Malaysia's Finance Ministry rejected assertions that Petroliam Nasional Bhd extracts 95 percent of oil revenues from Sabah and Sarawak, with Deputy Finance Minister Amir Hamzah Azizan clarifying actual distribution mechanisms during parliamentary proceedings. Production sharing contracts mandate that the national energy company remits 5 percent of gross output value to federal coffers and an equivalent portion to regional administrations before covering expenses, which consume roughly 80 percent of total receipts through operational spending and capital investments in exploration and extraction infrastructure.
Amir Hamzah explained that approximately 10 percent remains for division between Petroliam Nasional Bhd and commercial partners following tax obligations, while eastern states additionally collect 5 percent sales levies on finished petroleum products outside baseline calculations. The minister addressed concerns from Miri representative Chiew Choon Man regarding historical payment structures affecting Borneo territories over five decades.
Amir Hamzah explained that approximately 10 percent remains for division between Petroliam Nasional Bhd and commercial partners following tax obligations, while eastern states additionally collect 5 percent sales levies on finished petroleum products outside baseline calculations. The minister addressed concerns from Miri representative Chiew Choon Man regarding historical payment structures affecting Borneo territories over five decades.
