KOTA KINABALU: A special cabinet committee has been set up to oversee matters relating to the 20% oil royalty payment to oil-producing states, according to Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.
He said the committee, which comprised representatives of four states including Sabah, had been given six months to prepare a proposal paper on the matter.
“The government needs to consult with the Sabah and Sarawak state governments about the matter and fulfil terms of the Malaysia Agreement 1963 (MA63),” he told reporters after a meeting with Sabah PKR leaders, here today.
According to Mohamed Azmin, among the matters was the royalty payment method whether from the net profit or based on the oil and gas production.
“I have to discuss with Sabah and Sarawak (in order for them) to come up with their recommendations.
“However, as I have mentioned in Parliament, we should also take into into account the country's financial position,” he added. — Bernama