SANDAKAN: The Sabah government will intensify efforts to reduce the state’s debts, Chief Minister Datuk Seri Mohd Shafie Apdal said today.
He said various strategies had been carried out by the state government to ensure it would not continue to be burdened with debts as they impacted implementation of development plans for the people.
“Last year, the state government made debts repayment amounting to RM1 billion, for debts that had to be paid within a stipulated period.
Otherwise, our credit rating will drop.
“This enabled us to make plans to help the people as we are not bogged down with debts, ” he told reporters after attending a district-level Chinese New Year celebration here today.
In October last year, Mohd Shafie said the state government was able to make repayments of federal government bonds totaling RM1 billion before the deadline on Dec 8, 2019.
Mohd Shafie, who is also State Finance Minister, said the previous state government had secured bonds totaling RM6 billion from the Sabah Development Bank Bhd.
However, RM4 billion of that amount was spent by the previous state government for property purchases in Kuala Lumpur and Johor, although the money was to be spent for development in Sabah, he added.