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Friday, October 19, 2012

Why Sabah, Sarawak excluded from oil panel?


An opposition MP raises this question in Parliament, reminding the government Sabah was still one of the poorest states despite being an oil producer.

KOTA KINABALU: Tawau MP Chua Soon Bui has questioned the exclusion of Sabah and Sarawak in the special committee set up to review the oil royalty for oil and gas producing states.

Chia posed the question during her Budget 2013 debate speech in Parliament recently when enquiring about the progress of the committee that had been quiet ever since Prime Minister Najib Tun Razak announced its setting up on Aug 22.

She said a review of the 5% oil royalty rate paid to Sabah was 36 years old and it was time it was reviewed since much in the country and the world had changed and the right to extract all oil and gas resources found within Sabah in perpetuity was unreasonable.

Sabah, she said, was acknowledged as being the poorest state in the country despite being endowed with rich oil and gas resources and the continued extraction of its wealth was unacceptable.

Chua reminded that Sabah contributed about 25% of petroleum revenue, 12% of gas revenue to the nation which amounted to a large proportion of the RM65.45 billion of oil, gas and tax revenue paid to the federal government.

Increasing crime rate

The opposition MP also urged the Home Ministry to address increasing crime in housings areas in Sabah especially in Tawau which had frightened investors and locals who never had to grapple with the problem before.
She said her constituents in Tawau no longer felt safe after reports of robberies and house break-ins not only took place at night but in broad daylight too.
The change from a carefree social atmosphere in the the east coast district to that of one under siege, she said, was unhealthy and the blame was being placed on the large number of mostly poor illegal immigrants in the state.

Chua, who is also a Sabah Progressive Party (SAPP) vice-president, inquired how much of the RM591 million allocated by the government in its budget to create safe and harmonious neighbourhoods was for Sabah and Tawau.

“How many of the motorcycle patrolling units out of the total 1,000 units (at RM20,000 per unit) would be allocated to Sabah to monitor housing areas?

“How many of the police volunteer reserve (PVR) out of the total 10,000 officers would be trained in Sabah to assist the police in Sabah in combating crime? How many CCTVs would be installed in
Sabah and Tawau to prevent street crimes in urban areas?” she asked.

Lack of jobs

Touching on the lack of jobs in the state, Chua urged the federal government to provide skills training and re-training programmes given the fact that the unemployment rate in Sabah was 5.6%, the highest in the country.
She said employment and training opportunities especially in the oil and gas industry should be given to young people in Sabah as the state was a major contributor.

Chia also urged the Education Ministry to review the RM100 million budget allocation to take into account Chinese primary schools as the number of such schools was more than double of the national type schools.
“Most of the Chinese primary schools are currently overcrowded, some with more than 50 students per classroom,” she said.

Chua also asked the Education Ministry to clarify reports that only 10 computer laboratories built for 300 Sekolah Kebangsaan in Sabah are fully functional as students were being deprived of learning information and communications technology due to a government foul-up.

Queville To

30 comments:

  1. don't manipulate the facts.. Sabah poor because of Yong Teck Lee..

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  2. during yong teck lee tenure, crime rate is worse than now.. no job opportunities for sabahan and no project given to local contractors..

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    1. For development, RM2.42 billion will be provided, with thw state contributing RM1 billion and RM1.42 billion from the federal government

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  3. the RM4.088 billion 2013 State Budget presented by Chief Minister Datuk Seri Musa Aman as pragmatic and free of election gimmicks.

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    1. Kerajaan negeri Sabah memperuntukkan RM4.088 bilion bagi Belanjawan Negeri 2013, yang meningkat RM40 juta berbanding anggaran perbekalan bagi 2012.

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    2. Ketua Menteri Sabah Datuk Seri Musa Aman, yang juga Menteri Kewangan Negeri, berkata anggaran perbekalan 2013 merangkumi tiga komponen utama iaitu Anggaran Emolumen RM663.17 juta (pertambahan RM39.51 juta berbanding RM623.66 juta pada 2012), Perbelanjaan Berulang RM1.120 bilion (pertambahan RM32.92 juta berbanding RM1.O87 bilion) dan Perbelanjaan Khas RM2.337 bilion (pertambahan RM34 juta berbanding RM2.303 bilion).

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    3. Belanjawan negeri ini untuk semua lapisan rakyat dengan mengambil kira keperluan dan kesejahteraan rakyat di seluruh negeri untuk memacu pembangunan negeri ke tahap yang lebih tinggi.

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  4. Petronas paid Sabah RM941.25 million in oil royalty this year - the highest amount ever in the State's history, said Chief Minister Datuk Seri Musa Aman.

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    1. The amount also exceeded the State Government's initial estimate of RM774.6 million, said Musa, who is also State Finance Minister, at the State Legislative Assembly, Wednesday.

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    2. In his Budget winding up speech for the Finance Ministry, he also informed House members that the Federal Government was now taking a look at the Petronas oil royalty issue and is expected to give its feedback at an appropriate time.

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    3. Responding to the query by Luyang Assemblywoman Melanie Chia who asked if the State Government would be paying the RM544 million bond at one go upon its maturity date in 2013, which may result in a cumulative deficit of RM804.48 million, he said the State Government was confident it would be able to provide sufficient allocation when it is time to pay the bond.

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    4. He also corrected Chia that the bond maturity period is five years and since it was issued in 2009, its maturity date is 2014 and not 2013.

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    5. Musa also criticised Sri Tanjung Assemblyman Jimmy Wong who in debating the State 2013 Budget had claimed that the State Budget looked the same each year.

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    6. "This is a view from people who do not know how to distinguish between right and the wrong. It is a typical opposition ploy to always deny the successes and achievements of the Government.

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    7. "By refusing to look and listen they continue to tell the people that the Barisan Nasional (BN) Government is incompetent, incapable and not struggling for the rakyat," he said.

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    8. Musa said the State's financial standing had been improving each year and apart from introducing new programmes, the old ones that had greatly benefited the people were maintained and continued.

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    9. "This does not mean that the State Government is out of ideas because the implementation of the continuing programmes is always being monitored and improved in line with the current needs of the people," he said.

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    10. Contrary to the Sri Tanjung Assemblyman's statement, he said the strategy and approach taken in preparing the State Budget had always been dynamic from year to year.

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    11. The strategies introduced each year had successfully produced effective output such as in increasing the State revenue collection, which could be seen in 2007 when revenue went up to RM2.37 billion and then touched RM3.3 billion in 2008.

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    12. "As I mentioned in my State 2013 Budget speech last Friday, the highest State revenue collection ever was in 2011 when RM4.368 billion was collected," he said.

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    13. Musa said that by snubbing the State financial stand and claiming that that the State Consolidated Fund had shrunk, Wong had shown that he did not understand the State Budget planning mechanism.

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    14. "The Government is prepared to provide a huge allocation for the State's development although it realised that it will reduce the State Consolidated Fund.

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    15. "(But), for whom is this development if not for the prosperity of the State and people. What is important is the State's financial coffers remain strong even though we increase expenditure," he said.

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    16. Musa also explained that the Chief Minister's Department (CMD) received the highest allocation for next year because it had to address so many things.

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    17. He cited a RM203 million development fund specifically for the development of religious, rural, sentuhan kasih (touch point programme), forestry and land, while RM443.9 million was to pay for the salary and operations of the various departments under the CMD.

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    18. Meanwhile, a major portion of the allocation to the Finance Ministry would be distributed to the relevant departments to implement programmes and projects.

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    19. A total of RM960 million is payment for the development of several trust share accounts and another RM873.6 million is to be given for special fund projects under the oil palm industry, repair damages by natural disasters and support infrastructure, government buildings, grant to non-Muslim religious bodies and schools, government vehicles, payment of State Government's debts, payment to the water concessionaires as well as investments equity.

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    20. Other expenses included operational cost and salary.

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    21. "If the Sri Tanjung Assemblyman had read the explanation in the distributed State 2013 Budget booklet, he should have understood this because it has already been clearly explained there.

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    22. "So the conclusion is the assemblyman did not read the State 2013 Budget booklet and did not even know the issues raised by him," he said in response to what he described as "unhealthy accusations" by Wong when disputing the big allocation for the Chief Minister's Department and Finance Ministry.

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