Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 24): Finance Minister Lim Guan Eng today said the federal government's revenue sharing formula for Sabah and Sarawak may only be applicable after the fiscal position of the country improves.

Speaking in the Dewan Rakyat this morning, Lim said the government requires more time, at least until next year, to come up with the right revenue sharing formula to address the matter.

"If we are to implement it (the formula), it is necessary for us to wait until our financial position permits. This is the commitment by the government," he said this morning, answering a verbal question by Subang MP Wong Chen on whether the government will propose a revenue sharing formula for Sabah and Sarawak.

"In terms of (the government's) fiscal position, the federal government is facing a very challenging situation because we inherited the financial scandals from the previous government.

"If there [are] no financial scandals as I mentioned, this would not be a big issue," Lim said.

"But whether we like it or not, we have to face the reality. We are faced with challenges, and we must strive to overcome it together: Peninsular Malaysia, Sabah and Sarawak," he added.

In accordance with core number four of the Buku Harapan, Lim said the cabinet had agreed on Sept 5, 2018 to establish a Special Cabinet Committee to review the Malaysia Agreement 1963 and to make recommendations to the Federal Government in relation to the implementations of the rights and autonomy of Sabah and Sarawak.

He said the Special Cabinet Committee's review on the Malaysia Agreement 1963 will be carried out through three stages, namely the Steering Committee, Technical Committee and Working Committee respectively, chaired by the Prime Minister and Minister in the Prime Minister's Department (Law), and also comprising experts in the respective fields.

"The Committee will give priority to the principle of fairness and equality to ensure that all parties are served with justice as provided by the law of the country in order to uphold the rule of law in our country.

"The issue of inequality in physical and socio-economic development between states in Peninsular Malaysia compared to the states of Sabah and Sarawak would be given more serious emphasis. This will also help the Federal Government in developing a more holistic economic development plan, capable of narrowing the economic gaps among Malaysian states," Lim said.

"However, it should be emphasised that any proposals or formulas must be subjected to the suitability of our financial position," he added.

      Print
      Text Size
      Share