KOTA KINABALU – Sabah’s call to channel the unused federal funds allocated for the state’s development to a trust fund requires study as the monies are regulated by the law, said Economy Minister Rafizi Ramli.
He said he will raise the proposal with Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, at the state’s request, adding that the funds are subject to federal treasury guidelines.
“These requests must be studied holistically by the Finance Ministry as they may have an impact on all the federal projects (in Sabah).
“Whether or not you can put the money into a trust fund is just part of it. We have to look into the totality of it, such as how a project was requested, how it was valued, and eventually approved.
“The funds are regulated by the law, including how the money is being spent for its intended purpose,” said Rafizi after hosting a half-term review of the 12th Malaysia Plan (12MP) dialogue session here today.
Sabah Chief Minister Datuk Seri Hajiji Noor has proposed for the unused federal funds to be kept in a trust fund so that the money saved can be used for the subsequent year.
His suggestion came amid the slow implementation of projects under the 12MP, where only 21.61% of the 1,181 projects had so far been carried out.
Sabah obtained the third highest development budget in the country for this year, with over RM6 billion.
The usual practice was for the unused funds to be returned to the federal government.
During the mid-term review presentation, it was revealed that Sabah is currently the sixth largest contributor to the national gross domestic product, providing 5.7%. The state relies heavily on its primary industries sector, which contributes to 41.9% of the state’s economy.
Sabah’s labour productivity at 42.2% is also lower than the national productivity level, which is at 92.1%. The state also records the highest unemployment rate among its graduates at 8.4%, far exceeding the national average (4.1%).
The state also faces a serious issue in the affordability of its affordable homes, ranked second in the country only after Sarawak. – The Vibes, June 27, 2023
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