Federal gov't allocates over RM858 mln for Pahang road infrastructure projects
KUANTAN: The Federal Government has allocated more than RM858 million under the Fifth Rolling Plan (RP5) of the 12th Malaysia Plan (12MP) for Pahang to implement road infrastructure projects.
State Public Works, Transport and Health Committee chairman Datuk Razali Kassim said the funds were channelled through the Ministry of Works to implement two road upgrading projects involving allocations of RM100 million and RM124.82 million.
He added that RM320 million was also channelled through the Ministry of Rural and Regional Development for five other projects, including the upgrading of Jalan Pos Sinderut in Lipis.
'All these projects are at the Public Works Department design stage,' he said when winding up the debate on the motion of thanks for the royal address at the State Legislative Assembly sitting at Wisma Sri Pahang here today.
On healthcare, Razali said RM28.98 million has been allocated for 40 dilapidated clinics in the state, involving 12 demolish-and-rebuild projects and 28 repair and upgrade works, all of which are underway and expected to be completed by November.
In response to complaints that the Sultan Haji Ahmad Shah Hospital in Temerloh only has six Intensive Care Unit (ICU) beds, he said the claim was unfounded, adding that the hospital provides critical care services with 18 ICU beds for adults and 31 Neonatal ICU beds for infants.
Meanwhile, state Welfare, Women and Family Development Committee chairman Datuk Sabariah Saidan said that, as of March, the Social Welfare Department (JKM) has provided monthly financial aid to 30,456 recipients in Pahang.
She said the temporary financial assistance initiative involved an expenditure of over RM14 million and aimed to help individuals or families in need to have a better quality of life.
State Local Government, Housing, Environment and Green Technology Committee chairman Datuk Mohammad Fakhruddin Mohd Ariff said the state government planned to establish another Seladang Conservation Centre at Jalan Bukit Rengit, Lanchang.
'The Wildlife Department is in the process of applying for funding under the 13MP for the project. If approved, there will be two seladang conservation centres in Pahang, strengthening ex-situ conservation efforts,' he said.
He added that the state government would also continue with phase 6 of the Pahang People's Housing programme this year, with a total of 470 housing units to be developed at a value of RM36 million.
The sitting resumes tomorrow.
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Options on honouring 40pc entitlement
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It is essential to emphasise that the 40% entitlement is distinct from the Federal Government's other obligations to Sabah under the Federal Constitution, such as development funds. These are separate commitments, and the entitlement under MA63 should not be mixed with broader Federal allocations. A range of innovative mechanisms can be employed to fulfil this legal obligation while ensuring equitable development across Malaysia. Advertisement 1. Phased Instalment Payments A structured instalment plan would allow the Federal Government to meet its obligation to Sabah while mitigating any immediate financial burden. This approach could mirror how large-scale infrastructure projects in Peninsular Malaysia are prioritised. Key features: Gradual Payment Structure - Payments could be spread over 10 to 20 years, starting with smaller instalments and gradually increasing over time, allowing the Federal Government to manage its fiscal obligations more effectively. Interest on Delays - Should payments be delayed, interest could accrue, ensuring Sabah is not unfairly penalised by any Federal fiscal management issues. 2. Interest-Free Development Loans or Grants In lieu of direct payments, the Federal Government could offer Sabah interest-free loans or grants earmarked for critical development projects, such as infrastructure, healthcare, and education. Considerations: Targeted Development Funding - These funds could be directed towards sectors where Sabah is underdeveloped, providing an immediate boost to the state's growth. Offset Against Entitlement - The value of these loans or grants could be deducted from the total entitlement, allowing for progress towards fulfilling the obligation while directly benefiting Sabah's development. 3. Transfer of Oil and Gas Fields Transferring ownership and control of oil and gas fields within Sabah's territorial waters would provide the state with a direct revenue stream from its natural resources, fostering long-term economic autonomy. Key aspects: Full Ownership - By gaining full control of its oil and gas fields, Sabah could generate significant revenue from resource extraction, with the profits offsetting the Federal Government's 40% obligation. New Resource Exploration - The right to explore and develop new fields could ensure sustainable future revenue for the state, reducing dependence on Federal transfers. 4. Transfer of Federal-Owned Land A feasible option to reduce the Federal Government's financial burden would be the transfer of Federal-owned land in Sabah, particularly those with high economic potential, to the state government. Advantages: Strategic Land Transfers - Economically valuable land could be surrendered to Sabah, enabling the state to generate revenue through development or other uses. Offsetting the Amount Owed - The value of the transferred land would be credited against the 40% entitlement, providing an immediate means of fulfilling part of the obligation without direct cash payments. 5. Revenue-Sharing from Federal Investments Revenue-sharing arrangements for Federal projects in Sabah would ensure that the state benefits from economic activities generated within its borders, particularly in key sectors such as tourism and agriculture. Key considerations: Profit-Sharing Models - Federal enterprises operating in Sabah, such as airports, and tourism developments, could share a portion of their profits with the state. Sector-Specific Revenue - Industries crucial to Sabah's economy could be prioritised for revenue-sharing, ensuring that local resources and projects directly benefit the state. 6. Enhanced Tax Autonomy Granting Sabah greater autonomy in tax collection, particularly in sectors such as tourism and natural resources, would reduce its dependence on Federal transfers and ensure that the state benefits more directly from its own economic activities. Considerations: Exclusive Taxing Authority - Sabah could be given exclusive rights to tax specific industries, ensuring that revenue generated within the state remains in the state. Increased Royalties - The Federal Government could increase Sabah's share of oil and gas royalties from the current 5% to a more equitable level, providing an additional revenue stream. 7. Issuance of Federal Bonds or Sukuk The Federal Government could issue bonds or sukuk (Islamic bonds) specifically designed to fulfil Sabah's entitlement. This would provide immediate funds for development while allowing the Federal Government to spread the repayment over time. Mechanics: Entitlement-Backed Bonds - Bonds linked to Sabah's 40% entitlement would provide upfront financing, allowing for immediate development projects, while the Federal Government repays bondholders over a set period. Sukuk Option - Bonds backed by Federal assets in Sabah could comply with Islamic finance principles, offering an ethical and sustainable method of financing the entitlement. 8. Equity Participation in Government-Linked Companies Sabah could be granted equity stakes in Federal Government-linked companies (GLCs) such as Petronas or Tenaga Nasional Berhad (TNB). These stakes would provide the state with a recurring revenue stream through dividends. Key features: Equity Stakes - Shares in key GLCs would enable Sabah to receive regular dividend payments, which could then be deducted from the overall entitlement. Dividend-Based Fulfilment - Regular dividend payments would serve as an alternative to direct cash transfers, offering a sustainable source of income. 9. Performance-Based Entitlement Adjustments A portion of the entitlement could be linked to Sabah's economic performance, incentivising both the Federal and Sabah state governments to focus on growth-oriented policies. Benefits: Development Incentives - Tying part of the entitlement to key performance indicators, such as GDP growth or infrastructure improvements, would promote long-term development in Sabah. Joint Investment Projects - Federal and State Governments could collaborate on large-scale projects, with profits reinvested into fulfilling Sabah's entitlement. 10. Dedicated Federal Development Funds A one-off, dedicated allocation of Federal development funds to Sabah would provide long-term stability for critical infrastructure projects, separate from the annual budget allocations, and ensure continuity in development initiatives. Key elements: Fully Allocated Funds - Unlike regular budgetary allocations, these development funds would be transferred entirely to Sabah, providing the state with full control over long-term infrastructure projects. Priority Sectors - The funds could be earmarked for essential sectors such as transport, rural electrification, and industrial growth, ensuring that Sabah's development progresses at a comparable rate to Peninsular Malaysia. Concluding Remarks The Federal Government's claim of financial incapacity to meet Sabah's 40% entitlement is more about prioritisation than genuine fiscal limitations. By adopting innovative mechanisms—such as phased instalments, land transfers, or equity stakes—the Government can fulfil its legal obligation while simultaneously supporting Sabah's development. 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