KUALA LUMPUR: Prime Minister Tun Dr Mahathir Mohamad said the 20 per cent royalty to be given to oil producing states would be derived from the profit made by each state.
"The royalty is based on profits made by each state. We don't take from Terengganu and give to another state.
“If the profit is RM100 million, then the oil royalty is 20 per cent of that which is RM20 million," he told reporters after chairing the Parti Priibumi Bersatu Malaysia (PPBM) Supreme Council meeting here.
He was asked to comment on Sarawak Chief Minister Datuk Patinggi Abang Johari Abang Openg’s request for clarification on whether the federal government would be giving the state 20 per cent of its oil royalties or profit.
It was reported that Dr Mahathir assured oil-producing states that they will receive 20 per cent of oil royalties as stated in Pakatan Harapan’s election manifesto.
“All (oil-producing) states, everybody will get 20 per cent of the profit from their area. If the area produces a small amount, they will get 20 per cent of the profit from that area.
"We will pay whatever is due to them, we will pay,” he told reporters in Parliament earlier this week, saying that the government was committed to paying whatever amount was due to the respective states.
“This is their money. It is their royalty, they can take it,” he was quoted as saying.