“These are two different concepts. We cannot just convert oil royalty into profit-sharing,” said Wee, responding to Economic Affairs Minister Mohamed Azmin Ali who said the law has to be amended to allow the implementation of the 20% oil royalty promised to four oil-producing states.

Azmin told the Dewan Rakyat the 20% oil royalty, part of PH’s manifesto in the recent general election, could only be implemented after amendments were made on the Petroleum Development Act 1974.

Azmin said this was because the 20% should be on the net profit and not from gross income.

Wee said PH had now realised that the promise of 20% oil royalty to states was not easy to fulfil.

“Now they have realised this is not possible. Previously, we (Barisan Nasional) were asked to increase the oil royalty but it was not possible and could not be executed,” said the Ayer Hitam MP.

Wee said BN had also wanted to raise the oil royalty to 20% “but we realised there are too many costs and difficulties involved”.

“We have to be pragmatic. It is for the new government now to fulfil their promise and not give new definitions,” he said.

“Just admit you can’t fulfil your promise and be frank about it.”

20% oil royalty on profit, so wait for amendments to law, says Putrajaya