Prime Minister Najib Abdul Razak said that Sarawak’s demand for higher oil royalties will be discussed amicably.

National newswire Bernama reported that the PM said the matter will be negotiation "in the family spirit".

He said this in his speech a Malaysia Day celebration in Miri last night.

He was referring to Sarawak Chief Minister Adenan Satem's call for the state's oil royalty to be revised upwards from the present five percent.

The newswire also quoted the premier as saying that there is no need to create polemics about celebrating Malaysia Day and Independence Day on separate days.

"The issue does not arise because the United States, for example, celebrate July 4 every year as the national day whereas states in the country choose the dates they joined," he is quoted as saying.

However, he noted that starting next year, Independence Day celebrations will not state the number of years the nation has been independent.

Sept 16 will also remain Malaysia Day, he said.

The Federation of Malaya gained independence on Aug 31, 1957 and joined with Sabah, Sarawak and Singapore to form Malaysia on Sept 16, 1963. Singapore seceded on Aug 15, 1965.

Restore Sabah, Sarawak as equal partners