MARANG  (July 22): The Terengganu state government will study the decision by the federal government to give a 20% royalty to petroleum producing states based on the profit they make.

Menteri Besar Dr Ahmad Samsuri Mokhtar said in principle, the Terengganu government would only agree if it benefited the state.

"But if the prime minister announced to give a 20% 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 yesterday.

On Friday, Prime Minister Tun Dr Mahathir Mohamad had clarified that the 20% royalty payment to petroleum producing states would be based on the profit obtained from the state concerned.

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