KOTA KINABALU: There is a promising prospect for a higher revenue collection for Sabah this year due to the encouraging improvement in the palm oil and petroleum markets.
Permanent secretary of the Ministry of Finance, Datuk Pg Hassanel Mohd Tahir, said the prospect for palm oil is expected to improve this year due to the strengthening market driven by increasing demand.
Speaking at the Chief Minister’s Department and Finance Ministry’s gathering here yesterday, Pg Hassanel said the prices for crude petroleum is also expected to continue to increase due to political conflicts in the Middle East and as an oil producing state, it is in position to benefit from it.
“Sabah’s revenue this year is dependent largely on the performance of the major sectors such as palm oil and petroleum. If the production can be maintained or further improved from last year, the revenue collection derived from palm oil sales taxes could exceed the initial projection.
“We are also very optimistic with the royalty payment for petroleum. Since early this year, the price for crude oil has continued to increase progressively and had exceeded USD100 per barrel early this month,” he said.
He noted that in the Budget tabled last year, the two sectors were expected to contribute 63 percent or roughly RM2.75 billion to the overall state revenue in 2011.
Pg Hassanel said apart from petroleum and palm oil, the Finance Ministry with co-operation from other ministries and departments would continue to identify other highly potential resources that can contribute to Sabah’s revenue.
At the same time, he said prudent spending would be continued by the government.
“Financial constraints call for all parties to utilise the resources available optimally and efficiently. All ministries and departments must also monitor closely their expenditures to ensure they achieve the target and produce the best result possible,” he said.