
Lion's share for water, roads: State Assembly passes RM1.186 billion 2025 Supplementary Supply Bill
Published on: Tue, Jul 08, 2025
By: Larry Ralon Text Size: Masidi said RM789.1 million of the supplementary funds would be under the control of the Finance Ministry, comprising RM600 million for contributions to statutory funds, RM185.5 million under General Treasury Services and RM3.6 million for the Ministry's own operating expenses. Kota Kinabalu: The Sabah Legislative Assembly on Monday approved the 2025 Supplementary Supply Bill amounting to RM1,186,923,403 to ensure continuity of government administration and implementation of people-centric projects until end of year. A significant portion of the supplementary allocation totalling RM523.5 million will go towards addressing two major issues - water supply and road infrastructure - demonstrating the State Government's commitment and determination to resolve them. State Finance Minister Datuk Seri Masidi Manjun, who tabled the Bill, said the additional funding covers 53 expenditure heads. He said the 2025 supplementary allocation would finance six categories of expenditure: contributions to statutory funds (RM600 million or 51 per cent), administrative expenses (RM204 million or 17pc), operational expenses (RM195 million or 16pc), domestic grants (RM84 million or 7pc), investment purposes (RM54.4 million or 5pc) and special provisions (RM50.7 million or 4pc). Masidi said RM789.1 million of the supplementary funds would be under the control of the Finance Ministry, comprising RM600 million for contributions to statutory funds, RM185.5 million under General Treasury Services and RM3.6 million for the Ministry's own operating expenses. 'Of the contribution to statutory funds, RM250 million or 41.7pc will be added to the Development Fund to reduce the Development Account deficit, which does not involve cash flow. Meanwhile, RM150 million or 25pc will be channelled to the Statutory Trust Fund for the maintenance of roads and bridges throughout Sabah.' In addition, RM200 million or 33.3pc is proposed for the State Government's special trust fund to implement the Syukur, Budi, Sentosa, Subfly and Sukses, as well as for the construction and repair of water, road and utility infrastructure. RM185.5 million is proposed under general treasury services, which includes RM54.4 million for equity investment; RM89.1 million for infrastructure projects, including water treatment plant upgrades and new pipe installations, as well as small-scale infrastructure and public amenities; and RM30 million in domestic grants for Kota Kinabalu City Hall to clean marine debris around the city and islands, and to support non-governmental organisations (NGOs). A further RM12 million is proposed to fund public facility projects, including mosque upgrades and the construction of the Tawau International Cultural Centre. 'An additional RM147.6 million is proposed for the Works Ministry and its departments to maintain and repair drainage systems, treatment plants and water pump stations, restore disaster-damaged infrastructure, maintain government buildings, carry out electrical wiring, enforcement activities and other administrative and operational needs. 'RM94.4 million is proposed for the Chief Minister's Department and its agencies to fund state scholarship programmes, mosque and surau maintenance, upkeep of Raudah parks and other administrative and operational needs.' The Agriculture, Fisheries and Food Industry Ministry and its agencies are recommended to receive an additional RM55.7 million to cover the maintenance of drainage systems, river cleaning, flood mitigation and other administrative and operational costs. The Local Government and Housing Ministry and its agencies are allocated an additional RM25.9 million, among others, to settle cash advances for special financial aid to traditional leaders, grants-in-aid, rate replacement contributions and the upkeep of local authorities, as well as other operational expenses. Masidi said the Community Development and People's Wellbeing Ministry and its departments are allocated an additional RM16.2 million. Of that amount, RM4.5 million is to support the State's initiative to provide 100 haemodialysis machines to selected health facilities across Sabah. 'This reflects the State Government's commitment to helping kidney patients receive free treatment at nearby health centres. Another RM11.1 million is allocated for aid to fire and flood victims, support for senior citizens, orphans and the underprivileged, as well as the operations of preschools for children with disabilities. The remaining amount will fund administrative and operational expenses under this Ministry.' Other ministries and departments are allocated an additional RM58 million to cover various expenses, including RM15.6 million for allowances to Village Development and Security Committee (JKKK) chairmen, RM8 million for hosting the 11th Sabah Games (SAGA) in Tawau and RM34.3 million for other administrative, operational and service expenditures. The 2025 Development Estimates under Paper CMD.2 requires a further RM416,541,291, involving 83 expenditure heads across 10 ministries. Masidi said of this amount, RM224.5 million or 53.9pc is to be financed from the State Fund, RM188.5 million or 45.3pc from Federal loans and RM3.5 million or 0.8pc from Federal repayments. 'The largest share of RM254.9 million or 61.2pc under the Additional Development Estimates is proposed for the Works Ministry to fund projects under the Public Works Department, State Water Department, State Sewerage Services Department and State Railway Department. 'These include road projects for towns and small municipalities, special water supply programmes, sewerage schemes under local authorities and permanent railway line repairs,' he said. Of that amount, RM187.5 million is to be funded through Federal loans. The second largest allocation of RM82.5 million is for the Rural Development Ministry to fund small-scale rural development projects, poverty eradication, the People's Wellbeing Housing Programme (RSRS), the Alternative Rural Electricity Supply Programme (Belba – solar streetlights and generation set provision) and the Alternative Rural Water Supply Programme (Balba – clean water via gravity-fed systems and tube wells). The Chief Minister's Department is proposed to receive RM38.5 million for special development projects, surveying Native Customary Rights (NCR) land and the Sabah Satellite Positioning Reference Network, improving waste disposal systems in Kota Kinabalu, and constructing new mosques and religious schools under the Islamic Affairs Department. An additional RM1 million is allocated to the Sabah Land Development Board to service Federal loan repayments. 'An estimated RM17.4 million is proposed for the Agriculture, Fisheries and Food Industry Ministry, of which RM13.9 million comes from the State Fund to finance projects under the Fisheries Department and Irrigation and Drainage Department. The remaining RM3.5 million is under Federal repayments to support the Veterinary Diagnostic Laboratory project in Kinarut.' A total of RM7.7 million is allocated to the Industrial Development and Entrepreneurship Ministry, including RM5.7 million for the preparation of vendor facility sites in Salut and infrastructure development in Industrial Zone 7 (IZ7) Phase 3. Another RM2 million is for infrastructure works in Sipitang Oil and Gas Industrial Park (Sogip), including electricity connection for Phases 1 and 2 of streetlight installations. The Youth and Sports Ministry is allocated RM4.84 million to fund the construction and maintenance of sports complexes across Sabah. Masidi said RM4.6 million is proposed for the Community Development and People's Wellbeing Ministry, which includes building facilities for children with disabilities, integrated centres for the disabled and elderly and senior citizens' homes. 'An additional RM2.9 million is proposed for the Tourism, Culture and Environment Ministry to support the development of Sabah Parks, tourism assets and upgrades to heritage sites under the Sabah Museum Department.' A further RM2.3 million is proposed for the Local Government and Housing Ministry to fund landscaping and the construction of office buildings for local authorities, and for the Science, Technology and Innovation Ministry to make final payments for the E-Desa Kg Pelakat Project in Sipitang. 'The majority of the additional allocation recommended this year is for addressing two major issues – water supply and roads. From the total amount in the supplementary estimate, RM523.5 million is for that purpose. 'This clearly shows the State Government's commitment and determination to resolve long-standing issues repeatedly raised by the people, which have also been politicised by parties with vested interests,' he said, adding the actual annual requirement to comprehensively address water and road issues exceeds RM2 billion. More than 20 government and opposition assemblymen debated the Bill. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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Borneo Post
10 hours ago
- Borneo Post
SST amendment bill won't give added burden to taxpayers - Masidi
Masidi KOTA KINABALU (July 8): A Bill to amend the State Sales Tax Enactment 1998 (SST) was passed by the Sabah State Legislative Assembly on Tuesday, with Finance Minister Datuk Seri Panglima Masidi Manjun assuring that the move is aimed at strengthening the State's fiscal backbone without burdening taxpayers. Masidi, when tabling the Bill, said a total of 37 amendments had been carefully drafted to improve efficiency, transparency and accountability in the collection and management of State revenue. 'These amendments are not merely technical adjustments but form part of a holistic effort to ensure our State Sales Tax law remains responsive, fair and effective in today's increasingly complex economic environment,' he told the House. He stressed that the amendments are designed not only to boost Sabah's revenue collection but also to ensure that every taxation process is clear and firmly governed by law. 'As I explained earlier, we have not neglected taxpayers' rights. On the contrary, we are providing mechanisms for fair resolution through appeal channels, instalment payments and agreed composite assessments,' he said. Masidi added that the approach reflected the State Government's commitment to strengthening Sabah's fiscal foundation, closing loopholes, and protecting taxpayers' rights. 'We do not want a tax system that burdens the people. We want a system that is clear, easy to understand and transparent,' he said, adding that with the passing of the Bill, Sabah would be better positioned to manage its revenue while maintaining the trust and cooperation of taxpayers. Masidi pointed out that the SST is an additional source of income allocated to Sabah and Sarawak under Part V of the Tenth Schedule of the Federal Constitution. 'For this, the State Government gazetted the State Sales Tax Enactment 1998 and the State Sales Tax Regulations 1999. The last amendment was in 2018, which at the time covered only three items, Crude Palm Oil (CPO), Lottery Tickets and Slot Machines,' he said. Since then, six more items have been added to the tax net from 2020 to 2025, Petroleum Products, Fishery Commodities, Scrap Iron Waste, Silica Sand, Palm Oil Biomass, and Gold and Silver mined in Sabah. 'This brings the total to nine taxable products. To date, 386 companies hold SST licences, and collections since 1999 up to 30 June this year amount to RM32.26 billion,' he said. Masidi revealed that when the SST was first collected in 1999, it contributed only RM89 million or seven percent of the State's revenue. However, by 2024, SST revenue had surged more than 3,000 percent to RM3.03 billion, accounting for 44.5 percent of Sabah's total income, with an average collection of RM250 million a month. 'This clearly shows that tax revenue is now a major source of funding to ensure the State's fiscal sustainability and economic growth,' he said, while recording the government's appreciation to taxpayers for their contributions towards Sabah's development. Masidi assured that despite the extensive changes, no new taxes were being introduced. 'I want to make it clear — this amendment does not create new taxes. What we are doing is removing grey areas. In fact, this clarity benefits not only the tax collector but also the taxpayer,' he stressed. Moyog assemblyman Datuk Darell Leiking, however, expressed concern that adjustments to upstream pricing could be passed on by operators and manufacturers to end consumers, indirectly burdening the people. Responding, Masidi explained that the main thrust of the amendments is certainty and transparency. 'With this, businesses can plan better because they know exactly what must be paid and what does not need to be paid. Companies that comply will be more competitive, and we have done comparative studies with other jurisdictions to ensure our system aligns with global standards,' he said. Addressing concerns raised by Kapayan assemblywoman Datuk Jannie Lasimbang on whether the changes might restrict court powers, Masidi assured that judicial review rights remain protected. 'I do not believe it can ever be removed. Judicial review is fundamental and cannot be excluded from any law. That is why, for the first time, we are also establishing a Tax Appeal Tribunal for those dissatisfied with any assessment. 'This will provide an additional avenue for taxpayers to appeal, while giving certainty to both tax authorities and taxpayers on what must be paid and how to pay it,' he said. Meanwhile, Masidi reiterated to Bugaya assemblyman Jamil Hamzah that there was no overlap between the State Sales Tax and the Federal Government's SST, as both are governed by separate constitutional powers. 'For the State, our sales tax covers specific activities and products only. The rest remains under federal jurisdiction. What we should really focus on is ensuring that Sabah secures its 40 percent share of revenue collected from the State,' he said. Masidi also clarified to Darell that businesses would need to file separate returns for the Federal SST and the State Sales Tax as they are two different taxes governed by two separate authorities. He assured the House that the longer six-year timeframe under the amendments would give both taxpayers and the State ample room to resolve any issues properly. 'We must look ahead. This law must be robust enough to address challenges, not just now but for the future. If there are still points that require further explanation, my ministry welcomes more discussions, even special sessions if needed,' he said. The amendments to the SST Bill were: Clause 1 contains the short title and the commencement of the proposed Enactment. Clause 3 seeks to amend Section 2 by inserting new definitions, deleting certain definitions, and replacing the definition of 'sale.' The amendment to the definition of 'sale' has been restructured and expanded to clarify that, among other things, the act of transferring taxable goods out of Sabah, removing them from Sabah, or taking them out of Sabah falls under the definition of 'sale' whether or not the transaction takes place within or outside Sabah. Clause 4 seeks to amend Section 8 to empower the Minister to amend or revoke any exemption under subsection (1). Clause 5 seeks to amend Section 10 to make it an offence for any person to conduct business selling or supplying taxable goods without a license or to conduct business at a place or premises not specified in the license. Clause 6 seeks to amend Section 11 by providing a time frame for a taxable person who has ceased business to surrender their license, and by providing that the Director must give reasonable notice to the taxable person before revoking their license. Clause 7 seeks to insert a new Section 12A which explains the issuance of invoices by computer. Clause 8 seeks to amend Section 13 to improve the existing provision regarding the obligation to keep records. Clause 9 seeks to amend Section 14 to empower the Director to require, by written notice, any taxable person to submit a complete or additional return within a reasonable time. Clause 10 seeks to insert a new Section 14A which gives the Director power to allow State sales tax or penalties that have become due and payable to be paid by instalments. Clause 11 seeks to amend Section 15 by including negligence as one of the exceptions allowing the Director to make an assessment at any time. Clause 12 seeks to insert new Sections 15A and 15B. Section 15A gives the Director the power to issue a composite assessment notice following a written agreement with a taxable person who failed to submit a return, submitted an incorrect return, or provided any incorrect information affecting State sales tax liability. Section 15B clarifies that an error or technical defect in an assessment, notice, or other document shall not invalidate it, as long as the assessment and document comply with the requirements of the Enactment. Clause 13 seeks to amend Section 16 to determine the time of sale for taxable goods supplied within the State but subsequently removed or delivered outside the State. Clause 14 seeks to amend Section 17 to allow a surcharge to be claimed as a civil debt to the State Government and to limit judicial review of appeals related to excessive or incorrectly assessed tax, penalties, or surcharges. Clause 16 seeks to amend Section 19 to extend liability to the directors of a company, partners of a firm, or members of an association who held their respective positions when the liability arose. Clause 17 seeks to amend Section 21 by inserting a new category of individuals from whom the Director may collect State sales tax or penalties that have become due and payable. Clause 18 seeks to replace Section 22 to improve its content and to provide the Director with an extended period from three years to six years to claim repayment for any refund made in error. Clause 21 seeks to replace Section 26 by expanding the scope of inspection to any building or place as well as any books, documents, records, or items. Clause 22 seeks to insert a new Section 26A to empower the Director or any authorised State sales tax officer to investigate the commission of any offence under the Enactment. Clause 23 seeks to insert a new Section 29A to enable any authorised State sales tax officer to be given access to any recorded information or computer data, whether stored in a computer or otherwise. Clause 25 seeks to amend Section 31 to make it an offence for anyone to refuse or fail to grant access to any recorded information or computer data, and for anyone to impersonate the Director, State Sales Tax Officers, or an authorised State sales tax officer. Clause 26 seeks to amend Section 32 to empower the Director to impose a penalty equal to the amount of State sales tax that has been or will be undercharged due to an incorrect return or information, if no prosecution is initiated. Clause 27 seeks to amend Section 33 by providing civil remedies for the Director to impose a penalty equal to the amount of State sales tax collected by an unauthorised person, where no prosecution has been initiated. Clause 32 seeks to insert a new Part IXA relating to the power to protect revenue in certain transactions. This new Part contains new Sections 50A to 50C. These new sections provide the definition of 'transaction', the power to disregard certain transactions, and the power to substitute prices, disregard structures, and impose surcharges. Clause 33 seeks to replace Section 54 to improve the provision relating to the service of notices. Clause 34 seeks to insert a new Section 54A to empower the Director to order substituted service if satisfied that service of the notice or document cannot be affected as stated under Section 54. Clause 36 seeks to amend Section 58 by allowing any person aggrieved by a decision of the Director to appeal to the State Sales Tax Appeal Board in the prescribed manner. Clause 38 seeks to amend Section 61 regarding the Minister's power to make rules relating to the State Sales Tax Appeal Board.


Borneo Post
11 hours ago
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Sabah assured of role in state oil and gas projects – Masidi
Sabah will not be left out of participation in its growing oil and gas industry. KOTA KINABALU (July 8): Sabah will not be left out of participation in its growing oil and gas (OnG) industry, assured State Finance Minister Datuk Seri Masidi Manjun. Masidi told the State Assembly here Tuesday, in response to an additional question by Senallang assemblyman Datuk Seri Shafie Apdal who queried why a West Malaysian-based company was awarded by Petroliam Nasional Berhad (Petronas) a Small Field Asset Production Sharing Contract (SFA PSC) for the Mutiara Cluster offshore exploration project near Sandakan. Shafie had questioned the state's firmness on policies to safeguard its natural resources such as OnG, wondering why SMJ Energy (SMJE) or Sabah International Petroleum (SIP) did not directly discuss with the parties as he rued Sabah's miniscule five percent royalty on oil in the state while Petronas has had control of the remaining 95 percent over the decades. In response, Masidi explained that oil exploration costs lots of money, and the Mutiara Cluster project itself involves a lot of capital expenditure which the state does not have, even though the project is just a preliminary exploration stage and is not actually producing any oil yet. He said SIP and SMJE also do not have the expertise to be eligible for the international bidding, urging for practicality as they are not able to get involved in everything with their current capabilities, while clarifying that bidding for oil exploration and smaller contract works are very different. 'Having said that, this does not mean that we do not have any involvement at all. Insyallah, Petronas or SMJE will make an announcement later on. 'Trust me, SMJE has a scope of participation in Sabah's oil exploration or industry, so don't say that we are giving everything away to others,' he said. The minister also dashed comparisons between Sabah's progress in the field to Sarawak's, saying that the neighbouring state is over a hundred years ahead of Sabah because that was when oil was discovered in the state, while Sabah is still in its infancy. Shafie then pointed out that it is not about comparing Sabah and Sarawak, but Sabah must have firmness and clear-cut policies when it comes to its resources and raw materials to benefit its downstream sector, like Sarawak has been doing. Masidi, who is also Karanaan assemblyman, replied that his opinion is that nothing has been given to Sarawak which Sabah did not and will not get so far, and that Sabah's policy on its natural resources including OnG is very, very easy. 'That is why we signed a Commercial Collaboration Agreement with Petronas – we have our rights and a committee to determine how far is our involvement in the oil sector in Sabah. 'This is what we have been doing. The difference is, we do our work silently and show results. Some just talk without anything to show for. 'Trust me YB. We were both civil cervants, but I also know a bit about oil even though I am new to the industry,' he said.


The Star
12 hours ago
- The Star
Sabah firms didn't bid for Mutiara Cluster O&G project due to lack of expertise, capital, says Masidi
Finance Minister Datuk Seri Masidi Manjun explained in the Sabah State Assembly that Sabah's state-owned firms lacked the technical expertise and capital to bid for the Mutiara Cluster oil and gas project. KOTA KINABALU: Sabah state-owned firms did not bid for the Mutiara Cluster oil and gas project off the state's East coast because they lacked the necessary technical expertise and financial capacity to compete in an international bidding process, says Finance Minister Datuk Seri Masidi Manjun. The 14-year production-sharing contract (PSC), part of the Malaysia Bid Round 2025, was awarded by PETRONAS to Dialog Group Bhd — a Peninsular Malaysia-based listed company — for the exploration of the Mutiara Cluster located in the Sandakan Basin. 'Exploration requires billions in capital. At this point, SIP (Sabah International Petroleum) and SMJ Energy are not yet qualified to take on such bidding because we lack the technical expertise,' he said. He was responding to a supplementary question from Warisan president Datuk Seri Mohd Shafie Apdal (Senallang) during the state assembly's question-and-answer session on Tuesday (July 8). Masidi stressed that Sabah's non-involvement in this round of bidding does not mean the state is being excluded from the sector. 'But trust me — SMJ has its own involvement, which we will announce later,' he added. He explained that Sabah's participation in the oil and gas industry is guided by the Commercial Collaboration Agreement (CCA) with PETRONAS, which includes a joint committee to determine the extent of state involvement. 'So far, there is nothing that PETRONAS has given to Sarawak that it will not also give to Sabah,' he said. Masidi also urged for a more realistic view of Sabah's development, pointing out that Sarawak had a century-long head start. 'We are often compared with Sarawak, but their oil industry began over a hundred years ago. We are just starting out — we are crawling while they are already running,' he said. Earlier, Shafie had raised concern over Sabah's position in managing its own oil and gas resources, questioning why a lucrative offshore project near Sandakan was awarded to an outside firm. 'This is not about politics. This is about Sabah's wealth,' said Shafie. 'We've fought for years to increase Sabah's share from PETRONAS — and now, when an oil block right in our own waters is up for grabs, why aren't our companies even at the table? SMJ and SIP should have been involved from the start.' He said Sabah must adopt a firmer, clearer policy on resource ownership, similar to Sarawak. 'PETRONAS cannot just go around awarding our resources without engaging us directly. The state government must protect what belongs to Sabah,' he said.