KUCHING: The Sarawak Business Federation anticipates an expansionary budget, hoping for increased allocations towards development expenditures in the Federal Budget 2024.
Its secretary-general Datuk Jonathan Chai said that this is particularly for rural infrastructure and regional development projects.
However, he raised a critical issue that has persisted over the years on the substantial share of the government’s operational spending allocated to emoluments.
“Can the size of the public sector be rationalised?
“Intentional efforts and stern commitments from the government are required to address this long-standing issue so that our bloated civil service sector can be downsized to avoid unnecessary expenditure,” he said to New Sarawak Tribune.
He was asked to comment on what should be the focus of the Federal Budget 2024, which is set to be tabled on October 13.
He then highlighted the pressing matter of the need to diversify revenue sources.
With the deficit projected to rise without additional revenue streams to fund expenditures, he suggested a pragmatic solution, which is the reintroduction of the Goods and Services Tax (GST).
Chai pointed out that this taxation system, adopted by over 100 nations globally, is deemed fairer and could help alleviate fiscal constraints.
Regarding development expenditures, Chai acknowledged the fiscal limitations and does not expect a significant increase.
Nevertheless, he passionately advocated for a sufficient allocation for Sarawak and Sabah.
“I still hope that a sufficient quantum of the development expenditure will be set aside for Sarawak and Sabah, where their infrastructures are still far behind compared to their counterparts in West Malaysia,” he added.
He also called for a fair and equitable review of the “special grant” to Sarawak and Sabah as stipulated under Article 112(D) of the Federal Constitution.
He pointed out that recent achievements, such as Sarawak’s elevation to high-income status by the World Bank and record-breaking revenue collections, should not be used as grounds to reduce funding.
He urged the federal government to demonstrate sincerity and commitment by increasing the allocation to Sarawak beyond the RM300 million agreed upon earlier in the year.
“It’s high time for the federal government to put words into action to reflect its sincerity and commitment to recognise the historical pact under Malaysia Agreement 1963 (MA63) and uplift the pace of development in Sarawak and Sabah,” he asserted.
