Four-fold allocation increase needed – CM
KUCHING: Sarawak needs four times the current quantum of allocations from the federal government in order to be able to develop good infrastructure throughout the length and breadth of the state, especially in the rural areas.
Speaking at the opening of the Sarawak Day celebration here yesterday, Chief Minister Datuk Patinggi Abang Johari Tun Openg said this is why the state wants its rights over oil and gas, as a channel to derive more revenue for development.
“Our current strong financial reserve is partly the accumulation of revenue from the oil and gas industry on our shores,” said Abang Johari to those present including Head of State Tun Pehin Sri Abdul Taib Mahmud and his wife Toh Puan Datuk Patinggi Raghad Kurdi Taib at the Celebration Square, Jalan Stadium.
Sarawak, he added, can expect to earn more from the gas industry as the state now has a stake of 10 per cent in LNG Train 9 and 25 per cent in LNG 3.
“This money will be given back to the people when we develop our rural water supply, construct more bridges and build more roads instead of just relying on the federal government which has the whole country to look after,” he added.
The Oil and Gas Mining Ordinance (OMO) 1958, he said further, was enacted even before the forming of the Malaysian Federation comprising Tanah Melayu, Sarawak, Sabah and Singapore.
The law, he pointed out, had never been repealed and the Sarawak state government had never agreed to any federal laws to supersede OMO 1958 and this is provided for in the Malaysia Agreement 1963 that laws affecting state rights can only be applicable to and valid in Sarawak after passage in the Sarawak State Legislative Assembly.
“No, Sarawak never agreed to the Petroleum Development Act (PDA) 1974 passed by Parliament and we maintain that OMO 1958 cannot be implicitly or impliedly repealed by PDA 1974. OMO 1958 gives the state government the power to regulate Sarawak’s oil and gas resources,” he stressed.
OMO 1958, he revealed, is also the main reason why Petros was formed to become the regulatory power over Sarawak’s oil and gas activities.
“We have gone to the Federal Court against Petronas and the court has declined to give leave to Petronas to declare that OMO 1958 is not valid. This initial victory was the victory of the people of Sarawak,” he said.
He added that this means that OMO 1958 gives Sarawak the full regulatory power over all persons and companies, including Petronas, involved in the activities of oil and gas, on shore and offshore, in Sarawak.
He, however, assured that the state government would always be very rational and businessfriendly in its dealings with Petronas as the national oil company.
“We also want to be always reasonable with all other players in the industry as any attitude to the contrary will not benefit Sarawak and the nation as a whole,” he said.
On another note, the Chief Minister asserted that there is no need for Sarawak to exit Malaysia.
“Being in Malaysia does not mean that we cannot ask for our legal rights based on the Malaysia Agreement 1963 and the Constitution. I believe now with our political independence through GPS we have a better and stronger platform to voice our opinion freely to protect the interest of Sarawak,” he added.
He also pointed out that the recent visit by Prime Minister Tun Dr Mahathir Mohamad is a testimony that the state government is able to develop a strong working relationship with the federal government despite being on a different political platform.
“We are very much honoured to have him in Kuching and be able to give him an overview of development in Sarawak. His visit is to ensure Sarawak needs the continuous attention from the federal government to ensure unhampered development for the sake of the people of Sarawak,” he added.
Also present at the celebration were Abang Johari’s wife Datin Patinggi Dato Juma’ani Tun Tuanku Bujang, Deputy Chief Ministers Datuk Amar Douglas Uggah Embas and Datuk Amar Awang Tengah Ali Hasan, Minister of Local Government and Housing Datuk Dr Sim Kui Hian, State Legislative Assembly speaker Datuk Amar Awang Asfia Awang Nassar, State Secretary Tan Sri Datuk Amar Morshidi Ghani as well as other state and federal dignitaries.