8/14/2019 Press Release 2013: Imagine Musa Tabling a RM40 Billion 2014 Sabah Budget 13 Nov 2013

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PRESS STATEMENT

Imagine Musa Tabling a RM40 Billion 2014 Sabah Budget Dr.

Jeffrey

Kota Kinabalu: The Chief Minister should be able to table a record-breaking RM40 billion Sabah

Budget for 2014, if the calls by Malay ultras to chase out Christian Malaysians and Sabah out of the

Federation are realized before year-end said Datuk Dr. Jeffrey Kitingan, STAR Sabah Chief, rueing

what could happen to the Sabah economy for 2014 with the CM due to present the 2014 State

Budget .

The RM40 billion budget, a ten-fold increase from the historical RM4.048 billion spent for 2013, will

set Sabahs economy into lift-off into the super league of wealthy nations.

It may be a record of sorts but RM40 billion revenue is a conservative estimate. Oil revenue will

contribute RM20 billion, half of the total revenue, which is not unexpected given the current world

oil prices of above USD100 per barrel. The federal tax department announced it could collect up to

RM40 billion for 2013 from Sabah.

Add to it, all the federal departmentscollections from Sabah could be another several billion ringgit.

The corporate sector could contribute many billions more now that they will have to pay tax on

revenue based on income derived from Sabah. Palm oil revenue could be very significant as Sabah is

the worlds third biggest producer of crude palm oil, about 36% of Malaysia s total of about RM73

billion a year.

Local contribution of State revenue is estimated another RM2.4 billion based on 2013 s estimated

revenue of RM3.828 billion inclusive of RM1.42 billion from federal coffers. In fact, looking at the

figures, the 2014 Budget could exceed RM60 billion all in.

For 2013, the estimated expenditure was RM663.17 million for emoluments, recurrent expendituresof RM1,087.93 million and special expenditures of RM2,337.38 million (which formed the bulk of the

RM2.42 billion development expenditure).

Giving a 6% increase, the emoluments will rise to RM702.96 million and RM1,153.21 million for

recurrent expenditures, totalling RM1,856.17 million.

To create a quantum leap in the economy and development, each of the 60 Constituencies could be

allocated RM300 million each (RM25 million per month), totalling RM18 billion, a 7-1/2 times

increase from 2013. In other words, Sabah will get development in a single year of what would take

7-1/2 years to achieve given the 2013 Budget. And to alleviate the peoples financial position, each

of the 3.2 million Sabahans will be given a RM1,000 special dividend which will utilize another RM3.2billion.

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8/14/2019 Press Release 2013: Imagine Musa Tabling a RM40 Billion 2014 Sabah Budget 13 Nov 2013

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The total Budget expenditure will total RM23.05717 billion leaving a surplus of RM16.94283 billion.

Assuming Sabah takes back control of the security forces comprising some 16,000 police, PGA and

maritime personnel, which may cost Sabah another RM600 million. Putting aside RM1.0 billionshould be able to cover the additional costs of assuming State control of the security forces including

5,000 army personnel.

That would still leave a healthy and hefty RM15.94 billion to be added to Sabahs reserves which is

said to be about RM3 billion currently.

Even with prudent financial planning, Selangor, the richest Malaysian state only managed to increase

its State reserves from RM700 million in 2008 to RM3 billion in 2013.

Imagine RM15.94 billion reserves in 2014 alone, Selangor would seem poor in comparison and

probably take another 20 years to catch up. The RM15.94 billion reserves will result in each andevery Sabahan having a healthy credit balance of RM4,981 compared to the national debt of some

RM600 billion or RM21,000 debt for every Malaysian.

In fact, Sabah would be in the company of Singapore and Brunei. Speaking of Brunei, petrol and

diesel price in Sabah could be at RM1.35 per litre, equivalent to Brunei.

The RM40 billion Budget is not wishful thinking. It will be reality if the federal government agree

with and allow the Malay ultras to succeed in chasing out Sabah from the Federation. Its something

for each and every Sabahan to ponder on.

Datuk Dr. Jeffrey Kitingan

Chairman, STAR Sabah

13 November 2013