KOTA KINABALU: The Sabah government is prepared to take all necessary steps to obtain accurate revenue data collected by the Federal Government in the state, the legislative assembly was told.
State Finance Minister Datuk Seri Masidi Manjun (pic) was responding to Datuk Seri Mohd Shafie Apdal (Warisan-Senallang), who suggested that companies operating in Sabah, particularly major players such as Felda and PETRONAS, should be compelled to register with the state government to facilitate better data access.
“Your suggestion is indeed one of the available options," Masidi replied on Monday (April 14).
"However, from a legal standpoint, we must review the relevant laws to determine our authority in this matter.
“Still, I assure you that we will do whatever is necessary to ensure we can obtain the data we need."
Masidi added that in the absence of federal cooperation on data sharing, Sabah has had to rely on its own estimates.
“In the meantime, we have been working with (these estimates), based on public disclosures and assumptions we deem reasonable and appropriate, as the foundation for our calculations,” he said.
In urging for the state registration of federal-linked companies and agencies, Shafie had said their tax contributions could amount to hundreds of billions over the years.
“While we might not get full cooperation from federal-linked companies immediately, we can begin with state government agencies and companies already based here,” the former chief minister said.
Earlier, Assistant Finance Minister Datuk Julita Majungki revealed that Sabah has made 13 formal requests for actual federal revenue data, but has yet to receive a response.
This lack of data, she said, hindered the state's ability to accurately calculate its 40% net revenue entitlement under Article 112C of the Federal Constitution.
Majungki reiterated that negotiations with the Federal Government over the special grant formula are ongoing, with the next session set for June 30.
“We remain firm in our position to retain the original formula of 40% as stipulated in the Constitution,” she said.
She added that the interim special grant payment to Sabah and Sarawak has been increased to RM600mil for this year.
The state has agreed to accept this as a temporary measure pending a new gazetted order that will allow for its disbursement.
“Meanwhile, negotiations will continue until a mutually agreed amount is reached,” she said.
Despite the absence of comprehensive data from Putrajaya, Majungki said the state has calculated its claim based on available information and studies conducted to estimate federal revenue in Sabah.
She confirmed that Sabah has submitted its claim for the special grant covering the years 2020 to 2023, based on the original 40% formula under Article 112C, Part IV of the Tenth Schedule of the Federal Constitution.
“The state’s claim also includes missed payments from previous years, as no review has been conducted since 1974.
“If negotiations fail, an independent assessor must be appointed in accordance with Article 112D(6) of the Constitution,” she said.
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