Anwar allocates RM1.55b for Terengganu’s development despite royalties shortfall

PRIME Minister Datuk Seri Anwar Ibrahim highlighted the allocation of RM1.55 bil towards the development of Terengganu in the preceding year, underscoring a notable disparity between this figure and the actual petroleum royalties received by the state, which amounted to only RM786 mil.

Anwar, who also serves as the Finance Minister, noted that the development expenditure for the PAS-led state witnessed a substantial increase, reaching RM1.59 bil for the current year. He said that the total petroleum royalties for Terengganu surged during his administration compared to the previous period, with only RM399 mil recorded in 2022.

“I’ve mentioned this in Parliament, and the second finance minister (Amir Hamzah Azizan) reiterated it, but they (the opposition) claim that we’re being cruel… They say this is Madani-style cruelty.

“In fact, the federal allocation to Terengganu under the unity government exceeds that of the Perikatan Nasional government’s era,” he stated at an assembly for the ministry’s staff this morning.

However, Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar raised concerns regarding arrears in oil royalty payments for the year 2023. Samsuri pointed out the importance of settling outstanding oil royalty dues, stating that the government would not want to leave a legacy of failure in this regard.

Previously, the Kemaman MP had highlighted discrepancies in petroleum royalty disbursements, citing a significant variance between the received amount of RM510 mil and the estimated RM1.524 bil as per the 2023 budget.

Anwar clarified that funds allocated under the category of “wang ehsan” are directed towards public projects in the state and not routed through the Terengganu government.

“There are urgent programmes or needs, for example erosion in Tasik Kenyir, for which we allocate funds to expedite the project, and part of it, of course, comes from the wang ehsan.

“For small projects, projects for the people, we utilise the oil royalties… we don’t divert that money to other ministries, departments, or states. The funds are solely for Terengganu,” he further added.

Moreover, he assured that funds derived from oil royalties are exclusively utilised for projects benefiting the people of Terengganu, reiterating that no diversions to other ministries, departments or states occur.

According to him, this approach is consistent across states receiving petroleum royalties, including Sabah, Sarawak and Kelantan. – March 21, 2024

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