Malaysia to raise oil royalties for producing states from 5% to 20%

Malaysia Prime Minister Mahathir Mohamad's party had earlier promised to increase petroleum royalties for all producing states as part of a slew of economic and financial reforms.
Malaysia Prime Minister Mahathir Mohamad's party had earlier promised to increase petroleum royalties for all producing states as part of a slew of economic and financial reforms.PHOTO: EPA-EFE

KUALA LUMPUR (REUTERS) - Malaysia will raise oil royalties for its petroleum-producing states to 20 per cent from the current 5 per cent, Prime Minister Mahathir Mohamad said on Thursday (July 19).

"Everybody will get 20 per cent of the profit from their area," Tun Dr Mahathir told reporters in Parliament.

"So if the area produces a small amount, they get 20 per cent of the profit from the area. We will pay whatever is due to them."

Dr Mahathir's party had earlier promised to increase petroleum royalties for all producing states as part of a slew of economic and financial reforms in the lead-up to his surprise election win in May.