(Bernama) - The distribution of 20 per cent royalty and goodwill payment (wang ehsan) to oil producing states can burden national oil company Petronas which also assists in the development of other states in Malaysia, said Terengganu Malay Chamber of Commerce Malaysia advisor, Datuk Wan Md Albakri Md Noor.
He said the distribution of five per cent oil royalty to Sabah and Sarawak apart from goodwill payments to Terengganu were contained in agreements since Petronas was set up.
"If we were to look at the national revenue structure, oil is the largest source of revenue for the country which is also used to develop other states," he told Bernama when met here.
He said the special privilege given to oil producing states in the initial agreement with Petronas was that these states were still backward and in need of development.
According to him, the issue of royalty was raised by the opposition merely for political expediency and not for the agenda to develop the states involved.