SARAWAK’S total revenue is anticipated to surpass the original estimates of RM5.18 billion this year, said Chief Minister Datuk Patinggi Tan Sri Adenan Satem.
“Based on the current revenue collection thus far, the estimated revenue for the current year is revised to RM6.11 billion, 18 per cent higher than the original estimates,” he said when tabling the Supply (2016) Bill, 2015 in the august House yesterday.
Adenan said the expected higher revenue was mainly attributed to cash compensation in lieu of oil and gas rights amounting to RM2.25 billion (an increase of RM534 million from the approved estimates of RM1.72 billion); interest from money market of RM935 million (an increase of RM200 million from the approved estimates of RM735 million) and dividend income of RM1.09 billion (an increase of RM335 million from the approved estimates of RM755 million).
However, the ordinary expenditure was proposed to be revised upward from RM4.81 billion to RM5.96 billion, an increase of RM1.15 billion, he added.
“Out of this, a sum of RM46 million is required by various ministries and departments to meet their operating expenditure and RM1.1 billion is mainly for appropriation to Statutory Funds for development purposes.”
Hence, the state was estimated to register a budget surplus this year of RM147 million, he pointed out.
“This is attainable as the additional requirement for the ordinary expenditure for the year is expected to be offset by a higher expected increase in revenue for the year.”
Adenan also highlighted some major challenges the state would be facing in its efforts to spur development as well as to achieve a developed state status by 2030.
He said Sarawak must strive to do better and benchmark itself against the best instead of being contented with its current success and rest on its laurels.
The challenges included slowing world economy in Euro area, America and Asian region especially China, weaker Ringgit, lower commodity prices and increase in cost of living and cost of doing business.
“The future of Sarawak lies in the degree of our efficiency and continuous commitment to manage the state’s resources effectively. The attractiveness of Sarawak as a preferred investment destination would be further strengthened by our ability to upgrade our level of efficiency and management skills from time to time.
“I am pleased to note that over the years, there has been a marked increase in the degree of commitment, productivity and efficiency among our workforce, with clearer focus and enhanced capability, particularly by the wider application of ICT.”
Adenan asserted that Sarawak workforce must broaden their economic base, enhance their knowledge, upgrade their skills, be more efficient, productive and innovative in order to remain competitive in this dynamic and volatile world.
“We must inculcate more pervasively a culture of good governance and the highest level of integrity. And most critically, be agile in facing emerging external challenges arising from global and regional competitions and increasing volatility in the world economy.”