Sabah says hoping to get 20pc oil royalty in Budget 2020

Julia Chan
Sabah Chief Minister Datuk Seri Mohd Shafie Apdal speaks to reporters at Parliament in Kuala Lumpur July 16, 2019. ― Picture by Miera Zulyana

KOTA KINABALU, Sept 23 — The Sabah state government said today it is hoping that the 20 per cent oil royalty it was promised during the last general election will finally be given during the upcoming federal Budget to be tabled on October 11.

Chief minister Datuk Seri Shafie Apdal said that the oil royalty was high on its list of wants, along with other dues listed in the Malaysia Agreement 1963 which is currently under negotiation.

“We hope not just for the reinstatement of Malaysia Agreement 1963 but also oil, because the state is among the oil producing states, and although we understand the financial constraints of the federal government, we need the money to develop Sabah,” he said.

He said this when asked what he hopes to receive from the Budget 2020. He was speaking to reporters after visiting the Sabah Shell headquarters here. 

Shafie said that Sabah was far behind in terms of infrastructure and needed to make oil and gas a sustainable sector that can attract investors, be profitable and provide jobs.

“Meanwhile, we want the state government to benefit from this sector because we know the income from this sector is not small, it’s big and became a contentious issue during and after the election and people are asking why we are not getting our dues,” he said.

He said that because of this, he hoped the ongoing negotiations between the state and federal government will come to fruition.

“The 20 per cent is not that much compared to what they have realised all this while,” he said adding that the 20 per cent is in the Pakatan Harapan election manifesto.

Related Articles Labuan MP says long-awaited bridge to Sabah getting green light Sabah govt to launch state agriculture blueprint CM urges developers to apply for loans from Sabah Development Bank Berhad