KUCHING: Despite securing several significant breakthroughs in negotiations with the federal government in recent years, Sarawak’s long-standing pursuit of greater control over its oil and gas resources remains the state’s biggest unresolved issue.
Political analyst Professor James Chin, Professor of Asian Studies at the University of Tasmania and one of the region’s leading experts on Sarawak and Malaysian politics, said while Putrajaya and the Sarawak government have made progress on several longstanding issues, including the transfer of the Bintulu Port Authority, the broader question of ownership and control over the state’s petroleum resources continues to define federal-state relations.
He said the issue that resonates most strongly with Sarawakians remains the amount of wealth generated from the state’s oil and gas resources and how much control Sarawak has over them.
“When you speak to Sarawakians, one issue that can immediately evoke a strong reaction is the amount of wealth taken from the state through its oil and gas resources.
“I would not necessarily say Sarawak has the upper hand when it comes to its relationship with Putrajaya. What has happened is that the state and federal governments have gone through a series of difficult negotiations, with some producing results while others have not,” he told Sarawak Tribune and Suara Sarawak in an exclusive interview.
Prof Chin described the recent transfer of the Bintulu Port Authority to the Sarawak government as an important milestone, saying it reflects the state’s gradual success in regaining greater authority over strategic assets.
However, he stressed that achieving meaningful control over Sarawak’s petroleum resources would ultimately require a renegotiation of the Petroleum Development Act 1974 (PDA 1974), which governs the ownership and management of Malaysia’s oil and gas resources.
While discussions between Putrajaya and the Sarawak government have continued for several years, he noted that no comprehensive agreement has yet been reached.
“Unfortunately, the major question of oil and gas rights remains unresolved.”
He said another closely related issue is ownership of the continental shelf, which could have significant implications for Sarawak’s resource rights depending on the outcome of an ongoing legal challenge initiated by Sabah.
He explained that the continental shelves of both Sabah and Sarawak were established under identical Orders in Council during the British administration, giving both states similar legal foundations.
“If Sabah succeeds in that case, Sarawak would have a strong basis to make the same argument and there would be no obvious reason why the same legal principle could not apply to Sarawak. The continental shelves of both Sabah and Sarawak were defined through Orders in Council during the British period, and those arrangements were made on the same day.”
Although the continental shelf dispute is often viewed as a separate legal matter, he said it is closely intertwined with the wider debate over offshore petroleum ownership and the constitutional rights of the two Borneo states.
“I believe the outcome of Sabah’s case could become an important reference point for Sarawak should the state pursue similar legal arguments in future.”
