Stagger payments if lump sum too much, Sabah CM tells Putrajaya


Jason Santos

Chief Minister Mohd Shafie Apdal says Putrajaya must understand that Sabah has to pay its own debts, thus, the state needs the 40% revenue it is entitled to. – The Malaysian Insight file pic, November 30, 2018.

PUTRAJAYA should consider paying Sabah’s 40% revenue entitlement in instalments if it is unable to make a lump sum payment, said Mohd Shafie Apdal.

The chief minister said Sabah is mindful of the federal government’s financial position, but added that Putrajaya should not take too long to fulfil the Malaysia Agreement 1963 (MA63).

“Putrajaya needs to understand that Sabah has to pay its own debts.

“Maybe, there is no need to pay in lump sum, but in staggered payments,” he told reporters after a ceremony where the state government received dividend payments from the Sabah Credit Corporation today.

He was responding to Finance Minister Lim Guan Eng’s admission that the federal government does not have enough money to pay Sabah its share of revenue, as stated in MA63, but has full intention of doing so.

Lim’s statement drew mixed reactions, with the Institute Development of Studies (IDS) saying Putrajaya should not default on the payment as it would be a breach of the constitution.

Shafie said he will consult IDS and raise the matter to Prime Minister Dr Mahathir Mohamad for a possible review. – November 30, 2018.


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