AMID growing murmurs of discontent at Putajaya’s continued denial of Sarawak’s rights as set in the Malaysia Agreement 1963, which has also put a strain on the relationship between the state and federal powers, Chief Minister Abang Johari Openg today reiterated there was no need for Sarawak to exit Malaysia.

He, however, reminded leaders on the peninsula that this did not mean that the state could not demand for the restoration of its rights as enshrined in the federal constitution.

The chief minister said Sarawak’s loss of state powers “must be rectified and settled amicably through negotiation”.

The discontentment of Sarawak, he said, was not good for the overall wellbeing of Malaysia.

He said it had seemed at first that the promises to Sarawak would be fulfilled.

“Sarawak decided to form Malaysia with Malaya, Sabah and Singapore for reasons that were completely valid at the time.

“Sarawak’s security against hostile neighbours and internal threat was secured with the help of Malaya and Commonwealth countries.

“But along the way, intentionally or otherwise, Sarawak’s rights were infringed without Sarawakians being aware of it.

“This of course has brought about much dissatisfaction to the people of Sarawak,” he said in his Hari Sarawak address, in Kuching, today

The unhappiness has in recent years been stoked by Petronas’ attempt to lay claim to the state’s prized oil and gas resources.

The national oil company in May filed for leave of application in the Federal Court seeking a determination of the Petroleum Development Act 1974 and its position on the regulatory controls of upstream oil and gas activities in Sarawak. 

Petronas also sought a declaration that Sarawak’s Oil Mining Ordinance (OMO), which the state argues gave it the legal powers to regulate the oil and gas industry, had been repealed by the PDA, hence rendering Sarawak’s state-owned oil company, Petros invalid as a regulatory authority over the state’s oil and gas resources.

The apex court, however, dismissed Petronas’ application ruling that it should have sought determination in the High Court.

Just a few days ago, Prime Minister Dr Mahathir Mohamad had angered the people of Sarawak and Sabah with the announcement that the payments the two states would receive for their oil and gas would no longer be in the form of royalties but calculated from the profits.

Abang Johari is adamant the oil is Sarawak’s.

“This law (Oil and Mining Ordinance 1958) has never been repealed and we have never agreed to any federal laws to supersede OMO 1958.

“It is provided for in MA63 that laws affecting state rights can only be applicable to and valid in Sarawak after passage in our DUN.

“No, Sarawak never agreed to the Petroleum Development Act 1974 passed by Parliament and we maintain that OMO 1958 cannot be implicitly or impliedly repealed by PDA 1974.” 

He said the Federal Court’s rejection of Petronas’ application was a “victory of the people of Sarawak”.

He said the ruling meant Sarawak had the full regulatory power over persons and companies, including Petronas, involved in oil and gas activities, on shore and offshore, in the state.

The chief minister however also gave his assurance that the state government would “always be very rational and business friendly” in its dealing with Petronas.

Sarawak Day was first celebrated in 2012 when Abdul Taib Mahmud, the governor, was the chief minister.

It was declared a public holiday in Sarawak in 2016 by Abang Johari’s predecessor Adenan Satem who died in office early last year. – July 22, 2018.