Warisan chief slams Sabah govt's ‘record' RM6.4b budget, warns of financial risk tied to oil prices
KOTA KINABALU, May 14 — Parti Warisan president Datuk Seri Shafie Apdal has raised concerns over the Sabah state government's financial planning for 2025, questioning its record budget which he said was built on 'unstable assumptions' of global oil prices.
The Senallang state assemblyman accused the Gabungan Rakyat Sabah (GRS) government of continuing to make grand announcements and bold promises while ordinary Sabahans see little to no improvement in their daily lives.
'The Sabah government is boasting about its largest-ever state budget of RM6.4 billion for 2025, but this so-called achievement is built on unstable assumptions.
'More than 40 per cent of the revenue is expected to come from oil and gas, based on the GRS government's optimistic forecast of US$76 (RM326) per barrel, but the current oil price hovers around US$60,' he said.
Shafie said that Sabah could lose hundreds of millions in revenue if prices stay that low, which is enough to wipe out the projected RM24 million surplus and push the state budget into a deficit.
'What is GRS' plan if prices remain low? What is their contingency strategy to ensure there is development funding for schools, clinics and roads in the rural areas?' he asked.
Shafie also criticised the state government's handling of poverty, unemployment and infrastructure challenges, noting that despite the 'record budget,' Sabah remains the poorest state in Malaysia, with eight out of the ten poorest districts located in the state.
'Our budget is twice that of Selangor and six times more than Penang. So where is the money going? Why hasn't it helped lift us out of poverty?' he asked.
'Even more alarming is the unemployment rate of 7.9 per cent in the third quarter of 2024 which is the highest in Malaysia according to the Department of Statistics Malaysia. This means over 170,000 Sabahans are jobless, an increase from 7.5 per cent in 2023.
He said that if the economy is really growing as claimed, there wouldn't be so many people still struggling to find jobs while those who are employed are trapped with low-paying wages.
'Half of Sabah's workers earn less than RM2,000 a month. In Q1 2023, the median wage was RM1,864. A year later, it increased by just RM18 while food prices in Sabah remain the highest in the country,' he said.
Shafie also cited concerns over child health and malnutrition.
'Our children are suffering too. One in four Sabahan children under the age of five is stunted. This is the highest stunting rate in Malaysia and it reflects a deeper failure in nutrition, rural healthcare and education. The GRS government has failed to plan for the next generation,' he said.
He said that much of the problem lies in the state's corrupt practices where the Malaysian Anti-Corruption Commission (MACC) has repeatedly reported misuse of funds and false claims especially in the state's education system.
'GRS has done little to fix the system or hold those in power accountable.
'Many teachers are afraid to speak up about wrongdoing because they fear being punished or losing their jobs. This shows a broken system that punishes honesty instead of protecting it,' he said.
He also criticised lavish spending on grand launching events, ribbon cuttings and announcements for appearance' sake.
'Millions are wasted on tents, souvenirs, lucky draws and entertainment just to attract large crowds in order to appear popular. Why spend millions on publicity stunts, glossy signboards and social media videos while our roads collapse, our electricity fails and our people struggle with the rising cost of living?'
'This is not progress. This is failure in planning, failure in delivery and failure in leadership. Sabahans cannot continue to pay the price for a government that cares more about slogans and image than the plight of the people,' he said.
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