KUCHING: Sarawak and Sabah should be allocated bigger development funds considering their unique characteristics and contributions to the country.
Senior lecturer at Faculty of Economics and Business, Universiti Malaysia Sarawak (Unimas) Dr Dzul Hadzwan Husaini said these states are substantial contributors to the nation’s revenue, with about two-thirds of the country’s oil and gas production originating from the Borneo region.
Furthermore, Sarawak ranks as the third-highest contributor to the national gross domestic product (GDP).
He added that their vast land areas and decentralised population distribution also necessitate significant investments in infrastructure to ensure connectivity and economic development for all citizens.
“I’m trying to convey that Sabah and Sarawak have given the country a sizable amount of income.
“A substantial investment in infrastructure is required to guarantee that entire populations can be connected easily and economically.
“Without a comprehensive infrastructure, there will be some people left behind,” he said to New Sarawak Tribune following the announcement of Budget 2024 by Prime Minister Datuk Seri Anwar Ibrahim on Friday.
The federal government has earmarked RM5.8 billion for Sarawak and RM6.6 billion for Sabah, indicating a marginal increase from the previous year.
The economist pointed out the significance of considering operating expenditure, encompassing salaries for public employees such as the police, army, nurses and doctors, who play vital roles in Sarawak and Sabah.
Additionally, he highlighted a subsidy programme, the “community drumming” initiative, intended for rural areas in these states, bringing the total allocation to over RM12.4 billion.
On the same note, he emphasised the potential spill-over effects of a comprehensive budget on Sarawak’s economy.
He cited examples of successful programmes like TEKUN and Amanah Ikhtiar Malaysia (AIM), which provide funding to small businesses.
“Undoubtedly, many Sarawak participants benefit from this programme. Their business activities are anticipated to have an indirect positive spill-over impact on Sarawak’s economy,” he added.
While acknowledging the federal government’s discretion in budget allocation, Dzul maintained faith in Sarawak’s potential to drive growth and prosperity for its citizens.
He emphasised the importance of respecting the Malaysia Agreement 1963 (MA63) and the Federal Constitution, which delineates responsibilities between the federal and state governments.
“What matters fall under federal accountability and what matters fall under state accountability are both spelt out in the constitution,” he stressed.
