Shafie thankful for RM53 mil in special grant for Sabah

Sabah Chief Minister Shafie Apdal says the special grant was one of the major topics discussed with the prime minister under MA63.

PETALING JAYA: Sabah Chief Minister Shafie Apdal thanked the federal government for acknowledging Sabah’s rights by increasing its special grant even if the amount was not what the state government had hoped for.

Speaking to reporters after the tabling of the 2020 Budget by Finance Minister Lim Guan Eng, Shafie said the doubling of the special grant from RM26.7 million to RM53.4 million could help Sabah despite it being a “small increase”.

The special grant is stipulated in Article 112D of the Federal Constitution which states that Sabah has the right to 40% of net revenue derived by the federal government from the state.

Since the 1970s, the amount has been set at RM26.7 million and was to be reviewed after a certain period of time.

Shafie said the issue was one of the main topics discussed with the prime minister in the special committee on Malaysia Agreement 1963 (MA63) and it had been agreed that it is time the amount is adjusted.

“Although the new allocation of RM53.4 million means the adjustment is only about RM1 million a year, it is understandable because of the current economic situation and the nation has a huge debt to repay.

“The amount is small but at least, we get the increase and I believe it will help us with our expenditures. Sabah needs funds because we have the third highest population in the country and we are the second biggest state,” he said.

Shafie said the overall RM5.2 billion allocated to Sabah next year is most welcomed, especially for infrastructure projects like power and water supply and roads.

He said the continuation of the Pan Borneo Highway is a good news for Sabah as the state government had hoped the megaproject would help attract investors, and reduce transportation costs.

He described the budget as “inclusive” because all racial and religious groups were given special aid, even if the amounts are not as big as they had wanted.

“I hope there would be additional funds soon for security and defence. There is a need to deploy defence assets and place them where they are needed.

“These include battleships, helicopters and the like. All these need to be realised. And we also hope there is an increase in allocation for police and the home ministry,” he said. - FMT