Why no funds ahead of shift of Indonesian capital, asks Sabah economist

Why no funds ahead of shift of Indonesian capital, asks Sabah economist

Economist hopes future government allocations will take advantage of this major new development.

The government is committed to completing the Pan Borneo Highway project to promote greater economic growth in Sabah and Sarawak.
KOTA KINABALU:
A political economist is disappointed that the 2020 Budget has not  allocated more funds to help Sabah profit from Indonesia’s relocation of its capital to Kalimantan.

Firdausi Suffian said although Finance Minister Lim Guan Eng touched on the Trans-Borneo Highway, connecting Sabah and Sarawak to east Kalimantan, no further budget was provided to assist the state build business relations with its next door neighbour.

“Even the details of this highway are unclear. It’s the same thing with the Pan Borneo Highway project.

“Sabah needs funds to help develop its business infrastructure as well as its downstream industries to grow the business ecosystem in the state so we can capitalise on the Kalimantan move.

“But to be fair, the relocation of Indonesia’s capital was only announced months ago. So maybe they’re planning other developments in future,” said the Sabah UiTM administrative and policy studies lecturer.

Economist Firdausi Suffian hopes funds will be allocated soon for the Trans-Borneo Highway, connecting Sabah and Sarawak to east Kalimantan.

When tabling the budget yesterday, Lim said the government was committed to completing the Pan Borneo Highway project, planned as an important catalyst for economic growth in Sabah and Sarawak.

He said the savings from the on-going cost rationalisation is RM1.2 billion so far, adding this has reduced the project cost to RM29 billion.

“What is saved now will allow us to plan for even more projects to spur economic growth, including in Sabah and Sarawak, such as the 165km Trans-Borneo Highway.

“An important component of this project is the package worth RM600 million for the 40km Jalan Kalabakan-Serudong stretch and the construction of the customs, immigration, quarantine and security complex (CIQS) and government housing quarters.”

Firdausi, meanwhile, welcomed the increase in development expenditure amounting to RM5.2 billion for Sabah next year as well as the doubling of the special grant from RM26.7 million to RM53.4 million.

“Such a move is unprecedented but still the 20% oil royalty payment request has not been met.

“We were told it’s not workable before but the government needs to explain why and also suggest an alternative,” he said, referring to Prime Minister Dr Mahathir Mohamad’s previous remarks on the PH election pledge.

“The demands from Sabahans are clear,” he added.

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