THE royalty payment mechanism to oil producing states will be further refined, Deputy Prime Minister Dr Wan Azizah Wan Ismail said today as concerns whether the funds will derive from national company Petronas’s revenue or profit.  

She said the subject of oil royalty must be dealt with carefully, stressing that Pakatan Harapan remains committed to its 14th general election manifesto. 

The manifesto promised to raise the oil royalty of Sabah and Sarawak from 5% to 20% as stipulated under PH’s “New Deal”.  

“We have to look into this things carefully. It is in our manifesto,” she said.

She added that there are several factors to consider as they may affect the country before fulfilling them. 

“The federal government remains committed with the PH manifesto. We don’t want to make empty promises as we want to focus on how to fulfil it,” she said. 

Wan Azizah denied that PH had gone back with its election pledges to raise the oil royalty of Sabah and Sarawak from 5% to 20%.

The Parti Keadilan Rakyat president is in Sabah for an official visit where she will also pay a courtesy call to head of state Tun Juhar Mahiruddin, Chief Minister Shafie Apdal and attend a party function, later today.  

Concerns have been raised by East Malaysian politicians after Prime Minister Dr Mahathir Mohammad clarified the funds to pay for the oil payments will be based on the national oil company, Petronas, profit and not revenue on July 20. 

A primary concern was whether the annual payment will be minuscule if the monies had come from the oil company’s profit. – July 22, 2018.