Sabah's 2025 Budget will increase deficit, worsen economic gap, warns Shafie

The Star

07-07-2025

KOTA KINABALU: Sabah's rising expenditure under the 2025 Supplementary Supply Bill will increase the state's mounting deficit and worsen the economic gap between the state government and its people, says Datuk Seri Shafie Apdal.
Debating the Bill at the Sabah State Legislative Assembly on Monday (July 7), the Senallang assemblyman and opposition Parti Warisan president said that the additional RM1.2bil allocation on top of the previously approved RM6.7bil, pushes total state spending to almost RM8bil this year, yet there remained little clarity on how this would generate tangible returns for the rakyat.
'We are spending billions, but how much revenue are we actually generating? With this scale of spending, I believe Sabah is now facing a serious deficit,' said the former chief minister.
Shafie also questioned the government's decision to raise RM900mil through sukuk bonds to bail out Sabah International Petroleum Sdn Bhd, likening the move to the controversial 1MDB case at the federal level.
'The state government is now in debt. A bailout of this size deserves scrutiny. It is not just about issuing sukuk, the real question is, is this money going where it is truly needed?' he asked.
He stressed that every sen of public funds must lead to measurable outcomes, such as job creation, income generation, or directly solving issues affecting people's daily lives, particularly the long-standing water and electricity problems in rural areas.
Shafie highlighted the frustration of many Sabahans who still struggle to access clean water, referencing some viral videos on social media of families and peaceful riots pleading for basic needs.
'They don't want luxury … they just want basic necessities like water to drink, shower, and use the toilet,' he said.
He also criticised what he saw as a mismatch in spending priorities, stressing that millions were spent on state-level events and programmes that yielded little direct impact, while people were still waiting for their needs to be fulfilled.
'When we allocate extra funds, let it be based on need, not the ceremony. The people deserve more than token allocations,' he said.
Shafie also raised concerns about the lack of transparency in certain allocations, including an additional RM1bil channelled to the Chief Minister's Department, describing it as odd based on his 36 years of political experience.
'We need clear answers. We request breakdowns, but often receive vague replies, such as 'for schools and students'.
'I will scrutinise and audit these expenditures, and if there is a change in government, I will ensure any abuse is addressed,' he said firmly, referring to the upcoming 17th state election, which is due by year's end.
He reminded the House that these were public funds, paid by everyday Sabahans through taxes on basic goods like stationery, phones, and clothing.
Touching on key issues like land rights, energy control, and foreign policy, Shafie urged better coordination between federal and state agencies to avoid repeating past mistakes like those seen in the Sipadan and Ligitan disputes.
'We need to work with our neighbours (Indonesia on developing Ambalat), yes … but not at the cost of Sabah's autonomy or resources. Let's not allow others, including PETRONAS, to dominate all our assets.
'We cannot allow this kind of spending to continue without results. The people deserve better … they deserve real development, not promises,' he said.