KUALA LUMPUR (July 29): The issue of cash payments from petroleum revenue to the Terengganu government does not arise, because no petroleum has been discovered and extracted within the state.

The Ministry of Finance (MOF) stated that any revenue from the petroleum fields off the East Coast of Peninsular Malaysia is found and obtained outside the state's territorial waters, which is beyond three nautical miles from the low-tide line of the territorial sea in accordance with the Territorial Sea Act 2012 (Act 750).

The ministry said that cash payments from petroleum revenue will be paid directly to the state if discovered and extracted within the territorial waters of three nautical miles obtained from the low-tide line in accordance with Act 750.

"However, the federal government has channelled royalty money to the state of Terengganu. As of 2023, the federal government had channelled RM958 million to the state of Terengganu to implement projects and programmes for the benefit of the people of Terengganu," it said.

The MOF said this in a written response in the Dewan Negara on Monday, responding to a question by Senator Datuk Razali Idris last Thursday regarding accountability in settling pending and scheduled payments estimated at over RM200 million for the Terengganu government for 2023 and 2024.

It added that the federal government is open to discussions and ready to consider proposals from the Terengganu government that can be mutually agreed upon to involve programmes and projects that can be financed through royalty allocations. 

https://www.theedgemarkets.com/node/720794