THE saga between the Sarawak government and the Federal government has concluded with a landmark joint declaration of partnership, recognising Sarawak’s rights to its gas resources.
The significant outcome reveals Sarawak’s triumph, showcasing unwavering negotiation skills and the political acumen of our leaders. This success is a result of a diplomatic approach and collaborative efforts, carried out in good faith and mutual respect.
Despite the potential confusion surrounding the entire episode, it should be noted that Sarawak entered the negotiation with little to lose but everything to gain.
As the saying goes, “There are many ways to skin a cat”. This has been evident, especially with Sarawak’s introduction of the State Sales Tax (SST) on oil and gas products.
Previously, Sarawak only received a five per cent oil royalty for many years, which was insufficient to cover the development costs of state-funded projects.
However, thanks to the initiative by the Premier and the Sarawak government advocating for the implementation of SST, the revenues contributed to Sarawak’s coffers have proven to be a game-changer.
The accelerated transformation seen in recent years, whether in infrastructure, economic development, education, social initiatives or welfare assistance, is a direct result of the increased revenues and additional income received by Sarawak.
In 2024, Sarawak achieved a record-high revenue collection of RM14.2 billion. It is plausible to expect further improvement this year, given the recent developments.
The recognition of PETROS as the gas aggregator could potentially revolutionise revenue generation, marking another strategic move by the Premier.
These revenues drive growth, enabling prosperity for the people of Sarawak, both presently and in the future.
While the positive impacts of the transformation in Sarawak are evident, there is still much work to be done. This ongoing development process requires additional funding to ensure comprehensive coverage across all regions of Sarawak, leaving no one behind in benefitting from progress.
Although the economic benefits and revenue outcomes will unfold over time, it is clear that Sarawak’s future is promising, guided by capable leadership and a commitment to progress.
The joint declaration underscores the critical partnership between Sarawak and the Federal government. The Premier described it as a “significant milestone in the evolving partnership between Sarawak and the Federal government within the spirit of federalism”.
Sarawak’s dedication to collaborating closely with the Federal government, PETRONAS and PETROS to implement the joint framework sets the stage for realising Sarawak’s gas potential and advancing towards a cleaner, sustainable energy future.
Aligning with Sarawak’s ambition to become the energy hub in the ASEAN region, this declaration is a historic triumph for Sarawak legally, economically and symbolically.
Beyond a mere policy victory, it stands as a testament to Sarawak’s diplomatic prowess and political maturity. Credit is due to Sarawak, led by the Premier and the GPS government, for their adept political conduct in securing their interests without resorting to disruptive tactics.
With PETROS now acknowledged as the gas aggregator, Sarawak is better positioned to attract investments, foster industrial growth and create employment opportunities, in line with the Premier’s vision of a prosperous, self-reliant Sarawak founded on fairness, partnership and strategic planning.
The path forward demands effective execution, bolstered by clear direction, dedicated leadership and public backing, positioning Sarawak on the brink of transformative growth. The stability of Sarawak’s political landscape has enabled its leadership to steer a course towards a promising future.
As we look to the future, it’s crucial to ask why change a winning formula. Politics, after all, should serve the common good, a principle exemplified by Sarawak and its Premier.
This declaration signifies not just a victory but a pivotal moment and a launch pad for continued growth and progress.
Disclaimer:
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at nazmixsuhaimi@gmail.com.
