The 2024 Budget strategies to strengthen key sectors: Masidi

24 November 2023

By Wartawan Nabalu News

KOTA KINABALU: The State economy is showing signs of recovery, with a growth rate of 3.7 percent in 2022 compared to 1.5 percent in the previous year.

The Gross Domestic Product (GDP) of Sabah also experienced a slight increase, from RM79 billion in 2021 to RM81.9 billion in 2022.

Additionally, the per capita GDP of Sabah increased to RM35,766 in 2022 compared to RM30,022 in the previous year. This positive growth is attributed to the recovery of the state's major economic sectors.

In his Sabah State Budget 2024 speech in the State Legislative Assembly today, Finance Minister Datuk Masidi Manjun, said in terms of trade balance, from January to August 2023, Sabah recorded a trade balance of RM13 billion, a decrease of 45.8 percent compared to the same period in 2022. This decline was driven by a decrease in the export value of key commodities, particularly crude oil (CO) and crude palm oil (CPO), he said.

According to him, the decline in the export value of CO was due to a decrease in export quantity by 7.8 percent and a decrease in market prices. The average price of CO during that period decreased by 24.5 percent, resulting in a 21.1 percent decrease in the export value of CO in Sabah.

Similarly, the decline in the export value of CPO was caused by a decrease in market prices. The average price of CPO was RM3,873.63 per metric ton compared to RM5,628.13 per metric ton in the same period in 2022, resulting in a 27.9 percent decrease in the export value of CPO, he said.

“On the other hand, the import value increased to RM27.3 billion from RM26.4 billion during the same period in 2022, indicating a 3.4 percent increase. This increase was contributed by the higher import value of major goods in the state, such as machinery and transportation equipment, food, and fuel and lubricants.”

“Despite these fluctuations, Sabah is optimistic about maintaining positive economic growth in 2024. This optimism is supported by strong domestic consumption, increased public and private investment, and continuous recovery in the major economic sectors. The state has also seen a decline in the unemployment rate, indicating a strengthened labor market.”

As of September 2023, the inflation rate in Sabah was recorded at 1.8 percent, slightly lower than the national inflation rate of 1.9 percent. The state government will continue to implement various initiatives to control price increases and stabilize the inflation rate, aiming to reduce the cost of living for the people, he stated.

Development and economic growth are crucial to ensure the prosperity and well-being of this state. Therefore, the state's revenue needs to remain strong to enable the formulation of holistic development and growth plans that benefit the entire population of this state.

“Taking into account the positive economic projections for the upcoming year, we can implement various initiatives to meet the needs of the people, especially in terms of improved basic infrastructure and public facilities.

“Therefore, the 2024 Budget is prepared to achieve the following expenditure strategies; enhancing and strengthening the growth of key sectors, namely agriculture and food security, industry, and tourism.”

“Secondly empowering human capital by strengthening knowledge, skills, and spirituality to foster a strong sense of identity and third addressing socio-economic disparities and improving the standard of living through various inclusive and equitable initiatives.

Developing enabling capabilities to support economic development, including basic infrastructure, information infrastructure, and public facilities must also be carried out as well as empowering the efficiency, effectiveness, and efficiency of state administration and delivery systems.

He said the implementation of cost-saving expenditure policies and the cultivation of efficient and integrity-driven work practices will streamline the state administration in line with the theme of the 2024 Budget.