Time for Sabah to get larger special grant
KOTA KINABALU: Sabah will be entitled to a larger amount of the annual special grant if the Federal Government accepts Minister of Special Tasks cum Liberal Democratic Party (LDP) president Datuk Teo Chee Kang’s call to review and revise the special grant, said LDP secretary general Datuk Yong Wui Chung.
Yong said increment in the special grant could be used to significantly improve basic infrastructure and well-being of the people in Sabah.
As stated in Article 112C of the Federal Constitution, Sabah is entitled to an annual special grant equivalent to 40 per cent of the increase in net revenue derived by the Federal Government from Sabah.
“As provided in Article 112D, such special grants are subject to mandatory review by the Federal Government and State Government every five years and failure to do so is in breach of the Federal Constitution.
“As pointed out by our party president in the LDP Congress recently, there has not been any review since the first review in 1969 where the amounts for the subsequent five years were determined.
“Because of that, the amount of the annual special grant for Sabah remains at RM26.7 million from 1974 till today,” Yong said in a press statement issued yesterday.
As such, Yong urged the Federal Government to restore the mandatory review as provided in the Federal Constitution.
“It is one of the conditions agreed upon for Sabah during the formation of Malaysia.
“The fact that there has been no review on the special grant since 1974 is in breach of the Federal Constitution and thus should be rectified.”
Yong also hoped that Barisan Nasional (BN) component parties could back LDP’s call for the mandatory review in order to improve the well-being of Sabahans.
“I believe the increase in the special grant will allow the State to implement more development plans, including building and repairing interior roads, improve water and electricity facilities as well as enhance traffic system in the city and major towns.”
On the other hand, Yong also concurred with Teo’s proposal for the Federal Government to transfer its entitlement of five per cent cash payment of the gross value of oil production in Sabah to the State, thereby increasing the State’s entitlement to 10 per cent.
He said Sabah lagged behind Peninsular Malaysian states in terms of basic infrastructure and economy due to insufficient allocation provided for the State, which hindered the State Government’s effort to develop interior districts and small towns in Sabah.