KOTA KINABALU – The Sabah government will look into reaping more benefits from public-listed palm oil companies in the state, but at the same maintaining a friendly investment environment, said state Finance Minister Datuk Seri Masidi Manjun.
Masidi (GRS-Karanaan) said it is only realistic that the Sabahans would want the listed companies who are earning money through the palm oil sector on Sabah’s land to also enjoy a return from their profit.
“Yes, we must find ways to broaden our revenue base, because these giant estates are based in Kuala Lumpur, and their taxes are declared in Kuala Lumpur – so what are they paying us
“We don’t get anything.
“Supposedly, we should also benefit from the profit they earn from our lands. I agree with Senallang (Warisan President Datuk Seri Shafie Apdal) that they should do more for the local community.
“People want to make a profit all the time but make a minimal contribution to the community serving them,” he said.
Masidi said this during today’s oral question-and-answer session at the Sabah assembly.
He was responding to Shafie and Calvin Chong’s (Warisan-Elopura) question on the benefits that Sabah receives from listed oil palm companies based in the peninsula that have large palm oil estates in Sabah.
Shafie said other than job opportunities and taxes collected from these companies, there is no spillover – making areas around these estates remain poor and without proper infrastructure facilities.
“Take Sandakan for example – it is (now) a dead town when it used to be a booming area like Hong Kong. There are hundreds of listed companies in Sandakan, but what is the return?
“In Felda Umas Tawau, the nearest township, Tungku is dark, with potholes on the roads, but in the Felda estate, it is bright with good roads,” he said.
Shafie suggested that the Sabah government negotiate with these companies for return such as through the Corporate Social Responsibility programme, for them to give back to the local community through the upgrading of roads, surrounding development, education, and health.
Masidi agrees and said the ministry is open to receiving recommendations to ensure that listed palm oil companies would play a role in giving back to the local community.
But he said the Sabah government must first “repair their own house”, by improving the tax collection system involving palm oil companies which has been problematic.
He said the ministry is short-staffed in the palm oil tax collection section, and the problem will be addressed as it involves a large amount of money – billions of ringgit.
“We recently found that there are RM53.6 million of under-declared tax payments, and we have collected RM 4 million. We provide the chance for companies to pay us back in instalments.
“We (Finance Ministry) are working with the Malaysian Palm Oil Board and Malaysian Anti-Corruption Commission. Believe us, we will be able to collect all the outstanding taxes, and the amount is really high,” he said.
Earlier, the ministry said Sabah has 132 palm oil processing factories and 14 refineries that have provided over 6,000 jobs, with over 2,000 taken by locals. – The Vibes, May 24, 2023
