KUCHING: Sarawak’s power to regulate its gas resources is legally sound and protected under the Malaysia Agreement 1963 (MA63).
Kota Sentosa assemblyman, Wilfred Yap Sau Sin, stressed that Sarawak’s position cannot be equated with the Peninsular states due to constitutional differences.
He was responding to remarks made by former Malaysia Petroleum Resources Corporation (MPRC) official, Jamil Ghani, who warned of federal-state regulatory overlaps following Sarawak’s enforcement against PETRONAS Carigali Sdn Bhd.
Jamil claimed that Sarawak’s move could lead other states to follow, creating a “regulatory nightmare” for Malaysia.
Yap said the comparison is flawed, as Sarawak holds special legal status as a founding partner in the Malaysian federation.
“Sarawak is not merely a state within Malaysia but an equal partner in the federation under the MA63.
“The Distribution of Gas Ordinance 2016 (DGO) is a lawful exercise of this authority, and PETRONAS, like any other entity operating in Sarawak, must comply with Sarawak laws.
“Unlike other states, Sarawak’s autonomy over its resources is enshrined in MA63 and protected by federal law,” he said in a statement.
The issue arose after the Utility and Telecommunication Ministry issued a notice to PETRONAS Carigali, citing the company’s operation of the Miri Crude Oil Terminal (MCOT) without a valid state licence, in breach of Section 7(e) of the DGO.
The company was given 21 days to comply or face penalties under Section 21A.
“The MCOT may have operated federally for decades, but that doesn’t exempt it from Sarawak’s laws,” Yap asserted.
He said Sarawak is not creating regulatory conflict but asserting lawful jurisdiction to maintain order within its own territory.
Yap urged commentators to avoid making inaccurate assumptions without first understanding Sarawak’s legal position under the Constitution and MA63.
“It would be proper for individuals like Jamil to first understand the legal and constitutional framework governing Sarawak’s rights before making sweeping remarks.
“MA63 is not a trivial matter – it is the foundation of Sarawak’s partnership in Malaysia,” he added.
He then reiterated Sarawak’s commitment to defending its legal rights while promoting cooperative federalism with the federal government.
“This is not about confrontation but about ensuring compliance with the law.
“Sarawak will continue to assert its rights in a manner consistent with the Federal Constitution and MA63,” he stressed.
