Malaysia: Pay up 20% oil royalty or stop pumping, East Malaysia says

  • Sabah opposition leader Jeffrey Kitingan on 29 Sep 19 hit out at the Pakatan Harapan (PH) government over Dr Mahathir Mohamad’s remark that it is impossible to give the East Malaysian states the 20% oil royalty, calling this at odds with Putrajaya’s “Shared Prosperity” vision for the country.
  • In a statement, the Parti Solidariti Tanah Airku president said Petronas and other oil companies should stop pumping oil in Sabah if the government does not wish to pay the royalty promised by PH.
  • The prime minister was reported as saying on 26 Sep 19 that the government had realised that giving 20% to the two states would mean that Petronas would no longer be the international oil company that it is.
  • But Jeffrey said paying the royalty would not make Petronas bankrupt as the company would only have to come up with another 10%. He said Petronas contributes about MYR60bn a year to the federal government.
  • Meanwhile, the Sarawak government has pitched a new formula to Putrajaya on “revenue sharing” with Petronas in a bid to recover its revenue losses from oil royalty, said Chief Minister Abang Johari Openg.
  • Without specifying the date, he said the new formula had been submitted to the federal government. He said he is aware that the government-linked entity is an international company but that did not mean that it could deprive the state of its revenue.
  • “While maintaining Petronas as an international company, there is a formula where Sarawak can take part too. I have submitted our own formula, it is an entirely new module which I believe will not jeopardise Petronas as an international company.”

External Link : https://www.freemalaysiatoday.com/category/nation/2019/09/30/pay-up-20-oil-royalty-or-stop-pumping-in-sabah-says-jeffrey/

External Link : https://www.malaysiakini.com/news/493668

30-Sep-2019


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