Sabah company in demanding 20 pct oil royalty based on gross profit & # 39; – BorneoPost Online Borneo, Malaysia, Sarawak Daily News

Shafie speaks with reporters during a press conference intended to address the first 100 days of the new Sabah government. – Bernama picture

KOTA KINABALU: Sabah is willing to share her oil profits & # 39; & # 39; with the other states, but will remain steadfast in demanding the 20 percent oil royalty, based on gross profit.

Prime Minister Datuk Seri Shafie Apdal pointed out that the recent
20 percent oil royalty announcement by the federal government was not in line with Sabah's first request because the royalty that would be given would be based on & # 39; net profit & # 39; instead of & # 39; gross profit & # 39 ;.

"I believe this must be realized, we have to deal with it, I have told the Petronas President that the Sabah government and the state cabinet have confirmed that the 20 per cent (royalty) must be based on gross profit," Shafie told the reporters here at a press conference on Tuesday.

"We do not mind sharing it with other states, but what's important to us is that we want the 20 percent to be based on gross profits," said Shafie, who is also Sabah's finance minister.

He said he would meet with Prime Minister Tun Mahathir Mohamad and the Minister in charge of the Economy Department.

Shafie estimated that Sabah earns 20 percent, because it is one of the largest states in the country and it needs money for development.

He also said that the 20 percent royalty is needed to create more employment in the state, so that Sabahans no longer have to migrate to other states just to look for work.

In response to the 40 percent net revenue of the federal government to Sabah (as stipulated in Malaysia's 1963 agreement), Shafie said the demand for revenue should be realized.

"This is another problem that we have included in our manifesto, where we said that the demand for the 40 percent should be realized.

Of course we have already received an amount of RM 23 million per year since 1973, if I am not mistaken, & # 39; Shafie said.

He explained that numerous taxes had been collected by the federal government and called taxation taxes and income tax as examples.

"But we have never complained about that, and what is important to us is to ensure that we can share what has been contributed by the state government.

"We are the state – we only want to demand what has been collected from the state of Sabah," Shafie added.

Shafie said that the Sabah government is well aware of the fact that nearly 50 percent of the country's total oil production capacity comes from Sabah.

Earlier, the federal government would collect three forms of profit: the five percent oil royalty, the oil dividends and the oil taxes. By contrast, Sabah and Sarawak received only five percent oil royalty's each.

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