The Terengganu government will study the decision by the federal government to give 20 percent royalty to petroleum producing states based on the profits they make.

Menteri Besar Ahmad Samsuri Mokhtar said that in principle, the Terengganu government would only agree to the royalty if it benefis the state.

"If the prime minister announces to 20 percent royalty based on profit , the amount could be less or more that what we have calculated before.

"Therefore, before making any decision, we will have to look thoroughly into it,” he told reporters at a fund raising event for education here today.

Yesterday, Prime Minister Dr Mahathir Mohamad clarified that the 20 percent royalty payment to petroleum producing states would be based on the profit obtained from the state concerned.

In the Parliament sitting on July 19, Mahathir said the Pakatan Harapan government was committed to fulfil the promises contained in its 14th general election manifesto, including on the 20 per cent royalty payment to petroleum producing states in the country.

- Bernama