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KOTA KINABALU: Rising oil prices do not necessarily translate into higher State revenue as they are driven by global factors beyond Sabah’s control, said Datuk Seri Masidi Manjun.

The Finance Minister said revenue depends on multiple variables, including production levels and exchange rates, noting a stronger ringgit can reduce oil earnings when converted from US dollars. 

“Sometimes we think when oil prices rise, our revenue will increase, but that is far from the truth,” he said.

Assistant Finance Minister Datuk Ishak Ayub said Brent crude prices jumped from US$71 in February to US$103 in March, reaching US$106 on April 24, driven by Middle East tensions. 

However, he said the impact on revenue is moderated by currency strength and market conditions, with SST collections for March-April estimated at RM96.5 million, subject to change.