Special grant is a federal responsibility; the 40% revenue entitlement is a constitutional right – Ex-MP

SANDAKAN: Former Member of Parliament Chong Hon Min said that while Prime Minister Dato’ Seri Anwar Ibrahim’s announcement of an increase in Sabah’s special grant during the state-level Harvest Festival celebration is welcome, it is important to clearly distinguish between the special grant & Sabah’s 40% net revenue entitlement, as they are two entirely separate matters and should not be conflated.

He said that a special grant is essentially an annual allocation made by the Federal Government based on its fiscal position & policy considerations. 

Whether the amount is RM1.5 billion, RM5 billion or even RM10 billion, it remains part of the Federal Government’s responsibility toward Sabah’s development. 

It cannot replace nor offset the 40% net revenue entitlement guaranteed under the Federal Constitution.

The 40% revenue entitlement is a right whereas a special grant is a grant. The former is a statutory entitlement explicitly provided to Sabah under the Federal Constitution while the latter is a fiscal arrangement determined by the Federal Government. 

The two are fundamentally different in nature & should not be presented as the same thing.

He stressed that what the people of Sabah are demanding is not an additional favour but the fulfilment of the Federal Government’s constitutional obligation. 

Any special grant should not be regarded as a substitute for the 40% revenue entitlement nor should it be used as a reason to delay its implementation.

Even if the special grant were increased to RM10 billion today, it would still not mean that the 40% revenue entitlement has been fulfilled because they are fundamentally two different sources of funding. 

“What Sabahans want to know is when the federal government will actually implement the constitutional provision, rather than continue replacing a constitutional right with various temporary arrangements,” he said.

Chong noted that while the Prime Minister’s view that the Federal Government must take into account the interests of all states when making decisions is understandable,

Malaysians across the country should also understand that Sabah has already been unfairly treated to forgo for more than half a century of revenue that it was constitutionally entitled to receive under the 40% revenue-sharing arrangement. 

“The Federal Government is still owed the people of Sabah a fair & satisfactory explanation as well as a proper account regarding this matter.

He said that due to the prolonged failure to receive its rightful fiscal entitlement, Sabah has lagged behind many other states in areas such as political development, economic growth, education & culture, healthcare services & infrastructure development. The disparity is evident & Sabah has consequently become one of the poorest states in Malaysia.

Sabah is blessed with abundant natural resources & has contributed significantly to the nation’s economic development over the years. Yet, the people of Sabah have not enjoyed development outcomes commensurate with their contributions. 

This situation should not be allowed to continue.

He emphasized that the issue is no longer whether Sabah possesses the right to the 40% revenue entitlement as the Federal Government has repeatedly and publicly acknowledged the existence of that right. The real question now is when the Federal Government intends to fully implement this constitutional entitlement.

It is time for the 40% revenue entitlement to be returned to Sabah so that the state government will have sufficient resources to improve roads, water & electricity supply, schools, hospitals & other public infrastructure, thereby raising living standards & ensuring that Malaysians in Sabah enjoy development opportunities equal to those available elsewhere in the country.

Chong further stated that since the federal government has repeatedly acknowledged Sabah’s constitutional entitlement to the 40% revenue share, it should immediately announce a clear implementation timetable, including the deadline for final negotiations, the commencement date for implementation & the mechanism for retrospective calculations rather than allowing the matter to remain under endless discussions.

He pointed out that the Kota Kinabalu High Court had earlier delivered a clear ruling requiring the relevant parties to reach an agreement and implement the entitlement within 180 days. Such a ruling, he said, was made based on practical considerations & realistic expectations but not on unattainable demands.

The people of Sabah have waited for decades. Now that the High Court has issued a clear decision, what the people expect is action but not further delays through prolonged negotiations.

He stressed that the Federal Government must demonstrate its political commitment to restoring Sabah’s rights through concrete action and return to Sabah the lawful entitlement that rightfully belongs to its people.

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