4 states receive RM60 bil royalty from Petronas

Sabah, Sarawak, Terengganu and Kelantan received cash payments totalling about RM59.8 billion from 2008 to last year.

KUALA LUMPUR: Petronas made cash payments of nearly RM59.8 billion to Sabah, Sarawak, Terengganu and Kelantan from 2008 to last year, Minister in the Prime Minister’s Department Mustapa Mohamed said.

He said the national petroleum company also paid the federal government RM282 billion from 2010 to 2019.

In a written reply in the Dewan Rakyat to a question from Lim Guan Eng (PH-Bagan), Mustapa said Petronas disbursed the agreed 5% royalty from petroleum directly to Sabah and Sarawak.

Kelantan and Terengganu received their payments through the finance ministry.

Overall, he said, about RM24.54 billion was paid to Sarawak, RM12.78 billion to Sabah, RM22.04 billion to Terengganu, and RM403.25 million to Kelantan.

Lim wanted to know the breakdown of cash payments made to each state, directly or indirectly.

He also asked if the resignation of Petronas president and chief executive officer Wan Zulkiflee Wan Ariffin was related to these payments.

Mustapa said Wan Zulkiflee made the decision to retire after 37 years of service with Petronas, and his resignation was unrelated to the cash payments.

He said Wan Zulkiflee’s appointment as Malaysia Airlines Bhd chairman was a recognition by the government based on his experience as well as success in steering Petronas through the challenging times.

It was also part of the government’s efforts to review the leadership of government-linked companies, he said.