The issue of oil royalty in the state of Sabah has been raised by the opposition parties during the administration of Musa Aman, particularly demanding a minimum of 20 percent oil royalty return to the state. It is also linked to the development of Sabah, which is linked to its status as one of the poorest states in Malaysia. While Sabah possesses numerous land products, such as oil and natural gas, it fails to give a return to the development and welfare of the population. This article discusses the factors contributing to the demand for oil royalty revenue in the state of Sabah during the administration of Musa Aman. It employed the primary method by interviewing three politicians. Secondary sources were also used as additional input and support to this article. These were obtained through local newspaper, such as Daily Express as well as several online newspaper portals including Borneo Today, TheBorneoPost and mstar online. The results demonstrated three main factors that contribute to the demand for oil royalty revenue in the state of Sabah, namely the Federal Agreement of Malaysia 1963, Petroleum Development Act 1974, and the issue of poverty. The findings also suggested the need to examine the agreement between the Sabah state government and Petronas.
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Interviews
Interviewee No. 1 (2022) Former Member of House of Representative, 20 September, Kuala Lumpur.
Interviewee No. 2 (2023) Former Minister of Finance of Malaysia, 9 February, Kuala Lumpur. Interviewee No. 3 (2023) Former Prime Minister of Malaysia, 17 January, Kuala Lumpur.
