I want to express my reservation for the Budget's allocation of RM2.3 billions in 2006 for Sabah. Whether we would actually get the small allocation is still questionable, as budget is just a paper deal.

It is known that Sabah has been shortchanged since 1963 as the Malaysia Agreement was not fulfilled financially as far as Sabah is concerned. To go back to 1963, I need to show you some historic facts.

The Agreement on the establishment of the Federation of Malaysia was signed in London on July 9, 1963 by the governments of the United Kingdom, Malaya, Singapore, Sarawak and Sabah .

The Agreement of 11 Articles and in 234 pages was published on July 11 after 18 months of conferences in Singapore, Kuala Lumpur and London. Amongst the various conditions in the Agreement it was reported as follows:

'The financial questions previously in dispute between Singapore and Malaya were settled in the following manner:

1) 60 percent of the Federal revenues collected in Singapore would be paid to the Singapore Government and 40 percent to the Federal Government.

2) to assist development in the Borneo territories, Singapore would make available to the Federal Government a 15-year loan of 100,000,000 Malayan dollars, free of interest in the first five years, and a 15-year loan of 50,000,000 Malayan dollars at current market rates in the Federation (ie 150,000,000 Malayan dollars in all, or about 17,500,000). (Source: Keesings Contemporary Archives).

Earlier, in February 1963, the draft agreement was published. Amongst the items in the draft agreement was this item as follows:

'It was stated that the Malayan Government hoped to provide M$300,000,000 (about 35,000, 000) over the first five years for capital development in Sarawak and M$200,000,000 (about 23,300,000) for North Borneo.

'A British promise had been made of 1,500,000 a year for five years to both States combined, provided that aid from the Malayan Government continued over the same period. (Source: Keesings Contemporary Archives).

In that draft Agreement, 20 points were also incorporated relating to other aspects of governance. These 20 points cannot be sensitive. But I believe they are sensitive because Sabah has got a raw deal in all aspects.

I believe Sabah never got the money as promised above by the Malayan government, the Singapore government and the British government, money which I term as 'carrots'. Instead, we got the 'sticks' and why are we still getting these sticks in all the national budgets since then?

Even when Singapore withdrew in 1965, the financial commitment was to be valid. If Singapore refused to make good her share, then the gederal government, as the mentor, should stand in for the amount pledged.

So it is timely that an audit be done to scrutinise how much Sabah has been shortchanged in the early years and also the subsequent years. Sarawak is another case to consider.

With all this information now available inter alia other issues, it is justified that Sabah and Sabahans be compensated (like those highway concessionaires) to the tune of RM40 billion.