Malaysia

Unemployment among major talking points as Sabah moots surplus budget

One rep highlights disparity between state’s contribution to national GDP and poverty level

Updated 3 years ago · Published on 28 Nov 2022 9:22PM

Unemployment among major talking points as Sabah moots surplus budget
Unemployment, costs of living and poverty in Sabah are major talking points for several state assemblymen as the government proposes a surplus budget, which includes plans to eradicate poverty. The World Bank report has listed Sabah as one of the five states in Malaysia where unemployment rates are high, after Sarawak, Kedah, Kelantan and Perlis. – Pixabay pic, November 28, 2022

by Jason Santos

KOTA KINABALU – Unemployment, costs of living and poverty in Sabah were major talking points for several state assemblymen as the government proposed a surplus budget, which included plans to eradicate poverty. 

Bugaya assemblyman Jamil Hamzah also pointed out that the state has been tabling a surplus budget from 2015 until 2023.

But the annual allocations have not resulted in the desired results, he added.

“Reading the Auditor-General report, the same issues and advice were given on the implementation of development projects. 

“This is not only on federal projects but also state projects,” said the Warisan assemblyman, adding that the people have long suffered from the lack of infrastructure developments.

Jamil said this during his state budget debate speech here today.

He also noted that the state has not come out with measures to deal with the rising cost of living and the present inflation rates in Sabah in the state budget. 

A RM5.138 billion budget has been proposed in the state 2023 budget – a surplus of RM130.47 million against projected revenue collection of RM5.258 billion in 2023.

Hassan Gani Pengiran Amir (Sebatik-PN), in raising unemployment and poverty issues, pointed out that Sabah is the sixth largest contributor to the national gross domestic product (GDP). 

But behind the positive report card, Sabah recorded the highest total poverty rates at 25.3% compared to other states in Malaysia, he said.

“Sabah’s GDP recorded an increase to RM78.7 billion in 2021 from RM77.8 billion in 2020.

“The state is the sixth largest contributor to the national GDP with 5.7% in 2021, after Selangor (24.8%), Kuala Lumpur (15.7%), Johor (9.5%), Sarawak (9.5%) and Pulau Pinang (7.1%).

“But on the back of these positive developments, the Sabah socio-economic report in 2021 released by the Statistics Department showed that total poverty in Sabah was the highest in 2020,” he said.

Hassan also quoted a World Bank Report that states the poverty rate in Sabah is the highest in 2020 in Malaysia, which is threefold the average national poverty rate.

“The report also states that close to 36% from those living in poverty in Malaysia are in Sabah,” said Hassan.

The World Bank report also showed Sabah as one of the five states in Malaysia where unemployment rates are high, after Sarawak, Kedah, Kelantan and Perlis. 

The unemployment rate in Sabah hit the highest at 8.8% in the second quarter of 2022 due to the pandemic, he said.

Datuk Raimie Unggi (Tenom-BN) meanwhile said the rising cost of living will have a psychological effect on the people.

“Although money is not everything, stability hinges on basics like food, shelter, jobs, and (an affordable) daily cost of living.

“A person will be affected when they cannot pay debts. They will be stressed and face lack of sleep, a poor appetite and headache. They risk facing chronic mental illnesses like bipolar disorder and schizophrenia,” he said.

On unemployment, Raimie said the worry of every parent is when their children cannot gain employment due to the limited job vacancies available.

He expressed hope that more job opportunities will be available, as Sabah has received the third highest investments in the country. 

Under the 2023 Sabah budget, the state allocated RM212.63 million to the Rural Development Ministry, district and sub-district offices on poverty eradication programmes in an effort to increase household income for the targeted group. 

RM120 million was also allocated for the construction of 1,500 units under the Rumah Mesra SMJ housing scheme. – The Vibes, November 28, 2022

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