Finance Ministry rejects Masing’s call to use up reserves

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Dato Sri Wong Soon Koh

KUCHING: The Sarawak Ministry of Finance rejects Deputy Chief Minister Tan Sri Dr James Masing’s call for the government to spend the bulk of its RM31 billion in reserves on development projects throughout Sarawak over the next three years.

Second Finance Minister Dato Sri Wong Soon Koh said in a statement yesterday the Sarawak government has always been very mindful in spending its reserves as it has to ensure that it is utilised wisely and purposefully to maximise the intended outcomes.

Wong was referring to press reports that Masing said the money should be spent before the next Sarawak election to win the hearts of Sarawakians as it would be used to develop Sarawak, which could then deprive the opposition of any issues to criticise the Sarawak government and help it to stay in power after the next election.

“It would be totally irresponsible for the government of the day to spend RM31 billion over the next three years just to win the hearts of Sarawakians or to win the state election to stay in power.

“This will be construed as money politics and using public money to drive its own political agenda. Our rakyat are intelligent and responsible citizens and they would not support such a course of action. They will deem us as an irresponsible government. Our rakyat would want us to spend public funds wisely and prudently,” Wong said.

He added that it will be beyond reason and will jeopardise Sarawak’s financial future if we, being fearful of the coming election, strategise to spend such substantial amount of reserve within such a short span of time without due consideration for long term financial stability and sustainability.

“Sarawak will be in dire straits should there be unsustainable reserves and worse of all, inadequate financial resources to face rainy days and to defend against any unforeseeable eventualities in the days ahead. The development of Sarawak, particularly socio-economic and provision of basic infrastructure facilities and amenities such as schools, roads, clinics, rural water and electricity are the responsibilities of both the federal government and state government.

“We must also seek the helping hand of the federal government to accelerate the development of Sarawak. This is part of the spirit in the formation of Malaysia, and the state has also contributed substantially in terms of tax collection and oil and gas revenue to the federal financial coffers. We must be accorded a fair and equitable share in the Federal Development Fund.”

The minister stressed that it is critically important that the government manages its finances responsibly and prudently to maintain a strong, healthy and resilient financial position and support its economic development agenda, adding that maintaining strong financial credibility and integrity is paramount in earning the confidence of investors, bankers as well as rating agencies.

“Sarawak has an ambitious five-year (11MP) development plan with a total ceiling of RM37.11 billion to accelerate the state’s rural development. The level of development fund is considered significant and is within our financial means. The challenge for us now is to utilise these allocations prudently, wisely and responsibly, and achieve and intended outcome to benefit all Sarawakians,” Wong said.