DATUK Seri Hajiji Noor’s appointment as Chief Minister following the 2020 election saw a steady rise in the State’s coffers, despite constraints posed by the Covid-19 pandemic and other challenges, including to his position.
For the record, Sabah registered RM4.69 billion revenue as of August, this year, or 89 per cent of the approved revenue estimate for 2023, which is RM5.268 billion.
Data from the Chief Minister’s Department (CMD) show the main contributors to be Petroleum Royalties (RM1.74 billion), State Sales Tax (CJN) on Petroleum Products (RM1.07 billion), CJN on Crude Palm Oil (CPO) (RM841 million), Federal Government Grant (RM251 million), Lands and Surveys Department (RM219 million) and Sabah’s Special Grant (RM129.7 million).
Last year, Sabah’s revenue collection increased to RM6 billion, or RM6.960 billion to be precise, the highest ever achieved since independence in 1963.
The increase was attributed to Petroleum Royalties (RM1.53 billion), CJN on Petroleum Products (RM1.99 billion), CJN on CPO (RM1.57 billion), the implementation of CJN on scrap iron in February 2022 with additional revenue of RM11.5 million, and the expansion of the CJN scope of petroleum products which includes Ammonia and Urea in August 2022 with additional revenue of RM52.3 million (included in RM1.99 billion).
Sabah recorded a decrease in revenue in 2020, compared to 2019, following the drop in petroleum crude oil prices causing royalty revenue to drop to RM1.13 billion (2020) compared to RM1.7 billion in 2019.
It then increased to RM5.449 billion in 2021 with the implementation of CJN on Petroleum Products, which is a new source that contributed as much as RM1.47 billion.
Under the Hala Tuju Sabah Maju Jaya (SMJ) development plan, Sabah achieved a 51.74 per cent increase in revenue in 2021, compared to 2020, as well as a rise of 27.73 per cent in revenue in 2022, compared to 2021.
This is in addition to the establishment of Sabah’s own oil and gas company, SMJ Sdn Bhd, as a result of the Commercial Collaboration Agreement (CCA) signed between the State Government and Petronas under the direction of the SMJ initiative that has helped the effort to collect outstanding CJN of RM132 million and as an advisor, SMJ Sdn Bhd has contributed to the introduction of new revenue, for example, CJN on Ammonia and Urea (August 2022) as well as CJN on Methanol which will come into force on Oct. 1, 2023.
Also, Sabah’s Special Grant increased from RM26.7 million (2021) to RM125.6 million (2022) and up to RM129.7 million in 2023 and then further increased to RM300 million.
— DE