Keep promise of 20pct oil royalty based on revenue, gov't urged
Sabah DAP hopes Pakatan Harapan will fulfil its election promises by giving the oil-producer state 20 percent oil royalty based on revenue instead of net profit ...
Sabah DAP hopes Pakatan Harapan will fulfil its election promises by giving the oil-producer state 20 percent royalty based on revenue instead of net profit.
This comes after Economic Affairs Minister Azmin Ali reaffirmed that Harapan will give the 20 percent oil royalty based on net profit.
"Sabah DAP will stick with the original manifesto, which pledged to increase the petroleum royalty to 20 percent or its equivalent," Kota Kinabalu MP Chan Foong Hin said at the Parliament lobby today.
"Even if you say that the Buku Harapan (Harapan’s election manifesto) is not a Bible and (the government) should not be overly bound by it, we cannot implement it liberally.
"We will pursue our agenda via the proper platform. We expect the Sabah ministers to raise the issue (at cabinet meetings)," he said.
He urged for a special committee on the enforcement of the Malaysia Agreement 1963 (MA63) to set up as soon as possible in order to deliberate the oil royalty issue.
The set up of the MA63 cabinet committee is one of the 10 promises the Harapan government is to fulfil within its first 100 days in Putrajaya.
Chan said the government could determine the oil royalty mechanism after the MA63 cabinet committee is set up and the matter is discussed.
He said he understood the fiscal constraints of the federal government and would be willing to accept a smaller portion of the oil royalties at the outset of its implementation.
Beside Sabah, three other oil-producing states - Sarawak, Kelantan and Terengganu - were also promised 20 percent of the oil revenue.
Previously, BN channelled a five percent oil royalty based on revenue to Sabah and Sarawak, whereas Terengganu and Kelantan only received wang ehsan (compassionate payments) after the 1999 elections.
Despite what is stated in the Harapan manifesto, Prime Minister Dr Mahathir Mohamad said Putrajaya will fulfil its promises by providing a 20 percent oil royalty based on profits.
Azmin today stressed that the government cannot afford to pay oil royalty based on gross revenue and that Petronas would cease operations if such payments were to be made.
Meanwhile, BN's Beluran MP Ronald Kiandee said the 20 percent oil royalty promises were merely political rhetoric which cannot be fulfilled.
"Now, they are saying Petronas cannot fulfil it. They have returned to their senses," he said.
"BN had been consistent on this (five percent oil royalty based on revenue), I am happy to hear that the present government is also providing the same answers. It is as though Harapan is acknowledging the previous government's policy on oil royalty," he said.
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