Institute for Development Studies (IDS) chairman Simon Sipaun said equal partnership promised to Sabah and Sarawak meant it had to be reflected through the budgets given to the states.
Speaking at a panel discussion on “Net Revenue Sources in the MA63” here today, Sipaun said Sabah and Sarawak had constantly found themselves on the fringes when it came to funds.
For example, in the 2019 budget, Sabah was only given RM4.8 million even though the state needed a substantial amount of funds to develop its land, which is a lot bigger than several peninsula states combined.
He said the peninsula was significantly developed compared with Sabah and Sarawak, and that Sarawak was almost the size of the peninsula.
“Sabah continues to be shortchanged, poor and underdeveloped compared with the peninsula. Yet Sabah is rich in natural resources including oil and gas.
“I don’t believe this is what Sabah’s founding fathers expected some 56 years ago when a new country called Malaysia was formed on Sept 16, 1963. Otherwise, what was the point of being part of it?” he asked.
Commenting on the 40% return of net revenue derived from Sabah, Sipaun said the state government should insist on a time frame for the payment of arrears from the federal government.
Proponents of MA63 and Sabah rights activists have insisted that the federal government pay back the arrears accumulated over the years since it had failed to properly reimburse Sabah.
The former Sabah state secretary recalled his time at the state finance ministry between 1981 and 1988 where the net revenue was interpreted by federal officials as the revenue collected by the federal government in Sabah, minus the amount spent on Sabah.
“To us at the state level, it had nothing to do with the amount spent on Sabah because it was the responsibility and obligation of the federal government.
“These are two separate issues altogether. Unfortunately, the federal officers acted based on their interpretation. My question is where do you go for legal redress?
“If you are referring to Malaysian courts then why is this course of action not being taken? Hopefully, things have changed for the better now especially under the so-called ‘Malaysia Baru’,” he said.
He pointed out that Sabahans had high hopes the current state and federal governments would give them a fairer deal on this matter.
He also called upon the state government to revisit the Petroleum Agreement 1976 to check on its validity since it was never ratified by the state legislative assembly.