Dateline 2014-06-06, Malaysiakini:
As stated in my previous article, it is not wrong for Sabah to ask for an increase in oil royalty if it can prove that the billions of ringgit distributed by the federal government through various grants are insufficient to develop the resource-rich state.
Since 2008, Sabah has been one of the biggest beneficiaries of the federal financial allocation. It is also important for state leaders to convince Petronas and the federal government that the increase in oil royalty from 5 percent to 20 percent will not adversely affect the sustainability of oil production in Malaysia. While most leaders are harping on the issue continuously, none so far has been able to provide a viable solution to put an end to it.
But before the increase in oil royalty is to be considered, several factors must be put into consideration. It is wrong to assume that out of the 100 percent oil revenues that go to Petronas, only 5 percent is given to Sabah while the remaining 95 percent is ‘grabbed’ by the national oil company. This is the popular misconception among Sabahans.
…
Wata - Malaysian Oil and Gas Engineer 