KOTA KINABALU, Nov 2 ― Sabah is grateful to receive RM5 billion in this year’s Budget ― an increase from RM4.13 billion last year ― no mean feat in the current economic downturn, said Chief Minister Datuk Seri Shafie Apdal.

Shafie said that he had tempered his expectations for Sabah following many reports of debts and cost-cutting efforts by the federal government and was happy to hear of the increased allocation for Sabah’s development. 

“We do however, want to know more details about what the allocation entails as we only know the total amount we are getting for all kinds of projects,” he said in a statement here.  

Shafie said Sabah needs more than RM5 billion to truly develop the state and hit its potential, but that he understood Putrajaya's financial constraints.

“I hope that the funds are used for the necessary development like roads, water, power and health facilities. We also need the federal government to look at our safety, education and health facilities,” he said.  

He also said he was happy to hear that the Pan Borneo Highway project will continue, taking into consideration cost rationalisation efforts. 

Shafie also welcomed the announcement from Finance Minister Lim Guan Eng that profits from the tourism tax, estimated at RM50 million, will be shared with the states.   

“To me, this approach is a good one to promote the tourism sector especially in Sabah, which relies heavily on tourism,” he said. 

He also noted that the reduction in foreign workers levy will help Sabah’s plantation industries. 

“This will help not only big corporations but also smallholders,” he said.