Sarawak deputy premier expects RM12.7b in revenue for 2024, says collection at RM4.9b so far

KUCHING, May 15 — The Sarawak government has collected RM4.89 billion from January to March out of the RM12.749 billion in revenue projected for this year, Deputy Premier Datuk Douglas Uggah told the state legislative assembly today.

Uggah, who is also the second state finance and new technology minister, said the collection in the first three months of 2024 represents 38 per cent of this year’s projected revenue.

“The major sources of the revenue this year are the state sales tax (RM1.462 billion), cash compensation in lieu of oil and gas rights (RM1.234 billion), dividends from investment in MNLG Group of companies (RM1.303 billion)” he said in his winding-up speech.

He said the other sources are raw water royalty (RM162 million), interest income (RM304 million), forest receipts (RM61 million), land premium (RM31 million) and federal grants and reimbursement (RM24 million). He said mining royalties, water sales and land rents contributed RM217 million.

“Based on the performance thus far, we are confident that we can achieve the targeted revenue projection for this year, barring any unfavourable circumstance at the geopolitical level globally which could adversely affect oil and gas markets,” he said.

Uggah said the state government will start imposing SST on the export of ferroalloys and polysilicon at a rate of 1.5 per cent starting from September. He said the SST rate of 1.5 per cent on the export is a fair and reasonable rate on the affected companies as they are also enjoying other tax incentives from the federal government and favourable power rates from the state.

“The revenue generated from this source will give us fiscal flexibility in enhancing our socio-economic development efforts which would include among others, implementing clean and renewable energy Initiatives,” he said.

He said the state government will continue to explore new opportunities to enhance and diversify the state’s revenue sources.

“This is imperative as we continue vigorously in pursuing our development agenda so that no one will eventually be left behind,” he added.