AAA Rating, Zero Progress — Sabahans Reject Illusion of Prosperity

Murray Hunter


AAA Rating, Zero Progress — Sabahans Reject Illusion of Prosperity

Daniel John Jambun
Aug 23, 2025





PRESS STATEMENT

23rd August 2025

AAA Rating, Zero Progress — Sabahans Reject Illusion of Prosperity


Kota Kinabalu — MARC Ratings’ decision to reaffirm Sabah’s AAA sub-sovereign rating with a stable outlook may impress investors and policymakers in Kuala Lumpur, but for ordinary Sabahans it means little. Numbers on paper cannot hide the lived reality: persistent poverty, weak infrastructure, underdeveloped industries, and leaders who mistake ratings for real progress.

A Mirage of Fiscal Strength

Yes, Sabah has RM6.8 billion in reserves. Yes, revenue touched RM7 billion in 2023. And yes, the state continues to record surpluses. But the real question is: what do these figures mean for the people?

If the government truly has RM6.8 billion, where is the money? Was it invested to generate income for schools, hospitals, and jobs? If not, then these reserves are no better than a stack of old newspapers — impressive on paper, worthless in reality. Or worse, are these numbers simply accounting tricks, existing only in ledgers but never in the lives of Sabahans?

Sabah remains Malaysia’s poorest state, where rural communities still lack reliable access to healthcare, education, and clean water.

Schools are in disrepair, hospitals understaffed, and too many villages remain isolated by broken or unfinished roads.

Unemployment and underemployment push young Sabahans to seek livelihoods outside the state, even as leaders claim financial “strength.”

The paradox is stark: fiscal buffers in the treasury, but empty pockets for ordinary Sabahans.

Fragile Foundations, No Vision

MARC itself highlighted the structural weakness: 93.1% of Sabah’s tax revenue comes from petroleum and palm oil. This is not diversification — it is a gamble on global commodity markets.

A single price downturn can erode Sabah’s fiscal position overnight.

Downstream value-add industries — refining, petrochemicals, advanced agro-processing — remain far below potential despite decades of talk.

The much-publicised RM600 million “interim payment” from Putrajaya pales in comparison to Sabah’s rightful 40% net revenue entitlement under MA63, estimated at several billion ringgit annually.

An AAA rating may reassure creditors, but it cannot disguise Sabah’s economic fragility or overdependence on federal handouts.

Political Illusion vs People’s Reality

The real danger is political spin. With elections looming, there is every risk that the GRS leadership will brandish the AAA rating as proof of progress — an illusion designed to distract voters. But Sabahans know the difference between balance-sheet prosperity and household hardship.

> “An AAA rating is meaningless if prosperity never leaves government ledgers.

Fiscal strength on paper must translate into justice in wealth-sharing, genuine MA63 autonomy, and tangible improvements in the daily lives of Sabahans.

The Real Test: Turning Ratings Into Reality

Sabah cannot live on ratings and glossy reports. What matters is whether the government can convert fiscal strength into shared prosperity. CAMOS calls for:

1. Fairer Oil & Gas Revenue Sharing — Stop settling for “interim payments.” Sabah’s 40% revenue entitlement must be pursued with urgency.

2. People-Centred Investment — Deploy reserves into critical sectors: quality schools, modern hospitals, affordable housing, and job creation programmes.

3. Industrial Diversification — Fast-track downstream O&G, palm oil refining, agro-processing, and renewable energy to break commodity dependency.

4. Transparent Governance — Ensure state reserves and revenues benefit the rakyat, not political elites or cronies.

Final Word

A government can win AAA in reports and still score zero with its people. Until Sabah’s wealth is used to uplift its citizens, the AAA rating remains a hollow accolade — prosperity on paper, poverty in reality.


Daniel John Jambun

President

Change Advocate Movement Sabah (CAMOS)