Oil Forum in Kota Bharu (UPDATED with BM Translation)

There is a failure to understand the origin of Federal powers over state resources. We have forgotten that the states existed prior to the Federation. The Federation only exists because the states were willing to vest their rights in it, such as their rights in oil.
Not the other way around.

By Tengku Razaleigh

At 9pm tonight, I will be addressing the people of Kelantan at the Stadium Sultan Muhamad Ke IV, on the oil royalties that are their sovereign right.

I have written on this issue before.

http://razaleigh.com/2009/11/28/oil-payments/

http://razaleigh.com/2009/07/31/letter-to-mb-of-kelantan-on-oil-royalties/

Here are the Vesting Deeds I referred to:-

The larger issue is State rights. Malaysia is a Federation of sovereign states. The Federal government has no rights over any petroleum resources except where these have been assigned to the Federal Government by the respective state governments. The novel mechanism we created for this assignment was Petronas.

The states vested all their rights in their petroleum resources in perpetuity to this entity incorporated under the Companies Act. In return Petronas bound itself to pay the respective state 5% of the profit oil from any oil found on or offshore of the state. I signed those undertakings with the Menteri Besar of each of the states.

Read more at: Oil Forum in Kota Bharu

Translated into BM at: http://gomalaysian.blogspot.com/2010/01/tengku-razaleigh-forum-minyak-di-kota.html