No urgency for oil review
Published on: Friday, June 21, 2013
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He said the five per cent royalty was based on the agreement signed between the State Government and Petronas on June 14, 1976 and as explained by Balung Assemblyman Datuk Syed Abas Syed Ali on Wednesday, 10 per cent of the oil revenue from Sabah is shared by Sabah and the Federal Government.
The remaining 90 per cent was used by Petronas and its partners to pay for the high exploration and production costs, he said, responding to the issue raised by several assemblymen when debating the motion of thanks on the State Government's Policy Speech delivered by the Head of State.
Musa, who is also State Finance Minister, said although the royalty was set at five per cent the State Government had been enjoying increases in payment from RM365.4 million in 2007 to RM941.25 million in 2012 based on the production of 28,156,504 barrels and 49,737,978 barrels in 2007 and 2012, respectively.
Winding up for the Finance Ministry on Thursday, he also reiterated that Petronas had invested in Sabah through the development of the Sabah Oil and Gas Terminal (SOGT) that is supported by a 300 MW Combined-Cycled Gas Power Plant in Kimanis to meet the State's power supply demand.
Besides, through the cooperation and assistance from the Federal Government and Petronas, the State Government was also in the midst of developing the oil and gas industry known as the Sipitang Oil and Gas Industrial Park (SOGIP).
Other projects by Petronas in Sabah were the Sabah Ammonia Urea (SAMUR) project that involved a RM2 billion investments and SAMUR 2 costing another RM2.6 billion in investment.
Responding to the proposal by Bingkor Assemblyman Datuk Dr Jeffrey Kitingan for the State Government to demand 40 per cent or two-fifth of the Federal Government's revenue from tax collected in Sabah by referring to the provision of Special Grant in Schedule 10 of the Federal Constitution, Musa said it was out of place.
The method of the Special Grant, he said, had already been updated as allowed under Article 112 D of the Federal Constitution. He also assured that discussion on the matter was also being held from time to time with the Federal Government.
Based on the Accountant General Department (Sabah) last year the Federal Government collected about RM4.43 billion and about 69.6 per cent or RM3.085 billion was collected by the Finance Ministry, particularly the Inland Revenue Board while about 18.5 per cent or RM818.5 million was income collected by the Customs Department.
The amount collected by the Federal Government from Sabah last year was also 18 per cent or RM683.33 million more than the amount collected in 2011, he said. "I have great pleasure to inform the august House that the Federal Government is spending more in terms of development allocation for Sabah than the revenue it is earning from the state," he said.
He said the Federal Government's spending in Sabah in 2012 was about RM9.08 billion, which was an increase of 11 per cent or RM926.49 million from 2011.
"So with the cordial relationship between the Federal and State governments we are confident that bigger allocation is being provided by the Federal Government to fund Sabah's development," he said.
Speaking to reporters after the adjournment of the State Assembly later, Musa expressed satisfaction with the commitment shown by the House members, especially BN backbenchers, in raising issues vital for the State's development.
"Overall, the House members have taken part actively in the question and answer session as well as debate by raising issues and interest of their respective constituents," he said.
Unfortunately, he noted the opposition assemblymen on the other hand were inclined to mislead the House by "twisting facts and exploiting issues for their narrow political interests."
"In fact, it is as though they do not understand or pretend not to be aware about the various efforts and successes of the BN government in struggling for the people and bringing development to all the areas in Sabah, including those won by them (opposition)," he said.
Towards this end, Musa said as far as the BN government is concerned it would proceed with its plans, especially to fulfil all the promises made in the Aku Janji election manifesto.
"What is more important, we need to continue to go down the ground, provide the best services to the people in our respective constituencies," he said. Speaker Datuk Salleh Tun Said adjourned the Assembly sine die at 6.03pm.
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