KOTA KINABALU: Sabah government will continue to defend the state rights on petroleum revenue, including looking at other option pertaining to the state’s jurisdiction to collect additional revenue from oil and gas.
Chief Minister Datuk Seri Mohd Shafie Apdal said the matter has been brought up to the federal level and Special Cabinet Committee to review the Malaysia Agreement 1963 (MA63).
He stressed that the steps needed to be implemented as Sabah needs more additional revenue to develop the state.
“I have asked state finance minister and state attorney-general chamber to look into options under Sabah government jurisdiction that allow us to collect revenue from raw oil and gas by imposing charges and tax.
“I am confident that with commitment, this continuous effort by the state government will bear fruits soon,” he said in his winding up speech on the 2019 Sabah budget at the state assembly sitting here.
Shafie, who is also state finance minister, was referring to the state’s effort to claim 40 per cent revenue owed by Federal Government to Sabah and the state’s rights to increase oil royalty to 20 per cent.
He, however, stressed that all these would take time as the process requires various negotiations and discussion between Federal and state governments.
“Moving towards this, the state government chose to have a negotiation instead of confrontation with the federal government in order to claim our rights as enshrined in MA63,” he said.
Since taking over the state government, Shafie stressed that the Sabah Special Grants Review Committee has been restructured to further look into the 40 per cent revenue owed by the Federal Government to Sabah, among others.
Shafie is leading the state government and is currently waiting for meeting to be held.
Meanwhile, Shafie also gave assurance to Sabah people to not be concerned about the Philippine’s claim over Sabah as the state is protected under the Malaysian laws.
He said the state government does not acknowledge Philippine’s claim as Sabah achieved its independence through a referendum by the United Nations.
Shafie also assured the people that Sabah’s security is under control through existing cooperation between Eastern Sabah Security Command and other enforcement as well as security agencies.