No major budget cheer for Sabah, Sarawak

Waiting for vital direct-benefit goodies,Sabahans
and Sarawakians were again left behind in Prime
Minister Najib Tun Razak's budget 2013.

KOTA KINABALU: Instead of lifting the crippling 1980 cabotage policy, Prime Minister Najib Tun Razak today announced a price uniformity scheme to neutralise costs differences between consumer products in West and East Malaysia.

The catch however is that the scheme is only applicable in Kedai Rakyat 1Malaysia (KR1M) stores in Sabah, Sarawak  and Labuan.

Najib said 57 more stores will be set up throughout Sabah and Sarawak.

Sabah is the second largest state covering 73,997 sq km while Sarawak is sprawling comprising  124,450 km2.

Najib’s announcement of a “conditional” price uniformity scheme tenable in KR1M store in Sabah and Sarawak is a far cry from the much hoped for relieve from cabotage.

As recently as in August, the Federation of Sabah Manufacturers (FSM) complained that even prices in KR1M stores were 30 per cent higher than the shops in Kuala Lumpur.

The 32-year cabotage policy has been a bane to Sabah and Sarawak where the prices of essentials good are generally higher compared to the peninsular Malaysia due to high cost of delivery and distribution.

Announcing his ‘people friendly budget’ Najib said: “To reduce the costs and prices of goods, the government has introduced various initiatives, including the price uniformity programme, provision of transport subsidy as well as opening Kedai Rakyat 1Malaysia (KR1M).

“For this, the government will allocate RM386 million to ensure the prices of essential goods in Sabah and Sarawak as well as in Labuan are sold at lower prices.

“(This will be done) through the opening of 57 Kedai Rakyat 1Malaysia (KR1M) and to bear the cost of delivering products from Peninsular Malaysia to Sabah, Sarawak and Labuan including the interior areas,” said Najib.

No direct benefits
He cited as example the current cost of a gas cylinder in remote Ba’kelalan in Sarawak. A 14kg gas cylinder costs RM70 in Ba’Kelalan.

“With the price uniformity programme, the cooking gas can be purchased at only RM26.60 per cylinder,” he said.

Najib also announced a discount on ferry charges for those who commute daily by ferry from Labuan to Sabah and Sarawak.

“To reduce the burden of the rakyat who commute daily by ferry from Labuan to Sabah and Sarawak, the government will provide a 50% discount on ferry charges to all passengers.

“Furthermore, 50% discounts will also be provided on ferry charges for commercial vehicles that transport basic essential goods and construction materials to Labuan,” he said.

He added that an efficient public transport system, is crucial for development of the community and that  Syarikat Prasarana Negara Berhad is in the process of expanding its services to provide high quality buses to other locations including Kota Kinabalu.

He also said, the government will allocate RM6 billion in 2013 under the Private Financing Initiatives (PFI 2) to implement various projects and programmes to ensure the well-being of the rakyat and spur the nation’s development.

Among the projects identified include refurbishment and maintenance of schools and health clinics; housing projects; water tank projects; flood mitigation plans and provision of sports facilities.

He said the 1Malaysian Development Berhad Trust will allocate RM300 million to provide education grants and financial assistance to build rumah arau for pre-school students in the interior of Sarawak and 1Malaysia Mobile Clinic and repair houses for the poor and needy.

Najib also announced RM100 million to supply 40,000 water tanks for rainwater harvesting in the interiors of Sabah and Sarawak.

These aside the budget offered nothing specific to directly alleviate the hardship or improve the quality of life for the ordinary Sabahans and Sarawakians.