The State Government has received the special grant interim payment of RM300 million for the year 2023 on November 28.

Finance Minister Datuk Seri Panglima Masidi Manjun said the State Government wishes to express its thanks to the Prime Minister, Datuk Seri Anwar Ibrahim and the Federal Government for the increase in the interim payment.

“We are confident and believe that the Unity Government which is ruling and with the spirit of Malaysia Madani, the Sabah State Government’s claim will be respected and fulfilled,” he said in winding up the debate for the 2024 State Budget at the State Legislative Assembly.

“Even though we are still not satisfied with what is given, and we will continue with the claim, as people of Sabah who are good, we say thank you to the Prime Minister for the interim payment,” he said.

Masidi also said that they are confident and believe the Unity Government and the Sabah Government will one day, at the nearest future, reach an agreement to determine the 40 percent that we are claiming.

Earlier, at the August House, Tungku assemblyman Assaffal P. Alian commented on the Pakatan Harapan Sabah’s decision to withdraw the suit against the Federal Government on the 40 percent entitlement since it will be finalised next year in April.

“This has happened twice. If it continues like this, I don’t see the seriousness of the Federal Government to fulfill our rights in the constitution even though they have promised that this issue will be decided soon,” said Assafal.

Masidi said that he does not want to judge the statements made by other people but reminded that the provision (in the constitution) of 40 percent was clear.

“Our claim must be based on the provisions in the constitution. I also want to say to Yang Berhormat, as long as life (still) resides in the body, as long as there is power, we must make sure we get that 40 percent,” he said.

Senallang assemblyman Datuk Seri Panglima Mohd Shafie Apdal expressed his full support as the head of opposition for Sabah to demand her rights in the constitution which was promised for 60 years.

Masidi in his speech also said there was no need to draft a new formula.

He also said that his ministry will continue being proactive to increase the State revenue by exploring new incomes.

“We will continue to explore every opportunity with potential to become new incomes. With that, the dependence on the State Sales Tax, CO (Petroleum Crude Oil) and CPO (Crude Palm Oil) can be reduced,” he said.

He added that in order to ensure the standard and quality of life of her people are guaranteed, the state’s income must be strong and increased.

In relation to that, all ministries and departments are called to answer this call by doubling efforts to ensure this objective is attained, he said.

Masidi also replied to Sindumin on the imbalance in the distribution of supply expenditure funding which is higher than the development expenditure.

He explained that the previous governments have studied and have tried to implement the biased development budget.

“But because of the overall state’s financial constraints, the State Government is not capable of balancing or contributing more to the Development Fund Group from the Revenue Account combined. Aside from that, this issue has been inherited from before until now,” he said.

He added that a total of RM808.06 million in the 2024 Budget will be used as emolument spending, RM2.203 billion for repetitive spending, and for special expenditure, RM1.74 billion is allocated.

Masidi also informed the August House that the State Government is planning and drafting to realign all the allocations under the Supply and Development Votes when preparing for the 13th Malaysia Plan (13MP) where the allocation distribution focus will be balanced between the supply expenditure and development in phases and is dependent on the capability of the state finance.

He also said that the State Government confirms that the development spending percentage from the Federal Government allocation is still low in October 2023.

“As of 31 October 2023, the funding that has been spent is RM3.513 billion or 66.77 percent compared to the allocation revised,” he said.

He also said from the revised expenditure of RM5.262 billion, only RM1.501 billion projects implemented by departments or agencies under the State Government have achieved the expenditure performance of 66.09 percent which is equivalent to RM922 million as of 31 October 2023.

He said that overall, the projects that have been registered under MyProjek involved 1,217 projects consisting of 996 extension projects and 221 new projects.

“For information, the expenditure for extension projects has reached RM3.338 billion or 63.66 percent as of 31 October 2023. The State Government is confident that this expenditure performance will increase further by December 2023,” he said.

Meanwhile, for new projects or still under pre-implementation, they do not need much funding as they are only involved in preliminary jobs and take about six months to 12 months to prepare and implement, he said.

“At this stage, the State Government allocation needs are lesser compared to the funding channeled by the Federal Government. An allocation channeled amounting RM1.259 billion only RM175.24 million can be spent or 13.92 percent only,” he said.

“According to the expenditure performance for projects implemented by State Government departments and agencies, the state expenditure performance consistently reaches above 80 percent every year. This shows State Government departments and agencies are quite good in implementing federal development projects,” he said.

Masidi also said that in order to assist in improving the effectiveness and performance in implementing federal projects, the State Development Action Council meeting (MTPNg) chaired by the Chief Minister was held on a quarterly basis to coordinate, improve and monitor the implementation issues of the federal-funded development project.

He said the allocation of RM6.5 billion presented had been reviewed for its use to RM5.262 billion in June 2023 by the Federal Government.

This aims to maintain the performance of the expenditure of each federal ministry, he said.

Masidi also shared the State Government’s initiative on government-linked companies (GLCs) whereby the State Government through the Finance Ministry is in the midst of implementing the State Public Agency Management and Governance Improvement Plan.

“This implementation includes bringing in specialist auditors to conduct audits and reviews of troubled companies. A careful examination of these financial statements will help the State public agency to identify risks and find ways to either maintain or repair the business and activities carried out,” he said.

He also said that as the machinery that helps the State Government increase revenue through investment returns, several initiatives will be implemented next year, namely:

(a) The appointment of the Board of Directors (ALP) is according to criteria based on experience, professionalism, qualifications and competence. This aims to ensure that there is a check and balance in every appointment of the Board of Directors.

(b) Implement the Score Card System as a performance benchmark that helps the government monitor and improve the accountability of the appointed Board Members.

(c) Implement the Merit Demerit System as a monitoring strategy for State public agencies and enforce rules and laws through the Committee Governance Regulation and Compliance Corporate to ensure that public agency activities are carried out efficiently, prudently and effectively. The implementation of these systems aims to strengthen the existing State Company Information System (SCIS).

(d) Establish a State Public Agency Investment and Loan Management Committee to ensure that investments implemented can provide profitable returns, helping State public agencies to realise business proposals that have potential and ensure that the interests of the State Government are safeguarded.

(e) Gazette the State public agency for auditing in order to give a true and fair picture of the financial position and the financial records thereof are maintained in an orderly and up-to-date manner. Collaborate with the Malaysian Anti-Corruption Commission (MACC) in assessing whether financial management at State public agencies has been carried out transparently and with integrity in accordance with relevant financial laws and regulations.

Masidi also said that the GLCs must pay at least 10 percent dividend from the company’s profit to the State Government and stressed that if there are “excess profits” during each financial year, the dividend percentage must be increased to the maximum without jeopardising the company’s financial standing.

“To ensure the dividend payments are implemented by every GLC, the State Government will also improve the circulars on the dividend payment and Code of Statutory Bodies Governance book,” he said.

He added that the State Government will take action on GLCs that are suffering losses.

“Hence, I urge all GLCs to take the initiative to improve the company’s financial performance so that it can bring returns to the State Government,” he said.

The assembly later passed the state budget with a majority voice.

Source:
courtesy of THE BORNEO POST

by The Borneo Post

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]