RANAU: Sabah and Sarawak remain less developed compared to Peninsular Malaysia, particularly in infrastructure such as road conditions and, therefore, require continued support.
“Subsidies are important as recognition of our infrastructure gaps and socio-economic realities, noting that Sabah continues to record among the highest poverty rates in the country,” said State Finance Minister Datuk Seri Masidi Manjun.
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Masidi also highlighted that Sabah and Sarawak are Malaysia’s main oil-producing regions, a factor often overlooked in national discourse.
“The oil wealth from Sabah and Sarawak has contributed significantly to the development of other states. In that sense, it is not unreasonable for subsidies to continue as recognition of that contribution,” he said at a Hari Raya thanksgiving.
At the same time, he acknowledged that sustaining subsidies is becoming increasingly difficult due to global pressures, including rising oil prices and geopolitical conflicts such as tensions in the Middle East.
“If such conflicts continue, they will eventually affect the government’s ability to maintain subsidies,” he said, referring to recent reductions in subsidised fuel quotas from 300 litres to 200 litres.
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Masidi urged the public to view these measures positively, stressing that shared sacrifice is necessary during challenging times.
“This is a global issue. Compared to other countries facing severe fuel shortages, Malaysia is still relatively stable,” he said.
At the federal level, the Cabinet has begun reviewing the financial implications of rising fuel costs.
A special committee under the Ministry of Finance has been established to reassess government commitments and evaluate whether intervention is needed, particularly for infrastructure projects.
According to Masidi, projects involving roads, water supply and other essential services are at risk of delays as rising costs render existing contract values insufficient.
“If no adjustments are made, projects may be delayed or abandoned. Our priority is to ensure they are completed so the people can benefit,” he said, adding that rigidly enforcing outdated contract terms could stall development entirely.
The Cabinet recently agreed for the Ministry of Finance to evaluate affected projects, with a focus on ensuring continuity through possible cost adjustments or intervention mechanisms.
Environmental concerns were also raised, particularly regarding proposed developments near Mount Kinabalu, including a potential cable car project.
Masidi stressed that any development must not compromise the integrity of the Unesco World Heritage site.
“This is not just about profit. There are values more important than money. Mount Kinabalu is a symbol of Sabah, and it must be protected,” he said, noting that feasibility studies are ongoing to determine whether such projects are appropriate.
As Sabah navigates post-election recovery, economic pressures, and development ambitions, the Ranau gathering delivered a clear message, that unity, fair resource distribution, infrastructure progress, and heritage preservation must move forward together.
