Tuesday, 17 March 2026

Legal challenge: Sarawak to wait for Federal Court decision

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Saferi (left) and Fong (right) in a photo after the judicial review. Photo: TVS

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PUTRAJAYA: Sarawak will wait for the decision of the Federal Court before any alignment of petitions is made to determine the constitutionality and continued application of federal petroleum laws in the state.

According to TVS, Sarawak Attorney General Datuk Seri Saferi Ali said this follows the Federal Court’s decision today to allow an application by PETRONAS for a legal reference concerning the clarity of the regulatory framework governing petroleum operations in Sarawak.

“The court has just made a decision granting permission to PETRONAS, essentially on the basis that they have an arguable case.

“At this stage, Sarawak also has its own petition, and we will see whether the petitions will be heard together,” he told reporters at Istana Kehakiman here.

Meanwhile, State Legal Counsel Datuk Seri Fong Joo Chung said the state is prepared to re-argue the matter following remarks in the court’s decision that the legal issues raised are arguable.

“Today the court decided that it is an arguable case — not necessarily a strong one — but one that can be brought before a larger bench of Federal Court judges.

“So we will need to present the same arguments again before a bigger panel of judges,” he said.

The Federal Court ordered PETRONAS to file its petition within 21 days after allowing the application for a legal reference regarding the clarity of the petroleum operations framework in Sarawak.

Chied Judge of Malaya Datuk Seri Hashim Hamzah ruled that there were issues that warranted hearing and determination by the court.

During the proceedings, PETRONAS was represented by lawyers Cyrus Das and Khoo Guan Huat.

On Jan 10, PETRONAS filed the application under Article 4(4) of the Federal Constitution.

Previously, the Sarawak government had also filed a petition in the Federal Court challenging the validity and continued application of three federal laws — the Petroleum Development Act 1974, Continental Shelf Act 1966 and Petroleum Mining Act 1966.

Sarawak argues that based on the Malaysia Agreement 1963 and related constitutional instruments, sovereignty over petroleum resources within Sarawak’s boundaries was transferred to the state by the British government on Malaysia Day, rather than to the federal government.

The state therefore maintains that the federal laws should no longer apply to Sarawak since June 2012 under Article 150(7) of the Federal Constitution.

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