‘THAT is our right. If somebody doesn’t want to pay that is a crime because that would be against our law passed by the state legislature. Only 5% ‘bukan banyak, sikit sahaja’ (not much, just small sum). But I must extend my appreciation to the players. They have registered with us and they are paying the 5% sales tax. Thanks very much to them.’
Excerpt of Chief Minister Datuk Patinggi Abang Johari Tun Openg’s speech at the official opening of PriceWaterhouseCoopers Kuching office
I HAVE to share with you because these are professional people in front of me. I cannot just say anything that I know because you will evaluate me whether I am competent or not.
As you know when you run an economy, there are three important factors that you must look into. Firstly, is your savings which you must monitor. Secondly, are your investments which must be strategic in order to give long-term returns. Thirdly, is consumption. These are the three factors that you must know when you run the country’s economy.
For that, my government, the GPS government, takes these factors into consideration when we run Sarawak’s economy. When we spend money on infrastructure such as roads and bridges it is a long-term investment. The return will be there in the long run.
Number 1, you will have connectivity. Number 2, you will provide logistical support. Number 3, of course, you’ll increase consumption because people always need something. The private sector players will definitely improve themselves as they’ve got the basic infrastructure to use.
Number 4 is electricity. You need power. So, we are spending money to extend our power provision. And thank God, we have taken over all the producers (power generation) including Bakun. It is no longer under the federal government. It is ours. In other words, we can determine our tariff which will determine our cost of production and this is what we are going to do.
And we are putting our money to accelerate the distribution of power including to our rural areas.
Number 5 is water supply. We need water, so we are spending more money on it. For water and power, we have allocated RM5 billion to spend within two years. At the same time, we are building our coastal road.
The next thing is while we spend, we must know where our money comes from. Spending without knowing your income is dangerous. Pricewaterhouse will tell you. The first thing (they will ask) is, “Where is your money?” So, I have explored how to get revenue to fund the programme that I’ve mentioned. While you do that you must also protect your savings.
So, these are the main criteria when we run our economy. Thank God, Sarawak leaders know about these things. I can assure you that Sarawak will not go bankrupt in three years.
Perhaps, we can get more money through this particular investment in the long run. As you know Sarawak has certain rights. We have imposed sales tax on our oil and gas. That is our right. If somebody doesn’t want to pay that would be a crime because it would be against our law passed by DUN.
Only 5% ‘bukan banyak, sikit sahaja’ (not much, a small amount only). But I must extend my appreciation to the players. They have registered with us and they are paying the 5% sales tax. Thanks very much to these players.
But one player is still negotiating. I have said that it is our right and they have admitted it. The question is the quantum. They want us to review our 5% but I can tell you if we review, give us the equivalent in terms of revenue.
In other words when we spend RM11 billion in the 2019 budget, it is based on a revenue of almost RM11 billion. Normally, we have surplus budget. I have to tell people for fear that they don’t understand. You know sometimes there’s a limit in politics as not everything should be politicised.
You must work based on what you feel should be done for the people. And my government is doing that; not too much politicking as we want to upgrade the standard of living of our people while at the same time enhancing our revenue.
That is why the three factors — savings, investments and consumption are very important and you have to take them into consideration as part of your formula.”
