Sarawak seeks 20 pct in oil and gas royalty

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GLAD TO BE HERE: Deputy Minister of Finance Datuk Ahmad Maslan (front second right) shares a light moment with Assistant Minister of Tourism Datuk Talip Zulpilip (front left). The duo were about to join a photo call with Malaysian Armed Forces Veterans Association Sarawak (PVTMS) members at the State Legislative Assembly (DUN) complex yesterday.

CALLING IT A DAY: From left – Pantai Damai assemblyman Dr Abdul Rahman Junaidi, Semariang assemblywoman Sharifah Hasidah Sayeed Aman Ghazali, Minister of Welfare, Women and Family Development Datuk Fatimah Abdullah, Minister of Housing Datuk Amar Abang Johari Tun Openg and Jemoreng assemblyman Abu Seman Jahwie leaving the State Legislative Assembly building after the adjournment of the afternoon session of legislative assembly meeting yesterday.

KUCHING: Sarawak has approved a motion requesting the federal government to increase oil and gas royalty to the state from the present five per cent to 20 per cent.

The motion achieved landmark status as it was unanimously given the ‘aye’ by both sides of the political divide.

It is understood that the current five per cent royalty translates to more than RM1.6 billion, meaning an additional 15 per cent would bring in some RM5 billion more to the state’s coffer.

Chong Chieng Jen (DAP-Kota Sentosa) had earlier moved a private member motion for the royalty to be increased, but Abdullah Saidol (BN-Semop) somehow managed to move an amended version pertaining to the same subject and it was seconded by Snowdan Lawan (BN-Balai Ringin).

Abdullah clarified it was not their intention to ‘hijack’ Chong’s motion.

“The BN Backbenchers club had initially intended to push for a raise in oil royalty to support the recent statement of Chief Minister Tan Sri Datuk Amar Adenan Satem, who called for the increase recently,” Abdullah told a press conference after the adjournment of the second day sitting.

He added that the BN’s version of the motion was more holistic when compared to Chong’s as it went beyond royalty increment. It also involved requests for more development grants.

Abdullah said he expected a series of talks and forums with their federal counterpart to follow before the proposed increment could become a reality, but he is optimistic of a positive outcome due to the large number of Sarawakian representatives at the federal level.

The state BN, he added, would be holding a preliminary meeting with Prime Minister Datuk Seri Najib Tun Razak or other relevant ministers to arrange for a round-table meeting.

Abdullah revealed that the state would also explore the possibility of working together with their counterpart in Sabah to jointly push for an increment in oil and gas royalty.

“We could work together and co-ordinate something to bring our proposal to the federal government.”

Abdullah, who is also state BN Backbenchers Club chairman, was quick to point out that the request for a hike in oil and gas royalty should not be viewed as a ‘confrontation’ of sorts with the federal government.

“We must maintain our good relationship with the federal government at all costs.”

He hoped the Najib administration would not sideline requests for more development grants.

Abdullah described Adenan’s call for a review of the oil and gas royalty as timely as the extra revenue would enable the state to bridge the urban-rural gap.

Adenan, he said, had shown great interest in wanting to bring up the rural areas, and this could be seen during the recent Balingian by-election.

“All assemblypersons, especially those from the rural areas, have been tasked to look into the plight of their respective constituents.”

About two-thirds of elected representatives in the state are representing rural constituencies, and thus the issue of increasing oil royalty was close to their hearts, he said.

In his debate on the motion, Chong said the increment from five per cent to 20 per cent would bring in an additional RM5 billion for the state government.

He, however, cautioned that if the royalty were increased, a transparent structure on the spending of the funds must be put in place.

Chong also defended Pakatan Rakyat’s de’facto leader Datuk Seri Anwar Ibrahim when the latter was accused by Adenan for having ignored the request for an oil and gas royalty increment when he was the Deputy Prime Minister and Finance Minister.

“He (Anwar) was removed as the minister of finance in 1998. That was 16 years ago, how can we blame him (Anwar) for this? Throughout all these years, it was still the BN that is in power.”