Azmin: Federal Govt to fulfil promise of oil royalty payments to states

  • Nation
  • Tuesday, 22 Oct 2019

BANGKOK, June 22 -- Economic Affairs Minister Datuk Seri Mohamed Azmin Ali during a press conference at Shangri La Hotel today. --fotoBERNAMA (2019) COPYRIGHTS RESERVED

KUALA LUMPUR: The federal government will fulfil its promise regarding the issue of royalty payments to oil-producing states based on current laws, says Economic Affairs Minister Datuk Seri Azmin Ali.

However, he added that the federal government, however, still needs to look into several details involving technical matters.

"We will fulfil our promise based on the law and we will pay the state as determined by Petronas," he told reporters at the Parliament lobby on Tuesday (Oct 22).

He was asked whether there were any official engagement with the Kelantan state government regarding its demands on oil royalty.

It was reported that Kelantan had demanded an oil royalty payment of some RM1bil from the federal government instead of what was recently given.

Currently, the federal government pays 5% of oil production money to oil-producing states, as determined by Petronas.

On Oct 15, Kelantan Mentri Besar Datuk Ahmad Yakob denied Finance Minister Lim Guan Eng's statement, saying that the recent RM15.7mil received by the state government was goodwill money and not oil royalty payment.

"There are several matters that need to be reviewed. As highlighted in the Federal Constitution, if it is beyond the three nautical miles beyond the state's territories, it is owned by the federal government and Petronas while part of it will be paid to the state if its within the boundary.

"These are among the technical matters that needs to be further reviewed and it will be done based on the current law," Azmin explained.

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