IPOH, April 25 — The federal government’s approach toward petroleum royalty payments to state governments should be viewed within the context of development project implementation and should not be used as cheap political capital by the opposition to gain public support.
Political Secretary to the Minister of Finance, Muhammad Kamil Abdul Munim, stated that this step is an existing mechanism involving coordination between the federal and state governments to ensure funds are utilised effectively.
He stressed that the goal was to ensure these special funds are not used solely to cover salaries and emoluments, but are instead coordinated between the Ministry of Finance and the state government to guarantee that projects benefit the people and are monitored to prevent leakage or wastage.
His comments were following media reports on April 23, where the Terengganu Government revealed that a cumulative total of RM2.25 billion in petroleum royalty payments has not been channeled into the state government’s account since 2023.
In other developments, Muhammad Kamil noted that the implementation of the MADANI Mart initiative uses a different approach compared to the previous Kedai Rakyat 1Malaysia (KR1M) model.
According to him, while KR1M involved large-scale use of government funds, MADANI Mart is implemented through collaboration between Yayasan MADANI and private parties interested in the retail business.
He added that unlike the KR1M method – where items like rice, sugar, and milk were rebranded under the KR1M label – the current initiative maintains existing market brands.
Entrepreneurs interested in running these businesses must provide their own capital, while Yayasan MADANI provides technical assistance and operational coordination to ensure uniform implementation.
Additionally, he stated that the government remains open to feedback and suggestions to ensure these facilities truly benefit the public, particularly low-income groups. — Bernama
