In Malaysia, an opposition-run state government is preparing for a court battle against the federal government over more than a billion dollars in oil royalties.br br The east-coast state of Kelantan is run by the Islam-based party Pas.br br State officials say the federal government owes Kelantan the money under agreements made -- but not honoured -- by state-owned oil company Petronas as well as the federal government.br br Al Jazeera's Veronica Pedrosa reports from the state capital, Kota Baru.