It S Not For Bung To Say We Can T Get 20 Oil Royalty Says Sarawak Minister

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Analysts have cautioned against expectations of higher oil and gas royalties because of the worldwide slump in the industry. (File pic)KUCHING: A Sarawak minister said Sabah Umno chief Bung Moktar Radin has no say on whether Sabah and Sarawak can get 20% oil royalty from Putrajaya.
“It’s not for Bung to decide on whether Sabah or Sarawak can get the 20% oil royalty or not, ”Sarawak’s Tourism Minister Abdul Karim Rahman Hamzah told FMT.
“Whether Sabah or Sarawak get the 20% oil royalty wholly depends on the executive’s decision. If the prime minister agrees, then it will happen. Therefore, I’ll take his statement as his personal opinion only,” he added.
He was commenting on Bung’s recent statement that there was no way for Sabah and Sarawak to get 20% oil royalty from Putrajaya.
Abdul Karim Rahman Hamzah.“We have done our research on the Malaysia Agreement 1963 on oil royalty and there is no way we can get the 20% from the federal government,” he had said.
Meanwhile, political analyst Jeniri Amir said it would not be realistic for Sabah and Sarawak to demand 20% oil royalty from Petronas.
“Who doesn’t want to be given the 20% oil royalty? Of course we Sarawakians would want Petronas to give us the 20% oil royalty but would it do any good for the sustainability of the national oil company in the future?” he asked.
Jeniri who is a senior fellow of the Malaysian Council of Professors (MPN) said: “This might benefit Sabah and Sarawak but it would not benefit Petronas.
Jeniri Amir.“Can you imagine the impact on Petronas if Sarawak and Sabah were to get the 20% oil royalty and 5% sales tax for petroleum products?
“There’s no point for us to demand the 20% oil royalty because if Petronas suffers, Sarawak will also suffer.
“It must be a win-win situation. Don’t kill the goose that lays the golden eggs,” he said, adding that the issue should not be politicised.
Although the DAP had promised to give 20% oil royalty to Sabah and Sarawak the Pakatan Harapan (PH) government was unable to fulfill its promises due to the high cost of production and operations, he told FMT.
He said Sarawak should be grateful that Petronas had agreed to pay the 5% sales tax to it.
In fact, Petronas, he said, should consider giving more job opportunities to Sabahans and Sarawakians in the oil and gas industry. - FMT

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