Water deal with Singapore is unfair but so is our oil royalty, says Sabah politician

Sabah wants the 5% oil royalty to be increased to 20%. (Bernama pic)

KOTA KINABALU: A local assemblyman has urged Prime Minister Dr Mahathir Mohamed to consider the people’s feelings on the oil royalty agreement.

Kemabong assemblyman Jamawi Jaafar said the Petroleum Agreement 1976 between the Sabah government and Petronas is no longer in line with the current needs of the state.

He said Mahathir had expressed the federal government’s unhappiness over the water agreement that sells water to Singapore for a mere three sen per gallon of raw water.

“In his recent comments, he said the rate is ridiculous as it has not changed since 1962 and should be reviewed.”

Jamawi, in a statement here today, agreed that Singapore is exploiting Malaysia’s water.

He urged Mahathir to now understand the feelings and expectations of Sabahans on the issue of the oil agreement.

“The 5% value is ludicrous in this day and age.

“The state government, through Chief Minister Shafie Apdal, has asked for an increase of the oil royalty to 20% for Sabah.”

He said the 20% claim by the state government is fair since the state government has the responsibility to build infrastructure for the people in the state.

“We hope the federal government will take these demands seriously and return all our rights under the Malaysia Agreement 1963 (MA63) so that Sabahans can finally enjoy their own state resources,” he said. - FMT