KUALA LUMPUR – Perikatan Nasional (PN) MPs expressed their disappointment with the federal government for its decision to review the current quantum of the ongoing petroleum royalty payments to Kelantan and Terengganu respectively.
Datuk Seri Takiyuddin Hassan (Kota Baru-PN) said the decision to set aside a portion of wang ehsan (compassionate funds) from the petroleum royalties to be channelled directly to help the poor in both states under Budget 2023 contradicts the then-Pakatan Rakyat coalition’s stance in 2013 of awarding both states at least 20% revenue from petroleum off its coast.
“But the same leaders in 2013, when they became the government today are reviewing the present 5% in petroleum royalties for both states,” he said during a press conference at the sidelines of the Dewan Rakyat today.
As such, Takiyuddin reminded Finance Minister Datuk Seri Anwar Ibrahim (Tambun-PH) of the decision made by the National Finance Council on June 7, 2018 during the Pakatan Harapan administration to abolish wang ehsan, with petroleum royalties to be directly channelled to Kelantan and Terengganu without taking into account the political control of both states.
“To our knowledge, the 2018 decision has not been cancelled so the federal government is bound to implement its payments.
“As such, we reiterate the call by the Kelantan menteri besar (yesterday) to channel the full petroleum royalties straight to the state government in the interests of its people,” he added.
Takyuddin’s call comes following the revised Budget 2023 announced by Anwar, who stated that a portion of wang ehsan from petroleum revenue from Kelantan and Terengganu will be channelled directly to help the poor in those states.
Additionally, Minister in the Prime Minister’s Department (Legal and Institutional Reform) Datuk Seri Azalina Othman Said had in a statement earlier said that Kelantan and Terengganu do not qualify for the 5% petroleum revenue payments.
Azalina said this is because the Territorial Sea Act 2012 stipulates that states can only claim rights up to three nautical miles, and Petronas has never channelled petroleum revenue directly to Kelantan and Terengganu thus far because the extraction points are beyond the three nautical mile limit. – The Vibes, March 7, 2023
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