PETALING JAYA: The federal government will not pay oil royalty to any state in Peninsular Malaysia, including Kelantan, finance minister Tengku Zafrul Aziz said.
He said Kelantan will continue to receive “wang ehsan” (compassionate money) for petroleum produced off its coast.
In a written reply to the Dewan Rakyat, Tengku Zafrul said although petroleum production is being carried out close to Kelantan, it is taking place outside the state’s waters.
He said the “wang ehsan” is to help Kelantan implement projects and programmes that will benefit the people.
He was responding to a question from Ahmad Fadhli Shaari (PAS-Pasir Mas) on whether the federal government will be paying Kelantan oil royalty, as claimed by the state government.