Chief Minister Tan Sri Datuk Seri Panglima Musa Haji Aman yesterday unveiled a State Budget of RM4.104 billion for 2018, with a surplus of RM64.89 million.

In presenting the fourth surplus State Budget, with the theme “Strengthening the Economy, Prospering the People”, Musa said the state government estimated revenue collection amounting to RM4.169 billion.

“The 2018 revenue estimates show an increase of 9.2 percent compared to original revenue estimate for the year 2017. We are confident that next year’s projection and target will be achieved,” Musa said.

Of the RM4,169.2 million revenue estimates, RM1,128.8 million or 27.1 per cent is tax revenue; RM2,638.9 million or 63.3 percent is non-tax revenue; and RM401.5 million or 9.6 percent in non-revenue receipts.

He added that with the increase in the prices and production of crude oil and natural gas, the state government has received RM1,246.4 million of petroleum royalty in year 2017, which exceeded the original estimate of RM985 million.

“This is the highest amount of petroleum royalty ever received in the state’s history,” Musa said.

For the year 2018, petroleum royalty was expected to increase further to RM1,318 million, which is 31.6 per cent of the state revenue.

As for the State Sales Tax, crude palm oil (CPO) will continue to be the major contributor with a total of RM936 million or 22.5 per cent of the state revenue, he revealed.

At the same time, the State Sales Tax on lottery tickets for the year 2018 was estimated at RM60 million.

In the year 2018, the state government will increase the tax rate for the sale of betting through slot machines from 10 to 15 per cent, Musa disclosed.

“This is in line with the current rate for State Sales Tax on lottery tickets. The new rate will come into effect on January 1, 2018. With this rate review, sales tax on slot machines is estimated to contribute RM20 million in the year 2018,” he said.

Meanwhile, revenue collection for the Sabah Ports and Harbour Department has been increasing annually, whereby its contribution to the state revenue was expected to amount to RM33.6 million next year.

The interest and investment returns from government linked companies were also expected to increase to RM453 million next year, Musa noted.

Other key revenue collector departments for next year are the Land and Survey Department (RM376.7 million), Sabah Water Department (RM250.2 million) and Forestry Department (RM213.5 million).

Additionally, receipts and contributions from the Federal Government next year were also expected to amount to RM401.4 million.

“Given the state revenue estimates for the year 2018, the government will spend wisely in order to bring an impact that will benefit the people. At the same time we will continue to practice prudent spending in order to prevent unnecessary wastage.

“We have restructured the priority of spending and will only spend according to the requirements, yet not affecting the effectiveness of the government’s delivery system,” he said.

Musa then proposed that for supply expenditure for the year 2018, an allocation of RM4,104.35 million will comprise RM763.67 million for emoluments, RM1,300.85 million for recurrent expenditures and RM2,039.83 million for special expenditures.

He also proposed a sum of RM1,090.06 million to be allocated for development expenditures, whereby RM838.31 million is the state allocation and RM251.75 million is the federal allocation.

Musa also added that the state government shall contribute RM820 million to the state development fund next year.

With regards to allocation distribution, he said that infrastructure and public amenities development programmes will continue to be the focus and main agenda of the state government.

“This effort is not only a catalyst for strengthening the state’s economy, but also to ensure that welfare and wellbeing are at a higher quality level throughout the state,” he stressed.

Musa added that the state government was aware that the provision of basic infrastructure and facilities such as roads, bridges, treated water supply and sewerage system need to be addressed.

“These infrastructure facilities are the foundations for the development of other sectors such as agriculture, tourism and manufacturing sectors, as well as services that can spur and boost our economy,” he said.

Hence, a budget of RM1,339.6 million has been allocated to provide and further enhance the infrastructure and public amenities, out of which RM287.8 million will go to the Public Works Department (PWD) to implement several programmes.

These comprise building and upgrading several roads in the area of Kota Kinabalu, Penampang and Inanam (RM37.5 million); upgrading several roads in Tamparuli, Kota Belud and Ranau (RM28 million) to repair old and damaged sewer pipes and other related works at the Tawau Central Pump Station, to construct the Telangkai River bridge in Nabawan, and to conduct studies in addressing traffic congestion around critical areas in Kota Kinabalu, Penampang, Putatan, Likas, Inanam and Sulaman.

The State Water Department has been allocated RM597.8 million for operational purposes and implementation of various programmes consisting of works to address unforeseen problems related to water supply systems throughout the state (RM20 million); construction of water treatment plants, storage tanks, distribution and transmission pipelines (RM48 million); upgrading the Kudat Water Supply System Phase III (RM5 million); and programmes to reduce non-revenue water (NRW) in Papar, Tambunan and Tuaran with the objective to minimise NRW.

Musa added the federal government will also continue to channel allocations through soft loans to implement water supply projects in Sabah, including the Tawau Water Supply Scheme Phase III (RM470.4 million); expansion capacity of the Telibong Water Treatment Plant (RM429.2 million); construction of the Kundasang Water Treatment Plant (RM161.9 million); and financing of the new Semporna Water Treatment Plant at a cost of RM160 million, which was currently being implemented with a progress of 51.2 per cent and expected to be completed by 2019.

The federal government will also be financing railway projects consisting of the upgrading of railway from Halogilat to Tenom by replacing the 60lb rail with 80lb at a cost of RM49.6 million to allow the use of higher capacity, more comfortable and safer locomotive for its passengers; and to provide three additional sets of Diesel Multiple Units costing RM46 million, which will allow the department to increase its scheduled services according to current demand.

The state government will also allocate RM24.2 million to improve port facilities next year. Projects that will be implemented include the installation of remote monitoring systems for navigational aids and estuary beacons at ports limit waters of Semporna, Kunak, Tawau and Kudat; the construction of ships and multipurpose boats to support and monitor marine and port activities; and hydrographic survey works at the Semporna Port Limit waters area, Musa said.

Meanwhile, to reduce flash floods, the Drainage and Irrigation Department will implement drainage and flood mitigation programmes throughout the state totalling RM92.7 million. The works will be carried out at Sungai Tawau and Telipok, Bandar Sierra, Sungai Tebobon, Sungai Rampayan, Beaufort, Taman Jumbo and Putatan as well as a drainage master plan study for Beluran, Telupid and Semporna.

For the agriculture sector, the state government plans to strengthen the plantation sub-sector by focusing on crop development, research, accreditation and certification, quarantine enforcement, agropreneur development and production of food crops such as vegetables and fruits including organics food crops, he said.

The planting of MD2 Pineapple, MATAG and Tacunan Coconut, Pisang Sabah and Musang King Durian will be given priority as these crops have potential in local and export markets, Musa said, adding that focus will also be given to cash crops such as sweet potatoes, ground nuts and coffee.

Furthermore, he revealed RM509.7 million will be allocated for the development of the agriculture sector, whereby RM59.1 million will go to development projects including RM21.1 million under the federal reimbursable project.

He pointed out that an allocation of RM14.5 million under the supply budget for operating and maintaining all irrigation schemes throughout Sabah will also be provided. At the same time, a RM4.9 million budget will be provided under the development budget to improve drainage, irrigation and paddy fields.

Additionally, a RM17 million subsidy on paddy-plowing to all farmers throughout the state will also be provided to allow farmers to continue paddy cultivation activities and maintain rice self-sufficiency level at 30 percent.

Musa also announced that the state government will allocate RM134 million to accelerate the development of the manufacturing sector and to intensify efforts to promote trade investment opportunities in Sabah, which will include a RM46.3 million allocation to the Sipitang Oil and Gas Industrial Park (SOGIP) and RM32.2 million to POIC Lahad Datu as well as RM10 million to the Kota Kinabalu Industrial Park (KKIP) and RM8.7 million to the Sabah Economic Development Corporation (SEDCO).

With regards to the tourism sector, an allocation of RM228 million has been allocated, he said.

“One of the efforts taken by the government to strengthen the domestic tourism market is through rural tourism development with Kiulu and Kadamaian as pilot projects. The government wants to explore new products known as Lung Cleansing tourism which involves trekking and hiking activities,” he said.

At the same time, Musa also announced that unique and historical buildings aged 50 years and above with high historical value will be gazetted as cultural heritage and will be promoted as new tourism products in Sabah. These include the Turnbull Hall, the original building of the Kent College in Tuaran, the old building of Wisma Radio Sabah and Wisma Kewangan.

The Chief Minister further emphasised that the government was committed to implement people-centric and people-friendly programmes and projects, and has allocated RM422.5 million for the purpose.

At the same time, RM15.6 million will be allocated for the implementation of rural entrepreneurship development programmes, rural tourism, entrepreneurial training and micro-credit financing as well as strengthening the ‘one district – one product’ programme as an approach to increase the income of rural target groups.

The state government will also continue assisting special privileged people (OKU), senior citizens and orphans, as well as needy groups through schemes for general assistance, OKU, senior citizens and orphans. An allocation of RM60.3 million has been allocated for this purpose.

An allocation of RM12 million has also been allotted for school aid programmes such as better quality school uniforms, shoes and stationery, Musa disclosed.

“The government hopes that these incentives will assist to lighten the financial burden of parents on school expenses, especially for the low-income groups,” he said.

Similarly, the state government has also allocated RM315.3 million to strengthen human capital development. A fund of RM40.6 million will go to scholarships and financial assistance to students pursuing their tertiary education; RM34 million for the development and operation of Islamic religious schools and mosques under the Sabah State Religious Affairs Department (JHEINS); and RM32 million for the development of religious centres for non-Muslims a well as missionary and private schools.

The rest comprise RM29.6 million for training and courses related to information, communication and technology (ICT); RM18 million for development and operation of library including rural libraries and mobile libraries throughout Sabah; RM16.3 million to implement various trainings and skills courses at the Human Resources Development Department; RM9.7 million to implement various programmes under the Human Resources Development Department; RM10 million to implement courses at agricultural institutions; and special funds and partnership with the private sector to develop the Kota Kinabalu Regional Library in Tanjung Aru which will be completed next year.

Women, youth and sports have also been allocated RM91.4 million in the budget to implement, among others, entrepreneurship development programmes for single mothers and women living in poverty, Musa added.

Source:
courtesy of THE BORNEO POST

by Jenne Lajiun

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