By MARK RAO / Graphic By TMR

Oil royalties paid to Sarawak should be based on revenue generated rather than profit as what was promised by the current ruling administration, said Gabungan Parti Sarawak (GPS).

“What is clear about the Sarawakians’ expectations of the Pakatan Harapan-led government is to fulfil the promise in its manifesto to grant a 20% royalty based on gross revenue and restore the rights of Sarawak that have eroded,” GPS chief whip Datuk Seri Fadillah Yusof said in a statement yesterday.

This remark was made in response to Economic Affairs Minister Datuk Seri Mohamed Azmin Ali’s statement that the 20% oil royalties to be paid to oil-producing states will be based on net profit and not revenue generated of the respective projects.

Currently, both Sarawak and Sabah are paid a 5% oil royalty for oil and gas development works in the respective states, while Terengganu and Kelantan have been granted compassionate funds since 2000 and 2010 respectively.