00:00There is a need for us to reassess the allocation to the state government.
00:09Former Prime Minister Dr Mahathir Mohamad says
00:12Malaysia must revisit how revenue is shared with its states,
00:16particularly Sabah and Sarawak,
00:18but insists patronage should remain above political bargaining.
00:22The former PM's remarks come amid renewed attention
00:25over Sabah's 40% net revenue entitlement
00:28and Sarawak's increasingly assertive push through Petros
00:31for greater upstream control,
00:33developments that have intensified pressure on Kuchajaya
00:36to re-examine federal-state financial arrangements.
00:40Mahathir acknowledged that Sarawak's request
00:42for a larger share of oil and gas revenue
00:44reflects its changing expectations.
00:47There is a need for us to reassess
00:51the allocation to the state government.
00:56Maybe 5% is too low.
00:59And we have to study how much is the contribution of Sarawak
01:05to the federation.
01:08Mahathir stressed that while revenue-sharing arrangements can be reviewed,
01:12the national oil company's operations must not be compromised
01:16or become the subject matter of political negotiations.
01:19He said the company must be allowed to operate based on commercial logic,
01:24not political pressure, whether foreign or domestic.
01:28I think Petrona should work as a private company
01:33and be affected by the market.
01:37If there is a demand from the market,
01:40then Petrona should meet the demand.
01:43Petrona should not be blocked from meeting the demand
01:47but to purchase gas from America which it may not need.
01:54Economic analyst Jamil Ghani said,
01:57Any move to accommodate Sabah and Sarawak
01:59should be handled through federal finances
02:01rather than by altering Petrona's operational structure.
02:04He added that the revenue-sharing debate is legitimate,
02:08especially given long-standing concerns in both states
02:11over how much federal revenue is collected from their economies
02:15compared with what is channelled back into local development.
02:19Putrajaya can review direct grants,
02:21refine the transfer formula
02:22or even adjust the dividends it draws from Petronas.
02:25What it should avoid is allowing fiscal disputes
02:28to spill over into Petronas' commercial decisions.
02:31Mirato, FMT.
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