THE Sabah legislative assembly today passed amendments to Sabah Land Ordinance, expanding the state’s territorial rights, including ownership towards the seabed and subsoil, extending right up the continental shelf.

The house unanimously supported the inclusion of two additional paragraphs to the points under section 4 of the Sabah Land Ordinance (Cap68) that defines the land tariff.

Newly added para “f” states Sabah’s ownership on all rivers, slopes, lakes, water course on land while para “g” is on seabed extending more than 320km from land.

Assistant Minister in the Chief Minister’s Department, Ariffin Asgali, said the amendments are in accordance to the state rights as before and during the formation of Malaysia.

“The borders of Sabah are as laid out in the Sabah Alteration of Boundaries 1954.  

“A similar provision is stated under Article 1 (3) of the Malaysia Agreement 1963 and also under the federal constitution.

“The matters defined the territorial rights of Sabah before Malaysia, which also define the Sabah borders.”

Supporting the bill, Tambunan assemblyman Jeffrey Kitingan said this will put an end to the dispute over oil rights.

“This will see that Sabah will hold rights over lands where Petronas presently is carrying out their operations. This is a good law and therefore, should be supported,” he said.

Balung assemblyman Osman Jamal said the amendments would allow Sabah to impose a sales tax on petroleum similarly like Sarawak.

“At present, Sabah would only charge a tax on the crude palm oil as most of the palm oil activities are carried on land. But now we would be able to tax over resources extracted over our seabed.”

He said this is also aligned with the state government’s move to impose a 5% tax on live and frozen fish exports.

The state law conflicts with the Territorial Sea Act 2012 and the Petroleum Development Act.

The approval of the amendment could see a change in the way Petronas operates off the waters of Sabah.

The move dictates the matter of ownership of territorial seas and waters and this means Sabah can exercise the power to grant licences for prospecting, exploration, mining and deep sea fishing. – November 15, 2018.