Kota kinabalu: The Sabah state government has initiated a special committee to examine the necessity for targeted subsidies as a means to support sectors impacted by the surge in global oil prices, announced Deputy Chief Minister II Datuk Seri Masidi Manjun. This move is part of the government's effort to mitigate the economic challenges posed by the current oil price situation. According to BERNAMA News Agency, Masidi, who also serves as the Sabah Finance Minister, emphasized that the state Ministry of Finance will put forward proposals for targeted subsidies. These proposals will be based on the findings and recommendations provided by the newly formed special committee. The initiative is seen as a crucial step towards maintaining economic stability and ensuring efficient spending during this crisis period. Masidi highlighted the importance of rationalizing existing expenditures to ensure prudent state spending, which is vital for economic sustainability. He assured that these efforts are aimed at preserv ing Sabah's fiscal sustainability and resilience without depleting the state's fiscal reserves. Additionally, Masidi addressed the state's reliance on Federal Government loans, which are essential for large-scale development projects such as road construction, sewage services, irrigation, drainage, and water supply. He revealed that Sabah has RM3.2 billion in matured Federal loans that require repayment. Despite the substantial loan amount, the annual repayment stands at a manageable RM220 million, and the Sabah government has consistently adhered to the repayment schedule. Masidi also outlined plans to reduce dependency on Federal Loans through several strategies. These include strengthening Sabah's financial position by boosting revenue, optimizing current revenue collection, and encouraging all departments to explore and generate new revenue streams.