Government Agrees To Channel Oil Royalty Straight To Terengganu


PUTRAJAYA: The government has agreed to pay oil royalty straight to Terengganu government’s coffers.

Terengganu Menteri Besar Professor Dr Ahmad Samsuri Mokhtar said the state welcomed the move as the money could be used for the people.

“(Prime Minister) Tun Dr Mahathir (Mohamad) has informed us that the oil royalty will be paid to the state government. The quantum and details of the oil royalty will only be known later. But, it is at least five per cent, which is the current rate now,” he told reporters after attending the first National Finance Council meeting chaired by Dr Mahathir.

In the past, Samsuri said the oil royalty for Terengganu was channelled to the federal government agencies.

He added the oil royalty would be paid to the states regardless of their political differences.

On the smaller allocation for Pas-led Terengganu members of parliament (MPs) compared to Pakatan Harapan MPs, Samsuri said he viewed it positively.

“I want to thank the government and whether the amount is big or small, we respect the decision made. We appreciate the government’s commitment to help the state government despite our political differences,” he added.

Asked if the Terengganu state government would give allocation to the opposition state assemblymen, Samsuri said he would have to look into the state’s financial position first before making any decision on it.