Don't give up on your demand for better oil and gas royalties, Guan Eng tells Adenan

GEORGE TOWN, PENANG, Nov 7, 2014: Penang Chief Minister Lim Guan Eng has told his Sarawak counterpart Adenan Satem not to give up demanding for an increase in the oil and gas royalties from 5% to 20%, from the federal government.

"Don't settle for anything less," he said when speaking at a dinner hosted for members of the Sarawak media on Wednesday night.

 Lim Guan Eng (front row, centre) with members of the Sarawak media and DAP posing for photograph after the dinner on Nov 5.

He said that the Sarawak government should not accept some form of compensation in lieu of the royalty increases, but must insist that the federal government meet the demand for the 20% royalties  increase,

He said that the federal government could play around with the compensation issues, like promising of providing more money for development projects, and at the end of the day, Sarawak will not be happy.

He said many promises have been made in the past, like the promise of building the Pan Borneo Highway, which have yet to be fulfilled.

He said that the pledge to build the highway had been repeated many times.

"DAP will support Sarawak in demanding that the federal government increase the royalties from 5% to 20% as the oil and gas resources belong to Sarawak," Lim, who is also the DAP secretary general, said.

Lim, however, expressed doubts that the federal government would accede to Sarawak's demand for the increase in royalties.

He suspected that obstacles will put on the way so the demand would not be met.

Sarawak is negotiating with the federal government and the national oil corporation Petronas on Sarawak's demand following a resolution adopted by the Sarawak State Assembly in May this year.

The resolution was unanimously supported by both the Barisan Nasional and Opposition state law makers.

Lim also briefly told that the Penang government, under the DAP-led Pakatan Rakyat government, is moving in the right direction.

He said that his government is based a clean administration and believes in private sector-driven economy.

Picture: Lim Guan Eng going over to the table where members of the Sarawak media were seated.

He said in the next sitting of the Penang State Legislative Assembly, he will table a RM900 million State Budget 2015.

He said Penang, under the BN government, had annual State Budget of RM400 million.

"But under the DAP, we have managed to increase the budgeted allocations every year," he said, indicating that a government based on a clean administration is possible.