Sabah 2012 Budget Is the Biggest Ever RM4.048 Billion

Posted: November 19, 2011 in Barisan National, Malaysia, Malaysia Today, Malaysian Economics, Musa Aman, North Borneo, Sabah, Sabah Politics, Sabah UMNO, UMNO
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Sabah Chief Minister Musa Aman has turned the fortunes of the state around since he came to power in 2003. He has come down hard on corruption, has improved infrastructure and infused new life into a creaking state machinery.

Sabah achieved sound financial management 11 years in a row with clean bill certification awarded by the Auditor General. Sabah also achieved the highest ratings of “AAA” by RAM Ratings Services Berhad for 3 consecutive years. Sabah also obtained ISO certification by Moody International for efficiency and proper state budget management for 3 consecutive years. Sabah under Musa Aman achieved record annual GDP growth, averaging 5%, in the eight years, 2004-05 to 2008-11. For 2012 the growth is projected 5% again when the State 2012 Budget was unveiled yesterday by Musa Aman amidst a backdrop of rising uncertainties in the global economy.

The release of the 2012 Sabah budget yesterday has left many Sabah observers relieved by what Sabah Chief Minister cum Finance Minister Musa Aman didn’t do: He avoided throwing Sabah’s economic recovery off course. The widespread view is that he has handled two major issues — the state’s Wellbeing and Prosperity — with aplomb.

The budget for the next fiscal year 2012 presents a balanced approach to long-term economic planning and short-term considerations of sustaining … the momentum in economic recovery. The budget reflects confidence and clarity and many describe the budget as “prudent and progressive”, and one businessman friend called the budget … pragmatic and practical.

In presenting previous budgets in his role as finance minister between 2001 and 2003, Musa Aman was as populist as they come. Today, his approach is different. “Fiscal policy has to be guided by the required framework for fiscal prudence,” Musa said as he unveiled the budget, proposing to spent RM4.048 billion next year making it the biggest State Budget ever in the history of Sabah.

The overall focus of the government on improving its fiscal position and increasing fiscal transparency is highly commendable. Musa Aman said the huge supply expenditure was estimated after taking into account the states financial strength and estimates of revenue totaling RM3.69 billion. The major revenue contribution is to come from sales on crude palm oil, petroleum royalties, income and interest from investment, land and forestry and another RM1.521 billion from the Federal Government.

Moving toward better fiscal management and transparency would mean a number of benefits, including increasing the efficiency of the economy, improving Sabah’s attractiveness as an investment destination and providing the government greater fiscal flexibility if — or perhaps when — it has to deal with future economic shocks.

Musa Aman who is also the finance minister has done “a decent job”, the 2010 Auditor General Report showed several actual figures that reflect the highest achievements in the states financial history such as:
1) State Reserves exceeding RM3 billion
2) State Revenue exceeding RM4 billion
3) Actual surplus amounting to RM730 billion
4) Development expenditures at RM1.17 billion
5) No arrears on Federal loans ( Under Musa Aman Sabah Government has paid all its dues to the Federal Government)

I’m sure the latest budget may lay the foundation for bolder measures in coming years. However, it is often the budget’s less bold and often boring bits that matter the most. That is, the reams of tedious fiscal arithmetic that go into determining whether the various commitments that the finance minister makes in his budget speech can be easily funded from the revenue or hinge on some preposterously optimistic assumptions. On this criterion, the budget fares rather well.

To critics of Musa Aman’s 2012 Budget, Keep in mind that Pakatan Governments would kill to be in the position Sabah is in, to grow at 5%, Sabah has endured the economic downturn with modest impact, and its economy “grew well” in 2011, “so let us not worry too much”.

Musa Aman has maintained relief for some sectors. For example, the implementation of infrastructure and public utilities programmes will involve an allocation of RM1.285 billion of which RM458.8 million is for water supply, Rm270.63 million for road and RM63.58 for sewerage. And then to strengthening further the agriculture sector RM335.95 million would be allocated so that there is high yield in local food production. Even in the tourism sector RM158.84 will be allocated and mind you tourism from January to September 2011 registered RM3.662 billion of which RM1.45 billion was from foreign tourist and RM2.212 billion from domestic tourist. Even the manufacturing sector will be getting allocation of RM98.15 million.

Sabah is addressing foreign direct investment (FDI), too. The Sabah Government under Musa Aman is working with the Federal Government and wants to make FDI user-friendly by consolidating regulations and guidelines into one document. This will enhance the clarity and predictability of our FDI policy to foreign investors. Musa Aman expects foreign investors to bring in big money — an estimated in billions.

If Musa Aman has his way, Sabah’s GDP will grow well beyond current expectations. One of his priorities is to revert quickly to the high-growth path of 9%, then find the means to hit double-digit growth. The economy stabilized in the first quarter of 2010-2011 itself, when it clocked a GDP growth of 5%, as against 5.8% in the second quarter of the preceding year. It registered a strong rebound in the second quarter, when the growth rate rose to 5.5%. With the advance estimates placing the likely growth for 2010-2011 at 5%, Musa Aman said “we are indeed vindicated in our policy stand.” The final figure may well turn out to be higher when the third- and fourth-quarter GDP estimates for 2010-2011 become available. He expects growth in the next fiscal year to be higher.

Many things do indeed seem to be going his way. The growth rate in manufacturing in December, for example, was 7% — the highest in two decades. There are also signs of a turnaround in merchandise exports, with growth in November and December after a decline for some months.

Indeed, Sabah has become miracle economy, defined internationally as those with over 5% growth. The best news comes from Sabah, historically the biggest failure. From 2004-05 to 2008-11, Sabah averaged 5% growth annually. It was virtually Malaysia’s fastest growing state, on par with Selangor and Penang. That represents a sensational turnaround. Musa Aman deserves an award for the most inclusive revolution of the decade and he deserves kudos for making Sabah stage a huge turnaround.

I must qualify this story. Fast growth in poor states does not automatically mean that growth has reached all poor people.

But let us celebrate the emergence of Sabah as miracle economy. This is surely one of the biggest achievements of the decade.

  1. illya says:

    ‘The biggest ever’ and we as Sabahan expect more from this budget. how effective it is, we just wait and see after a year.


  2. Bei Soo Lang says:

    Mahathir-Najib made us debtors
    Awang Abdillah | December 1, 2011

    The growing national debt has left oil rich Sabah and Sarawak liable to almost RM80 billion in combined owings.

    Umno has seen good leaders and bad ones. How bad is bad leadership depends on what kind of characteristics and value system he picks up.

    If he picks the extreme form of negative values then the nation is in deep trouble.

    Umno, since Independence and until 1981, saw three late prime ministers who made positive contributions to the country.

    They each proved to serve the national interests first which is the essence of good governance.

    But things began to change in 1981 after the fourth premier – Tun Dr Mahathir Mohamad – took over.

    Under his reign good governance took a backseat and things went from bad to worse and now under Prime Minister Najib Tun Razak, we’re sinking from worse to the worst.

    Over the past 30 years we have witnessed how Umno and Sarawak’s Pesaka Bumiputra Bersatu (PBB) have spewed their bad and evil traits without any feelings of remorse .

    Abuses of power, corruption, plundering and looting of state and national wealth were done on a massive scale. The national debt keeps on growing at a rapid pace .

    Drowning in debts

    In 2009 when Najib took over the reign’s from ex-premier Abdullah Ahmad Badawi, the national debt stood at more than RM362 billion. Now our national debts stands at RM437 billion.

    In contrast our expected revenue for 2012 is only about RM186.9 billion!

    If the debt is to be shared by all the 13 states of Malaysia, then each state will bear a debt of RM39.7 billion directly or indirectly.

    Knowing this, is it worth supporting the Umno /Barisan Nasional government, anymore?

    Instead of giving us returns for exploiting our wealth, Sarawakians and Sabahans are now burdened with RM39.7 billion debt each.

    Global history has repeatedly shown us how a bad leader had acted alone.

    We had (Germany’s Adolf) Hilter, (Iraq’s) Saddam (Hussein) and (Philippines’ Ferdinand) Marcos – all of them acted alone and individually to create havoc upon mankind and their people.

    These are called dangerous leaders – which is of the worst kind.

    Funds siphoned

    In Malaysia we saw Mahathir – on a number of occasions – having acted on his own in the controlling of the judiciary, giving massive projects to cronies, practicing a policy of massive borrowings from banks and the EPF (Employees Provident Fund) and spewing lies as a political tool.

    Sarawak Chief Minister Taib Mahmud too has literally taken billions of ringgit of state funds.

    And under Najib, we see and hear of massive abuse of public funds with little accountability.

    And even as you read this commentary, funds from our EPF continue to be siphoned out at an alarming rate as disclosed in the Auditor-General’s 2010 report.

    Knowing the characteristic of our leadership why then are we dependent on them? Such leaders must be rejected in totality.

    Awang Abdillah is a political observer and a veteran writer in Sarawak. He is an FMT columnist.


  3. greenhauz says:

    Pengagihan dan Pelaksanaan masih kurang mantap. Figures shows improvement but rakyat still feel unhappy. why? Perhaps distribution should be relocate or readjust. How far has the necessary actions been taken in the cause for rakyat welfare and long term improvement? Look at Selangor, Johor, P.Pinang, Melaka we should be able to prosper more and living in better conditions.


  4. Edelweiss says:

    kawasan pedalaman atau luar bandar Sabah meliputi 70% kawasan di Sabah. rasanya bukan mudah untuk memajukan kawasan ini dalam jangka masa yang pendek. cuma diharapkan peruntukan yang diberi akan sentiasa berterusan dan dipertingkatkan dari masa ke semasa. pastikan juga tidak berlaku ketirisan atau penyelewengan dalam pelaksanaan projek2 pembangunan.


  5. Edelweiss says:

    teringat juga pula PATI ni waktu bajet 2012 Sabah dibentangkan. pasti mereka pun akan menerima kebaikan dari bajet yang diperuntukkan untuk rakyat Sabah, warganegara Malaysia.


  6. Boboy says:

    Jadi sekarang apa yang perlu rancanganlah pembangunan Negeri Sabah terutama sekali berikan tumpuan dikawasan Luar Bandar.


  7. Yoyo says:

    Bagus juga cara pengurusan kewangan oleh Datuk Musa dan pemimpin BN lain di Sabah. Tahniah teruskan yang terbaik.


  8. Rizal Tambunan says:

    All these money is going into someone’s pocket, more likely Musa’s crony’s lah. Yah read here where the money is going,


  9. sahut says:

    Amat baik.


  10. lauhj says:

    Hope it helps more people of Sabah.


  11. Pemerhati says:

    Kemiskinan ada di mana2. Tidak mustahil PATI yang menyumbang kepada gelaran negeri termiskin di Sabah sebab ada yang tidak tahu bezakan orang tempatan dan pendatang.


  12. Pemerhati says:

    Projek2 nanti beri sama kontraktor yang layak saja supaya dapat siap on time dan tidak tertangguh-tangguh sampai terlebih daripada peruntukan sebenar.


  13. Anonymous says:

    Terima kasih diucapkan.


  14. floyd says:

    Selvarajah said:
    “No arrears on Federal loans (Under Musa Aman Sabah Government has paid all its dues to the Federal Government)”

    I say “what about the govt’s debt to long term govt’s contract holders like water concessionaires?” It was reported in the local dailies that the govt still owes them more than RM600million several years ago. It could well be in excess of RM1billion now. That’s 25% of next year’s budget wiped. I think we don’t have a lot of money left to spend if one is to look at it from this perspective.


  15. martycruz says:

    if he think that all his ‘good job’ is enough, I don’t think he will announce such huge budget.. although he received many awards both local and international level, he is still doing his best for this state.. congratulation MA!!


  16. Anonymous says:

    Well, applaud for that.


  17. winie says:

    terpulang kepada pendapat masing2…bagi saya…harap bajet ini akan dapat memberi peluang yg leih baik kepada kita rakyat sabah…dan ekonomi pun semakin meningkat..


  18. erra says:

    sebab mau cari peluang yg lebih besar la ba durang pigi sna…. cari pengalaman…..jangan fikir negative ja ba….


  19. Risad G. USA says:

    Nothing but horse shit. The qualification you made at the end says it all. The rich and the powerful gerts richer while the poor get the crumbs if any. If there is any truth in this article, why are Sanahan youths flockiing to the Peninsula and Singapore for jobs ?


  20. owen says:

    Harap bajet ini akan memberi banyak manfaat kepada negeri kita…


  21. lan says:

    Berpandangan jauh, tidak semestinya dilihat sebagai negeri termiskin, kita tidak boleh maju, dengan adanya bajet ini, harap pembangunan dapat dijalankan mengikut apa yg di rancang..


  22. Anonymous says:

    The biggest ever.


  23. mimie says:

    semoga lebih banyak pembangunan dapat dilihat dan ekonomi juga menjadi semakin baik.


  24. mimie says:

    harap semua sasaran akan dapat dicapai dan pembangunan dilaksanakan dengan lancar.


  25. Anonymous says:

    semoga apa yang dijanjikan, akan ditunaikan nanti


  26. Anonymous says:

    jikalau kerajaan negeri ikhlas, sudah tentu rakyat Sabah akan berterima kasih dengan adanya peruntukan ini.


  27. Anonymous says:

    harap Sabah dapat membangun dengan pesatnya…


  28. Anonymous says:

    semoga dengan adanya peruntukan ini nanti, Sabah tidak lagi disenaraikan negeri termiskin di Malaysia


  29. Anonymous says:

    harap saluran peruntukan ini dapat digunakan sepenuhnya untuk pembangunan Sabah tanpa adanya penyelewengan kuasa/rasuah…


  30. supra says:

    harap dgn ini, usaha pembangunan Sabah akan lebih muda dilakukan, Sabah pasti akan membangun lebih pesat selepas ini.


  31. supra says:

    bajet ini amat wajar kerana Sabah perlukan byk pembangunan.


  32. Kris Jr says:

    Hope Sabah 2012 budget will bring positive development to State.


  33. Anonymous says:

    Hope Sabah 2012 budget will bring positive development to State.


  34. Peng Sen says:

    Semoga peruntukan yang diberi 100% sampai ke tangan negeri Sabah. Projek pembangunan harus dijalankan dengan lancar dan kontrak harus diberi kepada kontraktor yang boleh dipercayai.


  35. Zack says:

    Usaha Musa dalam pembangunan negeri Sabah amat dihargai. Tidak perlu teramat bangga dengan pencapaian tersebut sebab Sabah masih banyak diperlukan perubahan dan prkembangan khas kawasan pedalaman.


  36. Khairul says:

    “I must qualify this story. Fast growth in poor states does not automatically mean that growth has reached all poor people.”

    Betul katanya, perkembangan bagi negeri termiskin tidk harus dilihat pada masa setahun atau 2, seharus berpandangan jauh, perkembangan berterusan harus ada.


  37. says:

    Prioritise the project. Project that encourage improvement and economy growth should be prioritised.


  38. Anonymous says:

    Semoga bujet 2012 dapat dilaksanakan tanpa penyelewengan dan rasuah.


  39. walao says:

    Harap Sabah boleh menarik lebih banyak pelabur FDI untuk melabur dalam negeri Sabah supaya ekonomi Sabah dapat membangun dengan lebih pesat lagi.


  40. walao says:

    Diharapkan peruntukan ini boleh digunakan sebaik mungkin untuk pembagunan Sabah.


  41. Ibrahim Kindat Dusun Tuaran says:

    Ketua Menteri Musa Aman has done a good job but still not enough to change the livelihood of Orang Kampong who are still very poor. Come to Tuaran and see for yourself how much poverty the Lotuds are facing since Independence. Nothing has change, we are still suffering, we are still below poverty. Politicians come during elections and give us RM50 and they think they have solved all our problems, we the Lotuds have been taken for a ride.


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