Shafie to discuss oil royalty with Dr M
Published on: Sunday, September 16, 2018
CHIEF Minister Shafie Apdal would talk directly to Prime Minister Dr Mahathir Mohamad to inform the Federal Government of Sabah's stand on the oil royalty distribution.Speaking to reporters after a meeting with Azmin, Shafie said the oil royalty issue was briefly discussed during the hour-long gathering."We talked about that a bit because Azmin had already spoken on the issue in Parliament. I made it clear to him about our hopes on the matter," he said.
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Under the Petroleum Agreement 1976, Sabah and Sarawak are given 5pc cash payment each, based on the value of gross production from each state. The federal government will also collect 5pc of the total value of gross production.Shafie has said the 20pc oil royalty stated in the Pakatan Harapan manifesto should be taken as an increase on the present 5pc value of gross production in the state.This would make Sabah and Sarawak receive three times more than the total cash payment. Concerns have been raised that calculation based on net profit would be far less than what Sabahans have expected all this while.Meanwhile, Shafie said he had conveyed to Azmin the need to give Sabah greater power in implementing projects in Sabah.
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He said Parti Warisan Sabah is looking for more power devolution, and that funds from the federal government should be given directly to the state to avoid overlapping of functions and projects."There are areas in Sabah where people are still drinking water from wells. We want the funds to be used properly. Sometimes, there are overlapping projects and this problem must be addressed.
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"The State Government is ready to cooperate fully with the federal government to ensure development projects can be carried out smoothly.Stay up-to-date by following Daily Express’s Telegram channel.
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