KUCHING: The elusive 40 per cent net revenue entitlement remains the only “golden goose” capable of triggering a transformative economic situation in Sabah, according to University of Tasmania Professor Dr James Chin.
He said that without securing this constitutional right, any discourse regarding Sabah emulating Sarawak’s rapid economic rise remains a distant reality. He noted that unlike Sarawak, which has successfully diversified its income streams, Sabah’s options for immediate fiscal expansion are severely limited.
“The only way for Sabah to transform its economy is if it gets 40 per cent. But it appears to me that the 40 per cent thing is not moving, partly because Sabah’s government is not strong enough to confront the federal government, despite the ongoing court case,” he told Sarawak Tribune when contacted, commenting on remarks made by Domestic Trade and Cost of Living Minister Armizan Mohd Ali, who said the Sabah government is looking to adopt the approach used by Gabungan Parti Sarawak (GPS) in strengthening revenue generation and delivering assistance to the people.
He said that alternative revenue policies would lack the immediacy required for a total economic overhaul, noting that any new policies put in place now would take at least 12 to 24 months to generate results. According to him, the fastest way to bridge the fiscal gap remains the 40 per cent payout.
Addressing the sentiment that Sabah should follow Sarawak’s development blueprint, Dr Chin cautioned that the two Bornean states operate under vastly different economic structures.
He specifically highlighted that Sabah’s oil and gas industry is not as sophisticated as Sarawak’s, which makes raising additional domestic capital more difficult for the Land Below the Wind.
While acknowledging these hurdles, Dr Chin suggested that Sabah could find internal fiscal relief by addressing administrative inefficiencies.
He pointed out that the leakage from government spending in Sabah is significantly higher compared to Sarawak.
“If they can stop some of these leakages, they will actually get more value out of their money,” he remarked.
However, Dr Chin maintained that as long as the federal government withholds the 40 per cent entitlement, all talk of emulating Sarawak’s success will likely not work.
