Investors keen on Sabah bonds – Musa

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SABAH managed its finances well, said Chief Minister Datuk Seri Musa Aman, saying it proved the state is “bankable” as investors are confident and satisfied to invest and buy bonds issued by the state government.

He said the bonds issuance is a cheaper way to finance approved commercial projects that would be potentially profitable and generate long-term benefits to the state.

“If these projects are financed through loans from commercial banks, agencies and government-linked companies, it may require two to three per cent higher interest payment compared to the coupon rate.

“In addition, through a special mechanism, management of the bonds can be better implemented through the Sabah Development Bank and that the government is prepared to repay the bonds when it matures, without any problems,” said the Finance Minister in his winding-up speech during the 13th State Assembly sitting, yesterday.

In reply to concerns raised by  Pantai Manis assemblyman Datuk Rahim Ismail and Luyang assemblywoman Melanie Chia, he said the bonds have been included into the state revenue as stipulated in the Treasury Ruling.

“As a transparent government, bond yields should be included in the estimated state revenue as the Ruling requires that all money received, be it by the federal or state government, must be included in the Federal Consolidated Fund or the State Consolidated Fund.

On issues related to youth development, he said the recently unveiled State Budget 2011, with the theme ‘Prosperity Through a Holistic Approach’, the state government promised integrated and comprehensive approaches to develop the younger generations of Sabah.

“This means that youth development is not only accountable to the Youth and Sports Ministry but also gets attention from ministries or departments concerned. The ministry may only be allocated a total RM69.41 million allocation, but some provisions related to youth development are also distributed to ministries and other relevant departments,” he said.

Musa regarded the Sabah Budget 2011 as a pragmatic and realistic financial plan.

“I am happy that all assemblymen have shared constructive criticisms to help us to develop and provide better welfare for to the people,” he said.