Sabah, Sarawak united on MA63, oil royalty, affirm CMs


Desmond Davidson Jason Santos

Sabah Chief Minister Mohd Shafie Apdal and his Sarawak counterpart, Abang Johari Openg, during talks at the latter's office today. Shafie is on a two-day trip to Sarawak. – Pic courtesy of Sabah CM's Dept, October 11, 2018.

SABAH and Sarawak will not be “singing different tunes” in their demand for complete compliance with the Malaysia Agreement 1963 (MA63) and an increase to 20% in oil royalty, said the chief ministers of the two states after their meeting in Kuching today.

“We are on the same page, although we did not discuss the matter in detail,” said Sarawak Chief Minister Abang Johari Openg after his meeting with his Sabah counterpart, Mohd Shafie Apdal, at his office in Petra Jaya.

“You can be sure that (we are on the) same page because the signing of the agreement (MA63) was done by both regions,” said Shafie.

“We have a common interest.”

He said to realise the two states’ common goals, “we have to be together, to ensure that our voices are the same and we are not singing different tunes”, as the Pakatan Harapan government prepares to table amendments to provisions in the federal constitution disputed by Sabah and Sarawak.

Minister in the Prime Minister’s Department Liew Vui Keong on Monday said the amendment to Article 1(2) of the constitution, which downgrades the status of Sabah and Sarawak as equal partners in Malaysia to one of 13 states, will be done during next week’s parliamentary session.

Abang Johari earlier said the amendments should be made “holistically” and “in totality”, and not just to Article 1(2).

He also opposed the formation of a special cabinet committee to look into the disputes and non-compliance with MA63, saying he prefers the committee to be modelled after the Inter-Governmental Committee set up by the British government in 1961 to look into the formation of Malaysia.

In response, Liew said he is willing discuss the matter with Abang Johari.

Sarawak Chief Minister Abang Johari Openg says the state and Sabah are on the same page. – Twitter pic, October 11, 2018.

Shafie said realising the dreams of Malaysia’s forefathers from Sabah and Sarawak, and ensuring the interests of the people of both states, are of utmost importance to the two chief ministers.

“I think it’s high time for us to realise that.”

However, he said, Malaysians in the peninsula should not take Sabah and Sarawak’s demands to mean the two states do not love the country.

“We love Malaysia. But what is due, and what had been agreed upon by our forefathers, we have to realise that.

“To realise that, we have to fulfil what has been stated. If there are adjustments to be made, let’s discuss them.”

Shafie said Sabah and Sarawak agreed to the formation of Malaysia through peaceful negotiations, and there is nothing to suggest that the demands made by the states now are not peaceful in nature.

He reiterated that both states’ demand for an increase to 20% in oil and gas royalty from the current 5% is based on gross profit, not net profit.

Shafie said he is aware of Petronas’ grouses on operational costs, but added that this has been going on “for years, since 1974”.

Sabah Chief Minister Mohd Shafie Apdal says Malaysians in the peninsula should not take Sabah and Sarawak's demands to mean the two states do not love the country. – The Malaysian Insight file pic, October 11, 2018.

“There must be some adjustments. I don’t think Petronas will make a loss. We are not asking for 100%. We are asking for only 20%, a little bit of what is due to us.”

While Sabah and Sarawak “don’t mind sharing our wealth with the rest of the country”, he said, those in the peninsula must realise that some 50% of the oil produced in Malaysia comes from Sabah.

Shafie is on a two-day visit to Sarawak. Tomorrow, he will call on Sarawak head of state Abdul Taib Mahmud.

Accompanying Shafie is his wife, Shuryani Shuaib, state Education and Innovation Minister Dr Yusof Yacob and state Infrastructure Development Minister Peter Anthony.

Shafie said he enquired about the possibility of Sabah buying surplus electricity from Sarawak, adding that in-depth discussions on the matter will be held soon.

If Sarawak offers a good price, he said, it would make better business sense to buy from a neighbour instead of setting up costly power plants in Sabah.

“If we can purchase power from Sarawak at a reasonable price, then why not?”

He added that the cost of producing power in Sarawak is far lower than in Sabah.

Shafie said Sabah will encourage Sarawak to produce certain vehicle parts when the former’s automative sector takes off.

Tan Chong Motors has indicated its intent to set up a vehicle assembly plant in Sabah. There is a high demand for trucks in both Borneo states.

Shafie said there could also be joint promotions on tourism, so that visitors to one state will make a trip to the other as well. – October 11, 2018.


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Comments


  • To be entitled to 20% of the gross profit, the States should be prepared to bear the revenue costs (of up to 20%) ie 20% of the production/ operating costs - only then it would be fair.
    It would be an imbalance if Petronas bears the 20% of the operating / production costs, whilst giving up the 20% revenue to the states.

    Posted 7 years ago by Thiruchelvam Thirunavukarasu · Reply