Oil royalty unfair, just like water deal with Singapore: Sabah politician


On 5 Mar, Sabah assemblyman Jamawi Jaafar urged Prime Minister Dr. Mahathir Mohamed to consider Sabahan’s feelings on the oil royalty agreement.

Agreeing with Mahathir that Singapore is exploiting Malaysia’s water, Jamawi urged the federal government to consider Sabahans’ feelings and expectations on the issue of the oil agreement, pointing out that the rate in the water agreement is ridiculous and should be reviewed.

Jamawi argued that the Petroleum Agreement 1976 between the Sabah government and Petronas is no longer in line with the current needs of the state and that the 5% value is unreasonable in today’s context.

Sabah state government Chief Minister Shafie Apdal has reportedly requested for a 20% increase in oil royalty to build infrastructure for its people.

Jamawi hoped that the federal government will return Sabah’s rights under the Malaysia Agreement 1963 (MA63) and that they will take Sabah’s demands seriously.

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