Sabah tables surplus Budget for 2022; bonus for state civil servants in January

Chief Minister Datuk Seri Hajiji Noor tables the Sabah state Budget 2022 at the Sabah State Legislative Assembly in Kota Kinabalu, December 3, 2021. — Bernama pic
Chief Minister Datuk Seri Hajiji Noor tables the Sabah state Budget 2022 at the Sabah State Legislative Assembly in Kota Kinabalu, December 3, 2021. — Bernama pic

KOTA KINABALU, Dec 3 — The Sabah government today tabled a surplus state Budget of RM110.68 million for 2022.

It proposed RM4.596 billion on state expenditure as it estimates revenue to roll in at RM4.707 billion.

Sabah Chief Minister Datuk Seri Hajiji Noor also announced that the state achieved a higher revenue collection than estimated for this year, resulting in a record collection estimate for the state at RM4.912 billion.

“We are grateful as the average price of crude palm oil and crude petroleum oil are higher than the price forecasted in the year 2021 Revenue Estimates. As a result, the year 2021 Revised Revenue Estimates is expected to have an increase of 9.6 per cent or RM430.67 million, as compared to the original revenue estimates.

“This means that year 2021 will craft a new history for Sabah with the highest state revenue estimates since independence totalling RM 4.912 million,” he said.

The state initially projected to collect RM4.48 billion in revenue this year.

“The other factor that also contributed to the increase in year 2021 revenue was the State Sales Tax payment for oil and gas products. Thus, I would like to express my appreciation to the oil and gas companies, especially Petronas for their commitment in tax payment,” he said.

The sales tax for oil and gas products was initiated in 2019 but Petronas only began payment this year.

Hajiji said the state and Petronas have finalised their Commercial Collaboration Agreement after long negotiations, and that it will be signed in the near future.

“After a long time of legacy issues related to the Petroleum Development Act 1974 underlying our oil and gas related issues, this agreement will bring greater value and meaning to Sabah. Sabah will get greater revenue sharing, greater participation and greater say in oil and gas related matters.

“The state government has agreed for Petronas to build a liquefied natural gas facility based on the nearshore concept which will be the first in the state.

“In addition, Sabah will also have gas allocations to support downstream industries in the state,” he said.

Hajiji, who is also state finance minister, said that Sabah’s economy, although still recovering from the pandemic, is expected to grow between 4 and 4.5 per cent next year with the implementation of various high-impact projects that become the flagship of the SMJ Roadmap Plan.

“Among the three new initial investments that has been sealed on March 22, 2021 are the Copper Foil Manufacturing Plant Construction Project in Kota Kinabalu Industrial Park worth RM4.2 billion, the Lok Kawi Resort Town Project with a Gross Development Value of RM7 billion, and the Coconut Processing Plant Project in Pitas with an investment value of RM200 million.

“Larger-scale projects through federal government allocations such as the Sepanggar Bay Container Port Expansion Project and several Pan Borneo Highway project packages as well as projects under the Rural Roads Program that are being implemented will help to stimulate the economy,” he said.

He also announced a half-month salary, with a minimum of RM1,000 for all 20,271 state civil servants to be paid in January 2022.

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