Tun Dr Mahathir Mohamad arrives at the National Finance Council Meeting in Putrajaya June 7, 2018. ― Picture by Miera Zulyana

PUTRAJAYA, June 7 — Putrajaya has agreed to pay royalties to all oil-producing states, Terengganu MB Ahmad Samsuri Mokhtar said today.

He said the assurance was given by Prime Minister Tun Dr Mahathir Mohamad during the first National Finance Council meeting under the Pakatan Harapan (PH) government here earlier that was also attended by Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail and the mentris besar of Kelantan, Perak, and Johor as well as the secretaries-general of ministries.

“Tun had informed that the state governments that are entitled for oil royalty will have the payments channelled straight the state administration,” Ahmad said.

He said the amount and date for payment has yet to be discussed, but added that Sabah and Sarawak will receive the royalties too.

“The quantum will be informed later. The current rate is at 5 per cent, but was channeled to the state central agency now it will be direct to the state government,” Ahmad said.

The Rhu Rendang state assemblyman also said his administration is thankful for the RM100,000 allocation for Opposition MPs, even though the amount is less than that budgeted for PH MPs.

“We appreciate the allocation even though the amount is not the same.

“A handout is a handout. We appreciate the federal government's commitment to help the state governments despite of different political parties,” said Ahmad.

Yesterday, Dr Mahathir announced that the government will provide an allocation of RM500,000 for MPs of the ruling party and RM100,000 for Opposition MPs.

The allocation will be disbursed before Hari Raya.