In a historic move, the government and opposition members of the Sarawak State Assembly last night approved a Private Member's Motion seeking to increase the oil and gas royalty the federal government pays the state from the current five percent to 20 percent.
Sarawak now receives RM1.6 billion a year from the five percent royalty. With another 15% increase in royalty, the state, which is the largest oil and gas producing state in the country, is expected to receive RM6.4 billion annually.
Calling for the increase of oil and gas royalty to 20 percent has always been the political agenda of the Sarawak Pakatan Rakyat.
In the 2011 state election as well as in the 2013 parliamentary election, this was one of the issues clearly spelt out in the state's Pakatan manifesto.
The motion was initially moved by Chong Chieng Jen (DAP-Kota Sentosa) at the state assembly sitting yesterday, followed with an amended motion by Abdullah Saidol (BN-Semop), which was seconded by Snowdan Lawan (BN-Balai Ringin).
Abdullah (left) explained that it was not the BN’s intention to ‘hijack’ the motion put forward by
Chong, but the amended version was more holistic if compared with the one presented by Chong.
It was also the intention of the BN Backbenchers Club to push for an increase in oil and gas royalty following a recent statement made by Chief Minister Adenan Satem, Abdullah told a media conference later.
He said that following the approval by the state assembly, state government leaders would hold a preliminary meeting with Prime Minister Najib Abdul Razak on the state’s proposal.
Sarawak to work with Sabah on increase
Sarawak would also work closely with Sabah, another oil producing state, to pursue the increase in oil and gas royalty with the federal government.
Abdullah said the state needed more revenue to carry out development, in order to bridge the gap between the urban and rural areas.
During the debate in the assembly, Chong said an increase in royalty payment would bring in another RM5 billion annually to the state.
He also warned the state government not abuse the funds, but to spend the money wisely if the royalty was increased.
The state government’s spending structure must be transparent.
Chong (left) also said Sarawak could not put the blame on Opposition Leader Anwar Ibrahim who, as finance minister in the government previously, for ignoring Sarawak’s request for an increase in the oil and gas royalty.
“He was removed as finance minister in 1998. That was 16 years ago. How can you blame him for that? It is still the BN that is in power,” he said.
The oil and gas royalty came into effect in 1974, when Sarawak governor and former chief minister Abdul Taib Mahmud was primary industries minister.
In Sabah last month, opposition assemblyperson Jeffrey Kitingan moved a Private Member's Motion to raise the oil and gas royalty paid to the state from five percent to 20 percent, but his motion was rejected by the Sabah Legislative Assembly.
Sarawak now receives RM1.6 billion a year from the five percent royalty. With another 15% increase in royalty, the state, which is the largest oil and gas producing state in the country, is expected to receive RM6.4 billion annually.
Calling for the increase of oil and gas royalty to 20 percent has always been the political agenda of the Sarawak Pakatan Rakyat.
In the 2011 state election as well as in the 2013 parliamentary election, this was one of the issues clearly spelt out in the state's Pakatan manifesto.
The motion was initially moved by Chong Chieng Jen (DAP-Kota Sentosa) at the state assembly sitting yesterday, followed with an amended motion by Abdullah Saidol (BN-Semop), which was seconded by Snowdan Lawan (BN-Balai Ringin).
Abdullah (left) explained that it was not the BN’s intention to ‘hijack’ the motion put forward byChong, but the amended version was more holistic if compared with the one presented by Chong.
It was also the intention of the BN Backbenchers Club to push for an increase in oil and gas royalty following a recent statement made by Chief Minister Adenan Satem, Abdullah told a media conference later.
He said that following the approval by the state assembly, state government leaders would hold a preliminary meeting with Prime Minister Najib Abdul Razak on the state’s proposal.
Sarawak to work with Sabah on increase
Sarawak would also work closely with Sabah, another oil producing state, to pursue the increase in oil and gas royalty with the federal government.
Abdullah said the state needed more revenue to carry out development, in order to bridge the gap between the urban and rural areas.
During the debate in the assembly, Chong said an increase in royalty payment would bring in another RM5 billion annually to the state.
He also warned the state government not abuse the funds, but to spend the money wisely if the royalty was increased.
The state government’s spending structure must be transparent.
Chong (left) also said Sarawak could not put the blame on Opposition Leader Anwar Ibrahim who, as finance minister in the government previously, for ignoring Sarawak’s request for an increase in the oil and gas royalty.“He was removed as finance minister in 1998. That was 16 years ago. How can you blame him for that? It is still the BN that is in power,” he said.
The oil and gas royalty came into effect in 1974, when Sarawak governor and former chief minister Abdul Taib Mahmud was primary industries minister.
In Sabah last month, opposition assemblyperson Jeffrey Kitingan moved a Private Member's Motion to raise the oil and gas royalty paid to the state from five percent to 20 percent, but his motion was rejected by the Sabah Legislative Assembly.
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