KUCHING: Prime Minister Datuk Seri Najib Tun Razak said that now is not the right time to increase oil royalty for Sarawak.

“The country’s revenue is critical at the moment, after having lost RM40 billion due to the drop in  prices,” he told a press conference at Wisma Bapa Malaysia after chairing the Federal Cabinet Meeting here today (May 4).

However, Najib assured that more allocations for development will be given instead, such as for the Pan Borneo Highway.

As for progress in the negotiations on the devolution of power for greater autonomy to the government of Sarawak, he pointed out that negotiations will move to iron out and review legal matters soon.

“The empowerment will be done in stages, of which 13 administrative matters have been done,” he said.

“Now we will move on to look at more complex things, especially on the legal terms and in respect of the Malaysia Agreement,” he added.

The next phase of negotiations, he emphasised, will also involve analysing and reviewing if the federal government has taken more power than it should from Sarawak and its people.