Special Grant For Sarawak Must Be Increased For State To Play Catch-up, Says Economist
KUCHING (March 10): The special grant allocation for Sarawak in the revised Budget 2023 needs to be increased to enable the state to catch up on development to be on par with the peninsula, said economist Datuk Dr Madeline Berma.
She told The Borneo Post this is a critical time for the federal government to deliver its promise to honour the Malaysia Agreement 1963 (MA63) after years of not receiving the special grant provided under Article 112D of the Federal Constitution.
She pointed out a higher allocation would enable the state to boost its efforts to improve overall infrastructure development, thus narrowing the development gap with other developed states in the peninsula.
“In my opinion, the special grant is significant not only in terms of its value but also what the grant stands for.
“The amount of the grant – RM300 million – which is an increase from an annual RM16 million since 1969, is very much needed for Sarawak to catch up and reduce development gaps between Sarawak and the other developed states, for example, Selangor, Johor, Penang.
“Another aspect is what the grant stands for. The increase in the special grant to Sarawak reflects the unity government’s commitment to honouring MA63, as provided for in Article 112D of the Federal Constitution,” said Madeline, who is an honorary fellow of Institut Masa Depan Malaysia (Masa), when commenting on the allocation for Sarawak under the revised Budget 2023.
She said Sarawak remained one of the four poorest states in the country due to a lack of access to education and healthcare facilities.
With a larger allocation, she said this development projects in the state, including upgrading dilapidated clinic and school buildings, could be expedited.
“This amount is also needed to alleviate hardcore poverty in Sarawak. It is one of the states with the highest number of hardcore poor registered in eKasih. Sarawak is also one of the four poorest states in Malaysia.
“Besides basic infrastructure, especially constructing coastal roads, feeder roads, there is a need to invest more in high quality education and lost-learning generation.
“And also invest in the alternative energy sector,” she said.
Madeline stressed improving quality of life was not only about building infrastructure.
She said the call to allow depositors to make another round of withdrawals from the Employees Provident Fund (EPF) signalled that the government needs to come up with more structural and sustainable measures in the budget.
Instead of allowing another round of withdrawals, she said the government must seek alternative ways to reduce the financial burden of the people.
“The budget should also include a new social safety system to make at-risk groups less dependent on one-off financial assistance schemes.
“Also, there is a need for structural changes as an alternative to EPF withdrawals to address the pensions crisis,” she added.
