State finance minister Masidi Manjun said the establishment of the fund was an initial preparation to keep the annual funding from the federal government that had not been used, if it was allowed to do so.
He said the fund could also include donations from the state government, agencies, the corporate sector, non-governmental organisations and private citizens.
According to Masidi, the special trust fund would assist the state government in carrying out various programmes, such as disaster relief work.
“The fund can also be used for poverty eradication programmes, the provision of social facilities such as for education and health, the construction and maintenance of roads and slopes, water and electricity as well as other development,” he said when tabling the bill.
During the debate session, opposition leader Shafie Apdal (Warisan-Senallang) backed the fund, saying that it would bring many benefits to the state and its people.
Masidi said all funding channelled to Sabah should be managed by the state and not held by other parties.
“(Based on) track records, development projects (announced) are not 100% completed (within that year), which means only part of the funding was used, and the finance ministry held the rest. This worries us.
“If the funding is for Sabah, let it not be held by Putrajaya (federal government)… let the state manage it to ensure the projects can be implemented,” he said.
However, Shafie suggested that there should be specific conditions regarding the distribution of allocations from the fund.
When winding up the debate, Masidi said the fund’s establishment goes beyond politics and would ensure that all development funding for Sabah remained in the state.
“I am grateful to everyone and Shafie (as Semporna MP) for wanting to bring this matter to Parliament.
“I hope all 25 Sabah MPs can give their support for the sake of Sabah. We may have different political views, but all of us want Sabah to advance,” he said, adding that the Sabah government was still negotiating with the federal government to keep the funds in the state.
The bill was passed before Speaker Kadzim M Yahya adjourned the sitting until tomorrow.