Review Sabah, S’wak allocations but leave Petronas alone, says Mahathir

Free Malaysia Today

The former PM says federal-state negotiations to revise revenue sharing arrangements should not compromise the national oil company’s operations.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/11/26/review-sabah-swak-allocations-but-leave-petronas-alone-says-mahathir   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/11/26/kaji-semula-peruntukan-sabah-sarawak-jangan-kacau-petronas-kata-dr-m   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews

Transcript

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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