude palm oil and crude petroleum are the main contributors to state revenue and are exposed to global economic and market environment risks, Sarawak projects the 2022 Revenue Estimates to stand at RM4.707 billion.

The allocation for the Sarawak Supply and Development Budget 2022 are from these ministries as follows:

1. Treasury Department

Supply: RM1.824 billion

Development: RM4 million

2. Public Works Ministry 

Supply: RM770.1 million

Development: RM244.97 million

3. Chief Minister’s Department

Supply: RM515.94 million

Development: RM161.59 million

4. Agriculture and Fisheries Ministry

Supply: RM319.01 million

Development: RM111.87 million

5. Science, Technology and Innovation Ministry

Supply: RM206.01 million

Development: RM10.6 million

6. Tourism, Culture and Environment Ministry

Supply: RM113.35 million

Development: RM18.58 million

7. Community Development and People’s Well-being Ministry

Supply: RM122.4 million

Development: RM11.72 million

8. Rural Development Ministry

Supply: RM87.66 million

Development: RM123 million

9. Youth, Culture and Sports Ministry

Supply: RM80.59 million

Development: RM15.3 million

10. Local Government and Housing Ministry

Supply: RM121.22 million

Development: RM13.89 million

11. Industrial Development Ministry

Supply: RM19.91 million  

Development: RM26.05 million

The total supply budget is valued at RM383.04 million while the supply budget not including allocations for ministries is estimated to be worth RM33.73 million.  

A total of RM1.368 billion has been proposed for development expenditure next year, which includes RM741.57 million from the state government and RM626.58 million from the federal government.

The federal government's allocation includes federal reimbursement of RM65.25 million and federal loans of RM561.33 million.

The Sabah government is maintaining the development allocation ceiling approved under the 12th Malaysia Plan at RM4.217 billion, to finance a total of 778 development projects.

Of the total approved projects, 227 projects are continuation projects, and 551 projects are new projects.

The economic sector is still the major recipient of development allocation amounting to RM487.26 million or 66%, followed by the social sector with RM236.86 million or 33% and the general administration sector amounting to RM17.45 million or 2% of the total development allocation for the year 2022.

A total of RM919.18 million will be allocated for the development of the agriculture, industrial and tourism sectors in the state next year. 

Meanwhile, Hajiji announced that Sabah will have a bigger say in oil and gas matters as a Commercial Collaboration Agreement between the state, the federal government, and Petronas will be signed in the near future.

“After a long time of legacy issues related to the Petroleum Development Act 1974 underlying our oil and gas-related issues, God willing, this agreement will bring greater value and meaning to Sabah.

“Sabah will get greater revenue sharing, greater participation and a greater say in oil and gas-related matters,” he said. – The Vibes, December 3, 2021