Daniel John Jambun, President Borneo’s Plight in Malaysia Foundation (BoPiMaFo)
KOTA KINABALU: The Borneo Plight in Malaysia Foundation (BoPiMaFo) today said that Prime Minister Datuk Seri Anwar Ibrahim’s claim that the Federal Government spends RM13–17 billion annually for Sabah raises serious questions about transparency, fiscal accountability, and real outcomes on the ground.
BoPiMaFo said that while these figures sound impressive, very little of that money actually entered the Sabah State Consolidated Fund. Instead, most of the funds were spent directly by federal ministries and agencies, bypassing state control, accountability, and scrutiny.
“This means Sabah has no real say over how those billions are used. The funds are recorded as ‘federal spending in Sabah’ but not ‘revenue shared with Sabah’. That is a crucial distinction,” the Foundation said.
BoPiMaFo further highlighted that federal development allocations for Sabah are rarely fully utilised.
According to repeated findings by the Auditor-General and the Public Accounts Committee (PAC), on average only around 60% of federal allocations for Sabah are actually spent, while the remaining 40% is rolled over or returned to federal coffers at the end of each fiscal year.
“This is a chronic issue — every year, billions are announced but never reach the ground. Projects are delayed, funds are frozen, and what remains unspent is quietly absorbed back into the federal system,” BoPiMaFo said.
Despite these massive allocations, Sabah continues to face crumbling schools, poor healthcare facilities, unreliable water supply, and dilapidated roads. The state still records the highest poverty rate in Malaysia, at 25.3% in 2020 according to the Department of Statistics — a figure that exposes how little the so-called billions have changed everyday life.
“If RM13–17 billion were truly spent effectively, Sabah should not still be struggling with Third World infrastructure 60 years after joining Malaysia,” the Foundation stressed.
BoPiMaFo reiterated that development allocations are not substitutes for Sabah’s 40% net revenue entitlement, which must be paid directly into the State Consolidated Fund as mandated under Articles 112C and 112D of the Federal Constitution.
“The Federal Government cannot continue using development projects as political window dressing while ignoring constitutional obligations. True equality under MA63 means fiscal empowerment — not federal paternalism,” it said.
BoPiMaFo further noted that the High Court judgment on the 40% entitlement was clear: the Federal Government has a legal duty to conduct periodic financial reviews and return the rightful share of net revenue derived from Sabah.
“This is not about generosity or politics — it’s about constitutional justice,” BoPiMaFo asserted.
In conclusion, BoPiMaFo issued a sharp reminder to the Federal and State Governments:
“Sabahans are no longer impressed by billion-ringgit headlines. We want delivery, not decoration. Stop hiding behind big numbers and start fulfilling constitutional rights. Every sen that belongs to Sabah must go through Sabah’s Consolidated Fund — not through federal agencies and political proxies.”
“Until Putrajaya returns full fiscal control and honours the 40% entitlement, the promise of ‘development for Sabah’ remains nothing more than a recycled illusion,” the Foundation declared.
