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Datuk Patinggi Tan Sri Abang Johari Tun OpengAdvertisement
By Shikin Louis
KUCHING, Feb 13: Sarawak has proposed a formula under which approximately 20 per cent of the State’s tax revenue would be channelled back as the special grant under Article 112D of the Federal Constitution.
Premier Datuk Patinggi Tan Sri Abang Johari Openg said the proposal was submitted in line with constitutional provisions requiring the special grant to be reviewed periodically, noting that such revisions had not been carried out for many years.
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“Under Article 112D, the grant is supposed to be revised every few years, but for a long time there has been no revision. So Sarawak suggested a formula based on our revenue contribution; perhaps 20 per cent.
“If our revenue is higher, the amount returned should be higher. If it is lower, then the amount should be lower. That is our proposal, and it appears they are considering it,” he told reporters when met at the handing-over of house keys ceremony for recipients of the Santubong Rumah Spektra Permata (RSP) Project here today.
He was responding to a recent statement by the Ministry of Finance Malaysia (MOF) that the federal government would negotiate with the Sarawak government this year to establish a new method for calculating the State’s special grant, taking into account Sarawak’s service cost needs and the federal government’s financial position.
Commenting on whether the current RM600 million interim allocation was sufficient, Abang Johari said the amount was inadequate given Sarawak’s growing financial commitments, particularly in funding major infrastructure and public facilities.
“RM600 million is not enough. We bear the cost of houses and bridges. We also fund the cancer centre. But Sarawak is fortunate to have some resources and does not depend entirely on others. What matters most is the people,” he stressed.
On whether Sarawak would be required to repay previous allocations, Abang Johari clarified that grants do not require repayment, unlike loans.
“A grant does not have to be paid back. A loan must be repaid.
“The cancer centre, for example, is not given for free. It has to be repaid. At this time, we have the means, so we help. There may come a time when our resources decline and others will help us,” he emphasised. – DayakDaily
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