AS the celebrations of the Kaamatan Festival come to an end for another year, Sabahans are left reflecting on what it could have been for their state if they had been allowed to enjoy their state rights and revenue entitlements.

Since the declassification of the Malaysia Agreement documents by the UK government in 2012, Sabah has experienced a gradual awakening, although the full realization of the lost state rights only came following significant efforts from various individuals.

The abolition of the dreaded Internal Security Act in 2012 also enabled the open talk of these rights and demands.

No political power can claim to have been a pioneer in this cause. Discussions about the Malaysia Agreement only gained traction towards the end of the Barisan Nasional era. 

It subsequently received mainstream attention during the Warisan-led administration, and continued to move forward under the Gabungan Rakyat Sabah government.

Among all the state rights, the 40% revenue entitlement is particularly significant. Various Sabahans have offered their interpretations, while others have countered with their views.

This confusion is evident in the recent appeal by the federal government against the Sabah Law Society’s bid to review the state’s revenue rights.

A lawyer from Sabah interpreted the constitutional provisions as mere aspirations in this case.  

The reality remains that Article 112C of the Federal Constitution provides for a special grant for Sabah, and Part IV of the Tenth Schedule specifically states that two-fifths of the revenue collected by the federal government must be returned to Sabah.

This article aims to lay out why this should be honoured.

Following the first review of the special grant in 1968, Sabah enjoyed the wealth of its resources accordingly. 

However, from 1973 onwards, for reasons only known to the federal government, the special grant under this formula stopped, and was fixed at RM26.7 million. 

No review was carried out thereafter despite it being constitutionally mandatory.

Many Sabahans wondered why no political power, either from Sabah or the federal government, attempted to pursue a review during the period between 1974 and 2022.

Yet this period saw the resentment of the Sabahan people beginning to grow.

Land of problems

It was not until 2022 when the present administration made a review on the amount to be given to Sabah. On Friday, Prime Minister Anwar Ibrahim vowed to devolve more powers to Sabah when the state is ready for it. 

The funds have significantly increased now, but the reality remains that it is still not the 40% that was stated in the Federal Constitution.

Sabah now faces a myriad of problems: bad road conditions, incessant power brownouts, water supply problems, poverty, higher prices of goods, inflation, unemployment, lucrative sectors controlled by foreigners, and much more. 

Despite these challenges, the leaders of Sabah have been accommodating to the federal government. There is not a phase of the state’s progress that Sabah has not answered the call of the federal government.

When they asked for our natural resources (i.e. oil and gas), Sabah gave them.

When palm oil was crucial for Malaysia, Sabah provided its best.

When Malaysia Airlines started in the 1970s, Sabah gladly helped financially. When AirAsia needed help, Sabah helped too.

When the federal government needed money, we lent it as well. Based on a legislative supplement dated October 1, 1976, a total of RM5 million was borrowed from Sabah amid the emergency ordinance. The money was borrowed “due to the grave emergency threatening the security of Malaysia.”

A viral video of Kota Kinabalu MP Chan Foong Hin years ago also showed the true compassionate nature of the Sabah people. 

Chan said if Sabah received its 40% revenue entitlement, other states in Malaysia would also be affected. 

Similarly, federal ministers claimed that increasing Sabah’s oil royalty could bankrupt Petronas, and a former finance minister stated that the federal government could not give Sabah its constitutional rights due to the burgeoning national debt. 

Despite these setbacks, Sabah has remained composed even as its politics and its people suffer.

Sabah has not always been this disadvantaged. There was a time when the state had control over its wealth. The state was so wealthy that students enjoyed free shoes, school uniforms, exercise books, pencils, and more. 

Stationery was the least of parents’ worries when the “back to school” season began. Today, the motto seems to be, “if it’s not broken, why buy a new one.”

Still struggling

For some, this might be just a sob story, but no one has ever walked in the shoes of a Sabahan.

Even in recent assembly sittings, state finance minister Masidi Manjun pointed out that Sabah has officially requested eight times for Putrajaya to disclose the sources of revenue it has collected from the state.

Putrajaya seemed to refuse to give the information.

Even now, 60% of the cash-strapped Sabah Development Bank’s non-performing loans have gone to peninsula-based companies. 

It is understandable if Sabahans feel they have been deprived of their wealth.

It is understandable if the next round of embarrassing national statistics includes Sabah or any of its areas.

As Kaamatan comes to an end, Sabah is still struggling with food security problems. 

It makes one wonder why this Harvest Festival has been themed “Beyond Food Security”! – June 1, 2024.