KOTA KINABALU: The Sabah State Government will step up prudent measures in its expenditures in order to ensure the state’s economic growth and financial stability.
Sabah Chief Minister, Datuk Seri Panglima Musa Haji Aman, who is also State Finance Minister, said the proactive measures need to be undertaken to ensure the country’s economic growth was on solid track.
“The State Government realizes the current global economic scenario and issues announced by the Prime Minister, particularly the trend in crude oil prices that have fallen more than 50 percent and has directly decreased national income, which will also affect the position of the Sabah’s economy and finance.”
“In the context of Sabah, the trend in crude oil prices has also affected the state’s revenue, in which petroleum royalty contributes 28 percent towards the state’s income,” he said in a statement here today.
Musa explained that if the current oil price scenario and the global economic situation continue to worsen, 25 percent of the state’s revenue this year estimated at RM3.862 billion will not be achieved.
In that respect, the Chief Minister said a guideline to enhance prudent spending to reduce public expenditures will be issued soon through the State Government circular.
He said those measures include limiting travels by government officials outside of the state and abroad, freezing group educational trips within the country, organizing events outside of the office as well as the hiring of event management services.
“We also apply the National Blue Ocean Strategy by optimizing the usage of training facilities at state government premises, and ministry as well as department-level celebrations will not be organized except for state-level celebrations,” he said.
He said efforts to reduce costs also includes reducing utility costs, freezing new requests for office renovations, optimizing the usage of current office space in order to reduce rental of outside premises, and limiting the provision of food and beverage during conferences, seminars, exhibitions, meetings and courses.
“In order to continue with the momentum of the state’s development, allocations provided in the Development Budget 2015 will be maintained.
“However, the State Government will review all costs of the development projects that have yet to be implemented, particularly costs involving large sums,” he said.
Musa said the measures to be undertaken will allow the State Government to restructure the implementation of development projects in line with the state financial capability.-Sayangsabah.