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My Speech for the 2nd State Legislative Assembly, Aug 25-26, 2008 September 1, 2008

Posted by wong jimmy in State Legislative Assembly.


Tuan Speaker,




To begin my speech, I would like to highlight the wrongs in the Tawau Municipal Council which had made mistakes after mistakes which does not benefit the people.


I also call on the relevant ministry to review the performance of all the contractors under the Tawau Municipal Council. The rate payers believe many are getting paid for doing unsatisfactory job.


e.g Tukang sapu dan parit di taman-taman. Itulah Tawau menjadi rubbish town.


Here is our ratings on at the end of the dateline for vote of no confidence ending on August 8, 2008.

A rating of 0 to 100% will be given for any improvement work done since the launching of the 100 days vote of no confidence.


a. Street Sweeping – 0%. Hardly any workers were noted on the street to sweep the rubbish and cleaning the road with water.

b. Drainage – 10%. Only noted slight improvement. Blockage of drains were noted after heavy rain.

c. Street Lights – 10%. Badly needed street lights whether repair or install were not done but those which are not needed had been commissioned.

d. Grass cutting – 10% point. Had published in local news to inform MPT to shorten the grass cutting to 1 month interval but MPT still maintain the 3 months interval.

e. Car Park – 10%. Still no improvement noted even though MPT had agreed in principal to convert the old market empty space into temporary parking space.

f.   Rubbish Collection – 50%. Marked improvement noted but still unsatisfactory.

g. Licensing – 60%. Marked improvement on the renewal of license but application of new license still unsatisfactory.

h. Septic Tank – 90% for YB, 2 points for general public. Service was good if complaint handled by YB but general public complaint still lack of urgency from MPT.

i.    Five Foot Way (Kaki Lima) – 10%. Only slight improvement noted. Pot holes everywhere on the five-foot-way.

j.    Rubbish Bins – 0%. No new bins were noted and replenished.

k. Rubbish collection points cum car wash – 0%. The car wash stalls which were commissioning next to the rubbish collecting center suppose to monitor and clean the collecting center but no visible improvement was noted.

l.    Rats and Wild Dogs – 0%. No action taken by MPT.

m.              Rubbish Dump road maintenance – 10%. Improvement noted but have requested for road to be sealed.

n. Road closure for special function – 70%. MPT have done a good job on this.  


Average = 23.57% improvement


If you feel the rating is biase, then come to Tawau and do your own rating.


Nevertheless, I do see some improvements in the Tawau and Sandakan council, such as in Sandakan the council has its own mobile service. In KK the mayor told me, renewing trading license only takes about 5-minutes. This is good.


But, there are still a lot of abuses of power that must be checked.


In Tawau, I don’t see a proper program. Sweeper don’t sweep but council still pays the contractor. I feel its high time the government being the BOSS should step in and review all privatized work and see whether the work is really being done by the contractors.


I heard that the council is going to privatize the streetlights maintenance for RM500,000. How could this be, the council had reduced it streetlights mantainence and spareparts budget down to RM100,000 respectively. To privatise it at RM500,000 means MPT would be in the red ink soon.


Among the major towns in Sabah, Tawau has no overhead bridge, not even one. Why? Is the Tawau people life so cheap? There is an urgent need for one at the Pasar Tanjung which was promised to the hawkers more than 10-years ago, plus a multi-storey car park. The promise were made by the council to persuade the hawkers to move from the old market to the new existing Pasar Tanjung. But both not done until now.


As there are additional goodies from the Federal Government I suggest part of it to be use for :-


1. Repair of streetlights at highways, roads and all the residential (Taman) for a bright Merdeka Day.

2. Repair all broken drainage covers at five-foot way.

3. Clear all drainage at residential areas to prevent flash flood that has been frequent.


I also call on the government to ensure there is no marginalization of races in the council. At the moment, I feel there is a racial imbalance at the Tawau Municipal Council. I also propose that the Deputy President post be given to other race for example from the KDM or the Chinese community. 



Still, about council, now we also go to Sandakan Municipal Council.   




Joint Venture (JV) by Local Councils

Scandals or ‘Sign Buta’?


It had already happened in Tawau’s Sabindo open space, and now I want to call the attention of YBs in this Dewan Yang Mulia about ‘illegal’ housing development in Sandakan.


The government never allowed illegal squatters, but here we have a JV between the Sandakan Municipal Council (SMC) and a local developer that entered into an agreement to develop an ‘illegal housing’ (Taman Indah Jaya Estate Phase 9) consisting of 290 units on a piece of land that does not owned by either parties.


It seemed that everyone was blind not to see or realize that the housing will be built on the wrong site, which is LA 97070642 and not as stated in the JV agreement and Sales and Purchase Agreement TL 077550235.


This is not a small mistake, but a VERY BIG mistake. How could the lawyer(s) of the SMC missed this before advising SMC to enter the agreement.


The matter had been reported to the police as it is clearly a cheating case. (Show copy of police report)


So, if the JV is not ‘SIGN BUTA’, what is it, cheating? Corruption? ‘Gaji Buta’?


Police report was made and the issue was highlighted in the news on 25th December 2007 by the DAP Sandakan cum Sabah DAP Chief for Industrial Development bureau, Anthony Teo who had strongly suggested the Police Commercial Crime Investigation Department and the Anti Corruption Agency (ACA) to immediately begin investigation and at the same time urging the relevant ministry to also investigate and take severe action. On top of that Anthony also urged CM to freeze the application on PT 97070642 and the land to be given to the affected house owners. (Show copy of news cutting)


But, after 7 (seven) months what happened? Nothing, Nothing, NOTHING HAPPENED. Every agencies and departments are quite. Why? What happened to ‘turun padang’ and ‘membantu rakyat’?

Ada lagi. So today, in this Dewan Yang Mulia, I want to highlight another scandal or maybe another ‘sign buta’. I hope this time action will be taken ASAP, as soon as possible not as slow as possible because this matter is raise in this Dewan Yang Mulia the highest authority with all the ministers and YBs.


I bring your attention on the Old Folk Home and Disable Children situated at Sibuga Road, Sandakan, which were gazette under No. 07200205 (plan No 07125042) having an area of 49.88 acres and which was under the care of Sabah Council of Social Services.




What happened? Do any Ybs here know that a part of this land, amounting to 20 acres, was encroached upon and turned into a housing estate!?


The opposition questions here are:-


1.  What was the main objective or rationales behind n having to give out 20 acres of the land to (Perumahan Permai Sandakan Jaya Sdn Bhd) the developer?


2.  If finance is the main consideration, please provide he amount of money received from such a venture.


3.  What is the land valuation for the 20 acres?


4.  Under what Minister this project was approved and in which year?


5.  Is the Ministry taking any action to acquire or replace the loss area?





Because of what had happened to the old folk home in Sandakan, I call on the government to immediate check on the status of all existing Old Folk Homes in every district. Who knows the same thing is about to happen again. Who knows ‘Blind JVs’ had already been signed and waiting for developments.


I, was an ordinary Rakyat before and because of these injustice now a YB, and I am still baffled and cannot understand how a gazette land could be developed and ‘blind JV’ signed with the local councils.


Due to what had happened in Tawau open space and Sandakan housing in which both are JVs between developers and the respective local councils, it gives the impression to the Rakyat that our local councils are managed by unqualified people who abuses their power by cheating the rate payers in order to make money.


Here I call on the government to check on what I suspect are rampant power abuse in our local council. All previous JVs must be rechecked, existing JVs to be open to the public to be double checked as the Rakyat cannot trust the local council to do a good job.       




Lately there were many planters being chased away from the land they had applied for, because the land is in the Forest Reserve. If the lands had been Forest Reserve before they start opening the area, why were they allowed to apply for the lands in the first place.


For year, some more than 20-years, they were given false hope with many support from YBs but in the end they were left with nothing.


Who is wrong here in the first place? Who gave them the hope and the green light to apply for the lands?


These are genuine planters and those who are eligible should be help no ignored and cast away. Those who don’t have any other means of income and have no lands should be given lands so that they can stand on their own and at the same time help the government in the agriculture sector.


Now they felt they were cheated and taken for a ride and left on their own without any means to raise their standard of living.


I propose the government not turn them away, but allocate them idle lands or any available lands as they had shown that they are serious and genuine planters.


By turning them away, we are killing them and creating more poor and hardcore poor Rakyat. The government targets for ‘zero poverty’ by 2010 would not be fulfil if we ignore their plea for lands.


Filter them and find out those who are really poor with no other means of support but only through cultivating. Since they had shown their interest and determination, it is only right that the government should assist them to obtain land.

I proposed that the government do what Berjaya had done, that is encouraging the rakyat to go into agriculture and providing plot of lands for them to apply.


SLDB and FELDA should play their original role that is to help the rakyat come out of poverty. Both should allocate lands to those who rightly deserve to be called ‘peneroka’.


These people want land because they don’t want to rely on others or the government to feed them. So please help them.






Chief Ministers have changed many times since the SAS was launched with great publicity and government guarantee of RM1 to RM1 profit. However, after from one CM’s promises to another the SAS did not improve but gone from bad to worst almost hitting rock bottom until ‘pisang goring pun tak boleh beli’.


What happened to the RM1 to RM1 guarantee? Shareholders want to know what is the situation?


Masih ada harapan lagi kah untuk naik? Kalau tiada harapan, kerajaan sebagai ‘gentleman’ patut beli balik ikut harga asal jualan (original buying price). Jangan lepas tangan begitu saja dan buat janji-janji manis, kerajaan harus berani tanggungjawab.


Buying back the shares is the best solution. Why? Because one of the main job of the government is to eradicate poverty, but here through the SAS the government is creating more poverty and to make matters worst and adding salt to injury the government is not doing anything concrete to boost the confidence of the investors.

Many are being chased by banks and threatened bankruptcy. Many already bankrupt.


Its been too long, its time to help them, and I am sure the government is more than able to help. The government started the SAS so the government should settle it.







In the 1st State Legislative Assembly, our honourable Chief Minister said I was talking rubbish and championing the big towkays. The honourable CM personally said that only the CPO and big towkays were charge the 7.5 percent sales tax and nothing to do with the smallholders.


We had started on the wrong footing in the first sitting, today, let me clarify, I am NOT trying to protect the big taukeh, but the small taukeh or rather the small holders. I had been approached by many small holders who produce FFB (Fresh Fruit Bunch) and they had complaint that the buyer or millers imposed the 7.5% on their FFB and thus the amount was deducted from their FFB. So I am not talking rubbish here, I am talking real facts. In this case, it is not ethical and wrong for millers to charge the small holders as this is not CPO but FFB. I hope what I am trying to say here is very clear today.





This means millers are passing the buck to the small holders. Big plantations, big taukeh no problems, they have their own mills, but why charge the small holders, isn’t this passing the buck.


All the small holders can show their receipt to prove that they were deducted the 7.5 percent sales tax. So I urge the government to investigate what is going on and rectify the situation.


Now, Yang Amat Berhormat Ketua Menteri, are you sure you never charge the smallholders. Now it is proven that smallholders were charged, even 1 kilo of FFB. You said only big companies, that, I have no objection. You should declare during the winding-up speech if the small holders were not charged the sales tax. I think you should now know it is impossible to charge the CPO or miller. All this while the millers passed the buck and charge the sales tax on the FFB/planters including small holders.    


Thus, I call the government to stop the charging of the 7.5 percent sales tax on smallholders immediately.


Once plantations are crippled, the whole economy of Sabah will collapse. So do not kill the ‘golden goose’. 


To prove my point, I did my homework to gather all the information. Here are my findings.


Sabah planters (including smallholders) need to pay the following taxes:-


1.  Sabah sales tax (7.5%)

2.  Windfall tax (7.5%)

3.  MPOB cess RM15

4.  Sabah Discount RM40

5.  Mill processing cost (RM35 to RM42)

6.  Income tax (27%)


Sabah Sales Tax – This tax is collected in accordance to Crude Palm Oil (CPO) production and is paid by the CPO miller to the State Government. Subsequently this tax shall be part of the cost of the miller. In determining the price of oil palm fruits to be paid to suppliers, the tax is taken into consideration. At this end, the suppliers are getting lower price because of the Sabah Sales Tax.





To illustrate the usual way of price tabulation as follows:-


FFB (Fresh Fruit Bunch)

CPO (Crude Palm Oil)

OER (Oil Extraction Rate)

PK (Palm Kernel)

PKER (Palm Kernel Extraction Rate)


e.g FFB price for June 2008


June CPO monthly average price is RM3594.50

3594.50 x 20.57%   =                                 RM739.39



PK month average price is RM1799

1799 x  4.50%          =                                 RM80.96

            (PKER)                         TOTAL= RM820.35










(i) Sabah Sales Tax RM3594.50 x 7.5%=RM269.59

RM269.59 x 20.57% =                               RM55.45

(ii)MPOB CESS – 15 x 20.57% =              RM3.09

(ii)Sabah Discount – 40 x 20.57% =          RM8.23

(iii)Mill processing cost                              RM42.00



Thus, price of FFB to be paid by miller to FFB suppliers is RM711.58 per metric ton. When actual fact FFB suppliers should get RM711.58 + RM55.45 (Sabah sales tax deducted by millers) = RM767.03 (But this is not happening). And this is not the nett profit for the smallholders as they have to pay for labour, fertilizer, transportation charges (for those without own lorry), fuel, maintenance and even road maintenance to their respective plantations. So what big money are we talking about? With all these taxes, cess, levies and cost, our smallholders are not laughing all the way to the banks.







Windfall Tax. Imposed by the Federal Government effective on 1st July 2008 and base on CPO production and shall be paid by CPO millers. Later amended and effective from 15th July 2008 the Windfall Tax is calculated based on FFB weight and shall be paid by the owners (Plantation owner). Oil palm owners holding less than 100 acres are exempted from Windfall Tax.


e.g July 2008


1st July to 14th July 2008. CPO average price = RM3549.50

Windfall tax is (RM3549.50 – RM2000) x 7.5% = RM116.21


To calculate the price (1st July-14th July) is as follow:-


CPO month average price = RM3454.50

RM3454.50 x 20.60%         =                    RM711.63


PK month average price

RM1776 x 4.5%                  =                     RM79.92

                                                  TOTAL =RM791.55 





(1)                    Sabah sales tax RM3454.50 x 7.5% =RM259.10

RM259.10 x 20.60% =                        RM53.37

(2)                    MPOB less : 15 x 20.60% =         RM3.10

(3)                    Sabah discount : 40 x 20.6% =    RM8.24

(4)                    Mill processing fee                       RM42.00

(5)                    W/ Tax : RM116.21 x 20.6% = RM24.00

                                        FFB Price :RM660.54


For 15th July to 31st July the FFB price is RM660.54 + RM24 = RM684.54. The owners pay the Windfall Tax themselves.



Base on amount of oil produce, no doubt the miller is paying the sales tax. But when buying it is deducted from the original price as part of the cost. If the government does not heed this, the oil palm industry in Sabah will be in bad shape.









I also propose :-



1.  The Sabah Sales Tax of 7.5 percent sales tax only to be charge after CPO reach RM2,000 per ton and the calculation to follow like the Federal Windfall Tax, which is deducting the first RM2,000 before multiplying with the 7.5%. This is because with the existing calculation being use, the golden goose will eventually be killed. At the moment, if  the 7.5 percent sales tax is charge on the CPO then it is eating to the bones or the capital of millers. That is why the millers charge it to the smallholders or FFB in order to survive.


Thus to my understanding the Sabah sales tax of 7.5% calculation should be as follows:-


Sabah Sales Tax = Month average  – (Minus) RM1,000.00                                                            x (Multiply) 7.5% x (Multiply) oil palm fruit (metric ton)






Thus, it would look as follow :-



e.g CPO price for July ’08                (RM)

                                                      3,549.50 per ton


NET                                           2,549.50


X  7.5% State sales tax            191.21 per ton


2.  However, I strongly propose that the State Government have a meeting with all the millers concern and work out the best acceptable calculation. Because from the feedbacks that I had received from millers, they say the first RM2,000 should be minus out from the CPO average price for the effective month, just like the Windfall Tax.


3.  Refer to the Federal method of charging tax, such as the windfall tax which only will be charge when CPO reach RM2,000 mark.


4.  Thirty (30) percent to be set aside for emergency use. Last time I was told not to teach the government as the government knows what t o do, but I see nothing is being done for the planters especially road repairs since the charging of levies. We can ‘turun padang’ together to see.


5.  Reduce Fomema charges, the cost of fertilizers, transportation plus levies, cess and sales taxes are chocking our planters.


6.  Engaging of foreign labours for plantations to be simplified and levies reduce to minimum because agents fees are too high.


7.  Most smallholders have not collected their capital and profit, and already they are being bombarded by levies, cess and sales taxes.





Based on the existing calculation use by miller, slowly the smallholders will die. And if the Sabah Sales Tax on CPO is to be wholly paid from the miller’s pocket, slowly the miller will die. If both die, Sabah economy will head for disaster and collapse. So please sit down with the millers and iron out the problem.




















 Sabah illegal immigrant problem.



The real issue here is not illegal immigrants without documents but those who had obtained Mykad illegally and are now in our community.


It is estimated there are about 0.5 million of such Mykad holders in Sabah. This, if not address immediately will one day jeopardized the sovereignty of the state. This is a dangerous thing and is like a time-bomb for Sabah.


This is not about those foreigners who are without passport or unemployed because they are obviously foreigners. This is about those who look like foreigner, talk like foreigner, smell like foreigner, but had obtained Mykad through dubious ways.


I totally agree with what Tan Sri Bernard Dompok said in the newspaper on August 12, 2008. And I support those BN leaders and oppositions who call for the government to be serious in this matter before it is too late to handle.




BN is concern, I too am personally concern. Those without documents are not that dangerous, but those with Mykad are dangerous. They can do anything once they are in our system of administration.


I strongly believe only a Royal Commission could address this grave matter and the only one that can do the job once and for all.


I have no doubt that none of the real Sabah people believe that the government is serious to handle this issue. To them it is another ‘wayang kulit’ (play acting).


I hope BN will wake up, realize the real issue and feel the urgency of this matter. This issue needs a very strong political will.


These ‘fake Malaysian’ are everywhere and the Federal Government has never been serious to tackle this issue.


I tell you it is real, they are already inside certain government departments and come a time when these ‘fake Malaysians’ become leaders, they will be in control and then what will happen to the real Sabahans.


This is the NUMBER ONE issue in Sabah, TOP PRIORITY to be solved in order to protect our nation and the local people.


Once again I urge the government to set up a Royal Commission to investigate how Mykads were issued. Action must be taken on the culprits. It is easy, If you don’t have enough documents you cannot hold a Mykad.


Anything apart from a Royal Commission is a waste of time and tax payers money. Last time we had Parliamentary Select Committee on Integrity headed by Tan Sri Bernard Dompok, now we have a Cabinet Committee. I dare say it won’t achieve much.





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