Chief Minister Datuk Seri Musa Aman, who is also state Finance Minister, said the proactive measures need to be undertaken to ensure the country’s economic growth is on a solid footing.
“The state government realises 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 per cent and has directly decreased national income, which will also affect Sabah’s economy and finance.
“The trend in crude oil prices has also affected the state’s revenue, in which petroleum royalty contributes 28 per cent towards the state’s income,” he said in a statement here today.
Musa said if the current oil price scenario and global economic situation continue to worsen, 25 per cent of Sabah’s forecast revenue or RM3.862 billion will not be met.
He said a a state government circular on prudent public expenditure will be issued soon. Measures will include limiting out-of-state travel by government officials, freezing group educational trips within the country, organising events outside the office as well as the hiring of event management services.
“We also apply the National Blue Ocean Strategy by optimising the usage of training facilities at state government premises, and ministry as well as department-level celebrations will not be organised except for state-level celebrations,” he said.
He said other efforts to reduce costs include reducing utility costs, freezing new requests for office renovations, optimising the usage of current office space in order to reduce rental of outside premises, and limiting the provision of food and beverages 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 will allow the state government to restructure the implementation of development projects in line with the state’s financial capability.
— BERNAMA
