20 per cent royalty or profit, Abd Karim asks

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KUCHING: A leader of Gabungan Parti Sarawak (GPS) is seeking clarification on whether the federal Pakatan Harapan (PH) government is giving Sarawak 20 per cent oil royalty or 20 per cent of profit from the oil and gas resources derived from the state.

Minister of Tourism, Arts, Culture, Youth and Sports Datuk Abdul Karim Rahman Hamzah said it was still not clear as to what PH is giving to the state following a conflicting comment made by Prime Minister Tun Dr Mahathir Mohammad inside and outside the Parliament.

“The Pakatan Harapan (PH) election manifesto pledges to give 20 per cent oil royalty instead of the present five per cent from the oil and gas revenue.

“Now, the (PH) federal government has agreed to give 20 per cent of profit. I am unsure whether this is deliberate but personally I see there is a big difference between the two.

“When oil price is low, this 20 per cent of profit could be lesser then the five per cent from oil revenue which Sarawak is already getting.

“There needs to be a clearer explanation on this. Nonetheless, it’s heartening to see the federal government willing to hear and consider the request from the Borneon states,” said the Asajaya assemblyman yesterday.

When contacted, Sarawak DAP Youth secretary Dr Kelvin Yii said the return of such revenues to Sarawak must be with accountability and not to be misused to enrich certain quarters only and even political parties.

“Based on our manifesto, it is 20 per cent royalty. That was the promise that we intend to fulfil. This shows that PH government has full intention to fulfil our promises stated in our manifesto including the said 20 per cent oil royalty,” he said.

Dr Yii said it is also important to take into consideration the importance of accountability and transparency when it comes to returning of the state’s autonomy and revenue so that these will directly benefit the people and not just certain quarters, or even any political party.

“That is why it is important we emphasise on good governance and accountability in our fight for our rights and autonomy. At the end of the day, our concern is that it must be used carefully, transparently and benefitting to the people,” he stressed.

PH, in its 14th general election manifesto, had promised to increase royalties for all petroleum producing states.

All states that produce oil will receive 20 per cent of profit from the resource, said Dr Mahathir when speaking in Parliament.

“Everybody will get 20 per cent of the profit from their area,” Mahathir told reporters later on outside the parliament chamber.

“So if the area produces a small amount, they get 20 per cent of the profit from the area. We will pay whatever is due to them” he was quoted as saying.

Sarawak is one of the four oil producing states in Malaysia. The others are Sabah, Kelantan and Terengganu.