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Within the Malaysian Federation, Sarawak has a small public sector. Over time, the State Government is increasing its expenditure and revenue to slightly more than the Federal Government’s share in the state. State Government revenue has been dependent on depleting natural resources such as forests, lands and mines, indicating its constraints in continuing overall deficits to finance development. The Federal Government has also incurred overall deficits because of development expenditure, which should be more than adequately covered by non-tax revenues such as royalties from petroleum production in the state. Publication: 4th International Malaysian Studies Conference; 3-5 August 2004, Universiti Kebangsaan Malaysia, Bangi.  Author: Wee, Chong Hui. [Download]