The Sabah government hopes that Budget 2020, scheduled to be tabled in Parliament next month, will address the state’s demand for receiving 20 percent in oil royalties.

Chief Minister Mohd Shafie Apdal (photo) said Sabah was among the key oil and gas producing states in the country.

"We are conscious and aware of the financial constraints at the federal level, but we need finances to develop Sabah.

"Our hope is not only for what we have discussed in relation to the Malaysia Agreement 1963 (MA63) to be realised, but that this oil (royalty issue) should be looked into as well," he said when met by reporters after visiting the Sabah Shell Petroleum Company Limited’s office in Kota Kinabalu today.

He was asked to comment on Sabah's hopes for Budget 2020 which will be tabled on Oct 11.

Mohd Shafie said Sabah was also far behind in terms of infrastructure.

"So our hope is to make sure that we have an approach to not only place the oil sector in a sustainable position but for investors to come and make investments and profits to be realised.

"Besides providing job opportunities, we also want the state government to benefit," he said.

On his visit to the Sabah Shell office, he said it was important for the state government to establish good relations with companies in the sector for the betterment of the state.

"Companies investing in the state need to realise their profits, and (we need to) ensure that they can remain here, not only as investors but also to provide jobs for Malaysians, including those from Sabah.

"The important thing is to ensure that the oil sector will be able to grow, as we know that not only Malaysia but Sabah largely depends on the income generated through oil and gas," Shafie said.

- Bernama