KOTA KINABALU – The political practice of demanding an oil royalty increase from Petronas for Sabah should end and be replaced by demands for more jobs and industrial investments instead, said Datuk Seri Masidi Manjun.
The Sabah finance minister said there is a need to create more employment and industries in which locals can participate and gain income-generating work.
“The approach in the past (was that) we make noise demanding (increase in oil royalty), but I don’t think it is effective.
“I think we need to show what exactly you want and I think it is starting from the bottom,” he said.
“So this is why, in the current approach, we are willing to work with Petronas, and Petronas is now willing to mentor (Sabah).”
“We can now be part and parcel of the industry as opposed to just getting a nominal amount we call royalty,” he said at a Petronas function held at the Sabah International Convention Centre here yesterday.
Sabah is entitled to a 5% oil royalty payment from Petronas over the oil and gas extracted from the state in accordance with the oil agreement signed in 1976.
Numerous political parties have latched onto the issue of the oil royalty, with many Sabah politicians claiming that the state gets very little compared to the billions of ringgit the national oil company makes from extracting oil and gas within the state’s borders.
Prior to the 14th general election in May 2018, Pakatan Harapan (PH) had promised to raise the oil royalty payment for Sabah from 5% to 20%. But this did not happen during the 22 months PH was in power.
Masidi said the current ruling alliance in Sabah – made up of Gabungan Rakyat Sabah and Barisan Nasional – does not see this formula as being effective. Instead, it is looking into ways of getting “something” from Petronas that is lasting and sustainable, he said.
“Say lah, you just want to focus on royalty. You don’t create any jobs. You don’t create any industry.
“Other people get all the jobs and get all the money, but our people just wait for the royalty to come.
“I don’t think this is the right way. The right way is that, yes, we want to get more but it should be through the creation of industry where everyone can partake and our people can
get jobs,” he said. – The Vibes, October 12, 2022
