MOHD Shafie Apdal wants Putrajaya to review Sabah’s entitlement from the tourism sector, saying that the state should be earning billions of ringgit from it.

The Sabah chief minister believes the present formula Putrajaya is using is inaccurate as only RM24 million was given to the state this year.

“I was made to understand that only RM24 million was returned to Sabah. I see the formula (used by Putrajaya) is inaccurate. 

“I have voiced my concerns that we need to revise this as the revenue from tourism does not derive only from assessment rates, but it also involved food and beverage, immigration, hotel properties and more. 

“I am confident that the state income from the tourism sector is in the tune of billions. Tourism is the third-biggest earner in the country,” he told reporters after performing the ground-breaking ceremony of the four-star Grand Liberty Hotel in Kota Kinabalu today. 

Sabah is entitled to 40% of all the revenues collected by the federal government from the state as mentioned in the federal constitution.

Shafie had previously raised his concerns that the state government had no way to determine the 40% revenue entitlement as all taxes, duties and stamps are collected by the federal government. 

The federal government has done so via its agencies such as the Immigration Department, Inland Revenue Board, Customs and others. 

In another development, Shafie confirmed that negotiations on oil rights will be conducted exclusively between Prime Minister Dr Mahathir Mohamad and Sarawak Chief Minister Abang Johari Openg.   

He noted that all three men have started talks on the oil rights last month. 

“Yes, we are also doing that. We have an understanding with the prime minister on this matter. This is aside from the steering committee and specifically on oil,” he said.

Under the Pakatan Harapan manifesto, the coalition had planned to raise the oil royalty for both Sabah and Sarawak from 5% to 20%. 

Shafie noted that the steering committee to revisit the Malaysia Agreement 1963 only specifically touched on the 40% revenue entitlement for Sabah and cover areas like the economy, energy, tourism and industries. 

“This is why there are technical committees formed. For instance, the discussion on economy will be done along with Economic Affairs Minister Mohamed Azmin Ali, while energy discussions will be with Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin, and so on,” he said. 

Shafie also said technical committee discussions involving experts and government officers from both the federal and state governments on oil rights have commenced today. 

Their findings will be brought to the attention of chief ministers from both Sabah and Sarawak as well as the prime minister. – August 22, 2019.