Malaysia: Ministers: Oil royalty discussions with Sabah, Sarawak still ongoing

  • Discussions on the percentage of oil royalties for Sabah and Sarawak are still ongoing between the federal and state governments.
  • “Discussions on the issue of oil royalties were held in a separate forum involving the Ministry of Economic Affairs and the chief ministers of Sabah and Sarawak. The issue will continue to be discussed,” he said.
  • He was responding to a supplementary question by Datuk Seri Maximus Ongkili (BN-Kota Marudu) who wanted to know about the development of discussions on increasing oil royalties to Sabah and Sarawak discussed at a Cabinet Special Committee meeting set up to review the implementation of the Malaysia Agreement 1963.
  • Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said the Special Cabinet Committee set up to fine-tune the method of payment of oil royalty claims has been given six months for discussions and to come up with decisions.
  • Mohamed Azmin said this would give enough time to make recommendations before the final decision on how to increase the oil royalty from 5% to 20% could be carried out.
  • Liew said seven issues had been agreed upon. These include the demand for timber and forest produce export duties; distribution of gas and electrical regulatory power; implementation of Federal and State works projects; manpower; state authority on health issues; administrative management over Sipadan and Ligitan islands and agriculture and forestry issues.

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