Phoong (right) in discussion with Benedick in Kota Kinabalu.
KOTA KINABALU: Two ministers from Sabah, one with the state government and the other with the Federal Cabinet, are putting their heads together to get more help channeled to businesses in the state in Budget 2024.
State Industrial Development and Entrepreneurship Minister Phoong Jin Zhe said he had held several talks on the matter with his federal counterpart Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick.
“(We spoke) about the need for the Federal Government to increase funding for the development of Sabah businesses, and he (Benedick) is highly supportive.
“We are now brainstorming how to secure more significant assistance for Sabah businesses in next year’s Budget,” he said here on Thursday (Sept 14).
During Benedick’s courtesy visit to Phoong’s office here recently, they discussed in-depth collaboration across departments to foster the development of Sabah businesses.
Phoong hoped to secure a bigger budget for Sabah’s small and medium enterprises (SMEs) in the upcoming Federal Budget.
He said according to a World Bank report, Sabah businesses lacked the ability to export their products, which has hindered their growth.
“For Sabah businesses to make significant progress, the Federal Government must provide more assistance and work with the state government to add value to local businesses here.
“This will give them the opportunity to connect with the peninsular and international markets, thereby boosting Sabah’s exports,” he said.
Phoong said Sabah has one of the lowest export-to-production ratios in the country.
He said relying solely on financial assistance from the state government was insufficient for Sabah businesses to develop.
Towards this end, he expressed hope that the unity government under the leadership of Prime Minister Datuk Seri Anwar Ibrahim would focus on the development of Sabah’s business sector in the federal Budget.
Phoong also said Sabah businesses cannot rely solely on government initiatives, but should work with the public sector to uncover more opportunities.
He said the Entrepreneur Development and Cooperatives Ministry has several policies and activities in place that benefit the development of Sabah businesses.
“However, it is regrettable that local businesses often miss out on participating and expanding due to a lack of timely information.
“I understand that the federal ministry does not have a dedicated unit in Sabah to promote these policies and activities.
“Therefore, I have instructed my ministry to provide the necessary assistance and coordination,” he said.
In this way, his ministry would become a channel for Putrajaya to connect with businesses in the state.
