Petroleum royalty for Kelantan to be discussed at federal level

TUMPAT: The federal government will discuss the matter of Kelantan’s petroleum royalty following a written request by its menteri besar, Ahmad Yakob.

In a Bernama report, economic affairs minister Mustapa Mohamed said Ahmad handed a letter to Prime Minister Ismail Sabri Yaakob last week, requesting that the federal government discuss three issues concerning Kelantan, namely oil, state development and water supply.

“The prime minister has ordered that these issues be discussed immediately.

“They are now under consideration by the federal government,” Mustapa told reporters after a working visit to Kampung Kelong Hujung here today.

Mustapa was asked on finance minister Tengku Zafrul Aziz’s statement in Parliament last Thursday that Petronas would not make cash royalty payments to any state in the peninsula, including Kelantan.

Tengku Zafrul said it was because the petroleum production site was operating out of Kelantan’s waters.

Kelantan, however, will continue to receive goodwill payments, or wang ehsan, for petroleum produced near its coastline, he said.

Meanwhile, when met by reporters at the launch of the state-level Malaysian Family Month in Kota Bharu, Ahmad said the state government would seek a written explanation from the finance minister on the matter.

He said Tengku Zafrul’s response was not in line with the federal government’s previous statement on petroleum royalties.

“For the record, the federal government, through the National Finance Council which met on June 7, 2018, decided to abolish the wang ehsan programme, and for cash payments for petroleum royalty to be channelled directly to state governments,” he said. — Free Malaysia Today