KUCHING: S&P Global Ratings, which has affirmed their ‘A-‘ score for Sarawak for its stable earnings outlook, showed that the state government had been prudent, responsible and disciplined.
The report proved that the state government had been spending within its means and not otherwise as claimed by certain quarters.
In talking about this, Minister in the Chief Minister’s Office (Integrity and Ombudsman), Datuk Talib Zulpilip, said that the report was heartening.
“It proves that the financial management of the state is in compliance with the normal principles and practices of financial governance. Many newspapers are reporting the good news,” he said.
Talib also noted that there were several reports that quoted the following pertinent points concerning the matter.
“First, the exceptional budgetary performance and liquidity would likely mitigate its elevated debts, supporting its creditworthiness.
“Secondly, the state’s large cash surpluses built over the years also feature in the rating. It has been the state budgetary practice to have regular surplus and budget deficit is normally avoided,” Talib stated.
He also mentioned that anyone that followed news about the annual state budget would readily pick that point.
Besides that, Talib also said the prudence in spending had also been practised as was recognised by S&P when coming up with the very positive report.
“There are people who said that the state would become bankrupt within three years, which is simply rubbish and possibly done in bad faith,” he said.
Talib also advised these people to refer to the S&P Report before speaking.
“If the current practices and pattern are maintained, the future of Sarawak will remain assured,” he said.
S&P Global Ratings is an internationally recognised and independent rating agency. “It takes all relevant factors into consideration. Therefore, there is no room for people to argue with their report,” said Talib.
