I REFER to your report “Federal spending in Sabah exceeds revenue: Treasury” (Nov 4)
Treasury Sec-Gen Datuk Johan Mahmood Merican said that “federal expenditure in Sabah actually exceeds the amount of revenue collected from Sabah”.
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He said the federal spending in Sabah in 2026 would be RM17 billion, significantly exceeding the estimated RM10 billion in revenue generated from Sabah which also includes the 5pc petroleum royalty.
RM9 billion of the RM17 billion is for operating expenditures – for schools, hospitals, clinics, police and others. RM6.9 billion is for development expenditures which includes RM1.67 billion for Pan Borneo (which is a federal project); RM1.90 billion for electricity supply to Sabah (partly under federal jurisdiction) and Labuan (a federal territory). In essence, not much left for truly Sabah projects.
The taxes received by the federal government include taxes paid in Sabah (income tax, corporate, custom, sale taxes and others) and income taxes paid in KL by big oil palm plantations, by Petronas and others. Certainly, that’s much more than RM10 billion.
Johan said the RM600 million for 2026, as an interim payment of the 40pc revenue share, represents a drastic increase compared to the stagnant RM26.7 million yearly rate since 1973.
He forgets that the KK High Court’s decisions two or three weeks ago ordered that the federal and Sabah governments must have a fresh second constitutionally mandated review by 90 days after the date of the Court ruling and must have a decision on how to return to Sabah the 40pc net revenue share since 1974.
Where has Sabah’s 40pc revenue share gone to since 1974? Long time passing. Long time ago.
Before 2012:
- Money for Petronas twin towers: RM6 billion
- The North-South Express Highway: RM1 billion by government
- Cost of creation of Putrajaya: RM34 billion (1995-2019)
- Penang second bridge: RM4.8 billion
[Total = RM45.8 billion]
BRIM [Bantuan Rakyat 1 Malaysia] was introduced in
2012 RM2.6 billion
2013 RM3.0 billion
2014 RM4.6 billion
2015 RM4.9 billion
2016 RM5.4 billion
2017 RM6.8 billion
Bantuan Sara Hidup (BSH)
2018 and 2020 RM14 billion
Bantuan Keluarga Malaysia (BKM)
2021 RM8.2 billion
2022 RM8.2 billion
[Total BRIM, BSH and BKM spent: RM57.7 billion]
Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA – an additional program to STR)
Total STR/SARA budget for 2023 was RM8 billion; 2024 was RM10 billion; 2025 was RM13 billion
RM2 billion added for 2025 (September to December) for the one-off RM100 for each citizen aged 18 and above, regardless of income.
[Total STR and SARA spent: RM33 billion by 2025]
Since 2012, (RM57.7 + RM33) = RM90.7 billion spent on cash bantuan. It is Sabah’s 40pc money to run all the above programs benefiting 90pc of non-Sabahans.
(Malaysian citizens in Sabah are about 10pc of the total Malaysian citizens.)
For 2026 budget:
RM15 billion for STR/SARA programs and RM4 billion for Bandar Madani.
[Kota Madani to be built in Putrajaya with a budget of, starting 2025, aiming for completion by late 2027.]
The Federation has been surviving and thriving on Sabah’s 40pc of the revenue share. And, please take note that Tengku Razaleigh Hamzah did disclose few years ago that RM40 billion of Petronas income were channelled to Umno yearly – for Party expenses and individual Umno leaders?
Malaya is well developed – the North-South Highway, the Penang’s second bridge, the Petronas twin-towers, uninterrupted electricity and clean water supply, 5-G network, well equipped hospitals and countless Universities. Numerous industries. What has Sabah got?
We must get our legitimate property (money) back, with interests. We need the money to save Sabah from being stagnant or getting worse in every aspect of our existence and wellbeing.
Based on 1969’s RM50 million being the net revenue received by KL from Sabah and RM10.2 billion being the amount in 2023 (announced by PMX in Kota Kinabalu in mid-2024), the rough amount of the net revenue received per year between these two years can be found by interpolating these two figures.
At least RM350 billion is owed by the Federation, including the annual 5pc compound interests. This is not including the taxes paid directly at KL by the big companies, including the oil and gas industries operating in Sabah.
The 40pc is not Bantuan, not a charity handout, but is our money owed by the Federation.
We need our money badly to run and develop our territory. It is the foundation of faith and trust on which Malaysia was formed.
Dr Chong Eng Leong
Ex Senator
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