PAS is confident that oil royalties will be paid to Terengganu again, said party president Abdul Hadi Awang.

He said that the federal-state relationship had improved under Prime Minister Dr Mahathir Mohamad.

“Dr Mahathir’s statements are very positive and we believe the relationship will improve. 

“We were informed that we will be given the agreement rate of 5%, and that it has already been decided by the cabinet,” Hadi said on the sidelines of PAS’ annual congress in Gong Badak, Terengganu, today.

Hadi, however, said he was unsure when the oil royalties would be paid.

“No dates were given on when the oil royalties will be resumed but I believe the prime minister will honour his promises,” said the former Terengganu MB.

The oil royalty issue has been a sore point for the Terengganu government since 1999.

After Terengganu fell to PAS control in 1999, the Barisan Nasional federal government, led by Dr Mahathir, began channelling oil royalties directly to the federal government.

It formed a separate federal agency in the state to dispense money for development projects.

Although BN regained the state in 2004, it continued to divert funds to a federal agency and the issue has continued to plague Terengganu.

In 2009, the then Abdullah Ahmad Badawi administration started the Terengganu Investment Authority (TIA) and promised that oil royalties would be channelled to the state investment arm. TIA was subsequently rebranded into 1Malaysia Development Bhd when Najib Razak became prime minister in 2009. – September 14, 2018.