Kelantan Urged to Reopen Petroleum Royalty Dispute in Federal Court

KOTA BHARU, November 9, 2025 – The Kelantan state government is being urged to revisit its long-standing petroleum royalty claim by bringing the matter back before the Federal Court, in a renewed call for clarity and justice over the state’s rights to petroleum resources.

The appeal was made by Opposition Leader Datuk Mohd. Syahbuddin Hashim after Melor assemblyman Wan Rohimi Wan Daud once again raised the issue during the Third Meeting of the Third Session of the Kelantan State Legislative Assembly (Budget) at Kota Darulnaim today.

Mohd. Syahbuddin said the time had come for the dispute surrounding the Territorial Sea Act 2012 to be settled definitively in court, rather than remaining an unresolved political debate.

“If the petroleum truly belongs to us, let the court decide it once and for all. This issue has been repeated for years, yet we still have no conclusion,” he told reporters after the assembly sitting.

He noted that while the case had previously been filed in court, the state government later withdrew it — a decision that left many questioning the state’s commitment to pursuing its claim.

“The lawsuit was once submitted, but later pulled back by the state. That’s why people are still confused about where the issue stands,” he said.

The opposition leader added that the state’s efforts would receive full support from the opposition bloc should it decide to proceed with legal action. He said both Kota Lama assemblywoman Dr. Hafidzah Mustakim and Nenggiri assemblyman Mohd. Azmawi Fikri Abul Ghani were in agreement on the matter.

“We will stand behind the state government if this is truly about upholding Kelantan’s rights,” he said. “But we reject any attempt to use this issue as political theatre to mislead the people. What’s important is sincerity in seeking justice through proper legal channels.”

The Territorial Sea Act 2012 has long been the legal foundation of Malaysia’s maritime boundary, but its interpretation remains contentious in relation to Kelantan’s claim for petroleum royalties. The matter has resurfaced multiple times over the past decade, with renewed calls last year for the state to challenge the law’s validity at the Federal Court to determine the extent of its petroleum entitlement.

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