KUALA TERENGGANU: Rather than depend entirely on oil and gas royalties, the state government should explore alternative sources of revenue.
Sultan of Terengganu Sultan Mizan Zainal Abidin said this as he warned the administration of the dangers of over-reliance on natural resources as world crude oil prices were unpredictable.
Speaking at the opening of the first session of the 14th state legislative assembly at Wisma Darul Iman, here, today, the sultan said the state had lost about 40 per cent of its revenue since 2016.
The sultan urged the new Pas-led state government to ensure that the Terengganu Petroleum Council (TPC), which was formed last year, would safeguard the sovereignty of the state as the largest producer of oil and gas in the peninsula.
“Use the TPC as a platform in dealing with the royalty issue and claims on the Bertam oil well, so that there are greater business and job opportunities in the industry,” he said, adding that the state administration must work closely with the Federal Government.
He also urged the State Revenue Committee to frame, plan and execute programmes that would uplift the people’s socio-economic status.
“Be aggressive and proactive in improving revenue collection through taxation for land transactions, rocks and minerals, raw water and hotel accommodation,” he added.
“Exploit the natural resources of idyllic islands and beaches like the Setiu Wetlands, Pulau Redang, Pulau Perhentian, Pulau Kapas and Tasik Kenyir to draw in more tourists.”
He also expressed hope that the state would attract more foreign direct investment in the manufacturing and industrial sectors to complement the services, construction and agricultural sectors.
“Draw in capital-intensive and high-technology investments in biotechnology, petrochemicals, steel manufacturing, silica and agriculture-based industries.
“I hope the new government will ensure the continuity of its predecessor’s initiatives, to ensure that Terengganu becomes a developed and high-income state – as per the motto: ‘Terengganu Forward, Grateful, Prosperous’.
“I have been informed that the state’s gross domestic product grew 5.9 per cent last year, compared with 3.1 per cent the previous year, thanks to development in the services, construction and agricultural sectors.”
The ruler stressed the need for prudence and careful planning in managing this year’s estimated RM1.815 billion state revenue collection to ensure that there was a positive economic impact on the state.
“Priority should be given to programmes that reduce the cost of living and improve the wellbeing of the people through high-skilled education, ample jobs, religious facilities and housing.
“Projects that benefit the people should be continued and improved if the state’s coffers permit,” said the Sultan.
“For instance, new reservoir and water treatment plants in Bukit Sah, Kemaman (225 million litres per day) and North Kuala Terengganu (120 million litres per day) can ensure clean piped water supply for Terengganu until 2050.”
Sultan Mizan commended the state for carrying out various initiatives to help the poor, including supplying 20 cubic metres of free piped water, RM500 annual medical card for private clinics, and MyBas services and financial aid.
He noted that 560 Ujian Pencapaian Sekolah Rendah students had scored 6As in their Standard Six examinations last year, compared with 271 in 2016; while the state achieved an overall average grade of 4.90 for last year’s Form Five Sijil Pelajaran Malaysia examination.
Present was Menteri Besar Dr Ahmad Samsuri Mokhtar, who is Rhu Rendang assemblyman, and 31 newly sworn-in assemblymen.
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