PAS-Umno's Muafakat Nasional will give all oil-producing states full royalties if the coalition takes over Putrajaya in the 15th general election, said Umno president Ahmad Zahid Hamidi.

"God Willing, we will have a new offer if the people give back their trust to us (Umno) together with PAS in the name of Muafakat Nasional.

"Not just the oil royalties as currently being sought by Terengganu and Kelantan state governments, but we will give full royalties to Sarawak, Sabah, Terengganu, and Kelantan as well as Pahang and other states," Zahid said today.

He was speaking at the launch of the Terengganu Umno convention today. His speech was streamed live on Facebook.

The previous BN government had been accused of either denying oil royalties or paying too little to oil-producing states.

When Pakatan Harapan took over last May, it pledged that oil royalties will be increased to 20 percent, although there are still some disagreements with Kelantan.

Terengganu, which is governed by PAS, has already received RM1.277 billion in royalties this year, taking into account a RM129 million cut for to pay off federal debts.

Meanwhile, Zahid said under a Muafakat Nasional government, the federal government would no longer allocate projects for the state.

Instead, he said the federal government would give direct funding to the states, so that they can decide what projects they want to build for themselves.