5% Oil royalty is sufficient

 

Once again, Hiew is making another buzz on Sabah's oil royalty issue. Is he seeking some sort of assurance towards something that has been " given assurance " before?

Musa has earlier told that the Federal Government has been so attentive towards Sabah's needs and wants especially the oil royalty issue. In fact, allocation for Sabah has been increasing over years and I see it as a sign that it pays attention to us, and making shift to our requests.

Never forget that Sabah has the biggest budget with RM4.088 billion, and guess what, 12 years given a " clean bill " by Auditor General on government's financial management. Don't you think we have deserved what we deserved?

In this matter, we should look into a more bigger picture. We shouldn't pin point on certain issues and said the Government is not doing anything to protect our rights. Look at how many assistance we have obtained, and the livelihood of Sabahans are improving.

Moreover, Sabah BN government members are happy to note that the allocation for Sabah has been increasing. So we have nothing to lose by now. 

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PM - Opposition pledge to increase Sabah’s oil royalty will kill off interest in developing petroleum industry

BEAUFORT: The opposition's promise of increasing Sabah's oil royalty from the present 5% to 20% will kill off interest in developing the offshore petroleum industry, Datuk Seri Najib Tun Razak said.

The Prime Minister said under the current arrangement, petroleum companies continue to tap into marginal fields that would eventually spell increased revenue for Sabah.

''This will not happen with the Opposition's promise of a 20% royalty share for Sabah. There will be no incentive for petroleum companies to develop our fields,'' he said when launching Yayasan Sabah roadshow in Kuala Penyu near here.

''What the Opposition wants to do, in essence, is to kill the proverbial goose that has been laying the golden egg,'' Najib said to the cheers and applause of the large crowd.

He said though Sabah now gets 5% of petroleum revenues, the state receives more in terms of development funds and numerous special financial allocations from the federal government.

''This is all possible when we have a strong mandate,'' Najib said, adding that, among the special funding for the state, was a RM250mil grant that was the federal government's contribution for an international standard convention centre costing some RM500mil in Kota Kinabalu.

At the event, the Prime Minister also launched the 1.2km long Sitompok Bridge costing some RM59.6mil located just outside of Kuala Penyu town.

He said the long bridge was just one of Barisan Nasional's many achievements in Sabah that included reducing the poverty rate from 19.7% in 1999 to 8.1% last year.

Najib said the opposition on the other hand could only be counted on to make unrealistic promises in their manifestos.

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Oil Royalty Increase Will Paralyse Petronas' Overseas Forays - Awang Adek

BACHOK, Jan 13 (Bernama) -- The 20 per cent oil royalty proposal to the three oil-producing states proposed by the opposition can paralyse Petronas' overseas forays, said Deputy Finance Minister Datuk Dr Awang Adek Hussin.

Citing the proposal as unreasonable and irresponsible, he said the increase would stifle Petronas' oil exploration overseas for half of its profit came from overseas operations.

He said the company needed reserves to get new resources and new income streams for huge capital was needed to explore new oil fields.

If Petronas' growth is stunted, it will not be able to pay high dividend to the tune of RM30 billion a year to the country besides various taxes, he told reporters after presenting the cost of living allowance totalling RM109,000 to 545 Bachok fishermen here Sunday.

The opposition had proposed to raise the present five per cent royalty to 20 per cent to the three oil-producing states of Terengganu, Sabah and Sarawak in its shadow budget last year.

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Government ready to discuss oil royalty review with Sabah

 

KOTA KINABALU:The Federal Government is ready to discuss with Sabah for a review of the oil royalty, Deputy Prime Minister Tan Sri Muhyiddin Yassin said.

He said the state Barisan Nasional could discuss the mechanism of review and bring it to him and the Prime Minister for a discussion.

“We can sit down and discuss it, we have nothing to hide,” he said in response to Parti Bersatu Sabah (PBS) president Tan Sri Joseph Pairin Kitingan's call for a mechanism to discuss the issue of oil royalty and come out with a win-win formula for all parties.

Muhyiddin said it was a good idea to discuss the issue properly as the opposition was making unreal promises that they will pay oil producing states 20% oil royalty, the moment they won the Government.

“As a responsible government, we will have to manage the peoples' wealth properly and whatever decision must be sustainable for the long term and not for a short term,” he said while opening the PBS congress here yesterday.

He said the Government had spent billions of ringgit for the development of the state through revenue from oil.

On PBS and other Barisan parties' call for share of the six seats (two parliament and four state seats) formerly held by Sabah Progressive Party which left Barisan, Muhyiddin said the issue could be resolved and there was no need for all parties to tussle for the seats.

He said the parties could make their recommendations through the state Barisan to be brought up with the national leadership.

“The main thing is for Barisan to win the seats back. All these can be negotiated,” he said, urging Barisan parties not to worry about candidates but to ensure that Barisan wins all seats.

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Almost RM1b in oil royalty: CM

Kota Kinabalu: Petronas paid Sabah RM941.25 million in oil royalty this year – the highest amount ever in the State’s history, said Chief Minister Datuk Seri Musa Aman.
The amount also exceeded the State Government’s initial estimate of RM774.6 million, said Musa, who is also State Finance Minister, at the State Legislative Assembly, Wednesday.

In his Budget winding up speech for the Finance Ministry, he also informed House members that the Federal Government was now taking a look at the Petronas oil royalty issue and is expected to give its feedback at an appropriate time.
Responding to the query by Luyang Assemblywoman Melanie Chia who asked if the State Government would be paying the RM544 million bond at one go upon its maturity date in 2013, which may result in a cumulative deficit of RM804.48 million, he said the State Government was confident it would be able to provide sufficient allocation when it is time to pay the bond.
He also corrected Chia that the bond maturity period is five years and since it was issued in 2009, its maturity date is 2014 and not 2013.
Musa also criticised Sri Tanjung Assemblyman Jimmy Wong who in debating the State 2013 Budget had claimed that the State Budget looked the same each year.
“This is a view from people who do not know how to distinguish between right and the wrong. It is a typical opposition ploy to always deny the successes and achievements of the Government.
“By refusing to look and listen they continue to tell the people that the Barisan Nasional (BN) Government is incompetent, incapable and not struggling for the rakyat,” he said.
Musa said the State’s financial standing had been improving each year and apart from introducing new programmes, the old ones that had greatly benefited the people were maintained and continued.
“This does not mean that the State Government is out of ideas because the implementation of the continuing programmes is always being monitored and improved in line with the current needs of the people,” he said.
Contrary to the Sri Tanjung Assemblyman’s statement, he said the strategy and approach taken in preparing the State Budget had always been dynamic from year to year.
The strategies introduced each year had successfully produced effective output such as in increasing the State revenue collection, which could be seen in 2007 when revenue went up to RM2.37 billion and then touched RM3.3 billion in 2008.
“As I mentioned in my State 2013 Budget speech last Friday, the highest State revenue collection ever was in 2011 when RM4.368 billion was collected,” he said.
Musa said that by snubbing the State financial stand and claiming that that the State Consolidated Fund had shrunk, Wong had shown that he did not understand the State Budget planning mechanism.
“The Government is prepared to provide a huge allocation for the State’s development although it realised that it will reduce the State Consolidated Fund.
“(But), for whom is this development if not for the prosperity of the State and people. What is important is the State’s financial coffers remain strong even though we increase expenditure,” he said.
Musa also explained that the Chief Minister’s Department (CMD) received the highest allocation for next year because it had to address so many things.
He cited a RM203 million development fund specifically for the development of religious, rural, sentuhan kasih (touch point programme), forestry and land, while RM443.9 million was to pay for the salary and operations of the various departments under the CMD.
Meanwhile, a major portion of the allocation to the Finance Ministry would be distributed to the relevant departments to implement programmes and projects.
A total of RM960 million is payment for the development of several trust share accounts and another RM873.6 million is to be given for special fund projects under the oil palm industry, repair damages by natural disasters and support infrastructure, government buildings, grant to non-Muslim religious bodies and schools, government vehicles, payment of State Government’s debts, payment to the water concessionaires as well as investments equity.
Other expenses included operational cost and salary.
“If the Sri Tanjung Assemblyman had read the explanation in the distributed State 2013 Budget booklet, he should have understood this because it has already been clearly explained there.
“So the conclusion is the assemblyman did not read the State 2013 Budget booklet and did not even know the issues raised by him,” he said in response to what he described as “unhealthy accusations” by Wong when disputing the big allocation for the Chief Minister’s Department and Finance Ministry.
The State 2013 Budget of RM4.088 billion, which is the highest in the State’s financial history was passed unanimously after 30 assemblymen, minus the representative from Sebatik, took part in the two-day debate session.

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Musa : Petroleum Royalty-Open for Discussion

Datuk Seri Musa Haji Aman presenting the best student award to Canicius Kundayis, while looks on is Kamarudin Zakaria, who is the PETRONAS vice-president for Downstream Operation.

Ok, Lets us look in different angle of this issue. I will take my angle slightly different from other. Datuk Musa statement on 21 August 2012, “Therefore, I believe this issue (petroleum royalty) is open for discussion and what’s important is that we scrutinies the matter and reach the best decision for the mutual benefit of all concerned." Well this is a good news for all of us as a Sabahans. CM, at last, willing to take the responsibility, bring up the issue on a discussion with federal. On the effort, as a Sabahan we must give full support to Datuk Musa. Some of our politicians already make a statement on their support on Datuk Musa:


“On behalf of the Tenom Umno, we congratulate the Chief Minister who is concerned about the interest of the people and was prepared to discuss with the Federal government amicably"

Esar Andamas

“I hope the call to review the oil royalty would not be seen as a demand by the federal government but a reward for our unwavering loyalty and to support to the BN led government

The United Sabah Chinese Communities Association Kota Kinabalu (USCCAKK) president John Lim Yu Sin

“Personally and as a Sabahan, I believe the government should take a look at the rate of oil royalty given to Sabah. The time has come to give it serious attention because the five per cent was decided based on an agreement more than forty years ago. Today is a new era and it must be reviewed.

Sabah Puteri Umno chief, Musliati Moslimin

“I am hopeful that the discussion can be made smoother with the good relationship between the state and federal governments"  The PBS Youth chief Datuk Jahid Jahim

Well people, this is for our future, for our next generation. I don't get Why must we against the effort? He try to fix the mess which is not done by him, and i can see that he is trying the best as he can. This is good news and people should support this effort not only for ourselves but also for our next generation. Think and make a wise decision. We are going to create a history which is surely will benefits to our people.

God Bless.

SabahBorneoAramaii

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