By KUCHING: Nation premier Tun Dr Mahathir Mohamad’s pledge to return East Malaysian’s rights – in terms of 20 percent oil and gas revenue may not be as straightforward as it seems.
On Thursday, Dr Mahathir revealed in a dialogue with fund managers at the JP Morgan headquarters in New York that the governement realised that the returning the royalty to both of the Borneo states may put Petronas in a tight spot.
He pointed out that such move would mean that the national oil and gas company’s stature globally might not remain the way it is now.
“So, we have to appeal the Sabah and Sarawak governments that it is really not workable,” he said whilst noting the concern of both governement on Petronas’s position.
“They don’t want to kill Petronas but at the same time they want more money, so we’re trying to work out how we can give them more money without undermining Petronas’ own strength.”
Dr Mahathir who is Pakatan Harapan chairman is in New York for the 74th Session of the United Nations General Assembly. Prior to GE14, then opposition PH stated in their manifesto to raise the royalty of oil producing states to 20 per cent or of its equivalent value.
He reiterated the coalition’s pledge when he visited Sarawak for the national-level Malaysia Day celebration on Sept 16 this month.
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