There must be open dialogue, mutual respect
Published on: Sunday, June 08, 2025
Published on: Sun, Jun 08, 2025
By: Datuk Roger Chin Text Size: By working together, all stakeholders can build a brighter future for Malaysia, one that benefits all its citizens. A Legacy of Discontent - Resolving Sabah and Sarawak's Oil and Gas Impasse Sabah and Sarawak, the emerald jewels of Borneo, are the economic powerhouses of Malaysia. Their vast oil and gas reserves fuel the nation's growth, yet a deep sense of discontent threatens to shatter this prosperity. The root of this tension lies in the unresolved issue of oil and gas rights, a legacy of historical promises and contemporary disagreements.
Advertisement This paper delves into the complexities surrounding Sabah and Sarawak's claims, arguing that a critical review of existing frameworks, coupled with open dialogue and a commitment to equitable resource sharing, is essential for achieving a lasting solution. Broken Promises - The Malaysia Agreement of 1963 (MA63) and the Petroleum Development Act (PDA) The Malaysia Agreement of 1963 (MA63) stands as a cornerstone document, promising significant autonomy for Sabah and Sarawak over their natural resources, including oil and gas. However, the Petroleum Development Act 1974 (PDA) appears to contradict this very foundation.
Advertisement Established under the cloak of a national emergency, the PDA vested sole authority over Malaysian oil and gas in Petronas, the national oil and gas company. This move by the federal government significantly altered the power dynamic, raising concerns about its adherence to the spirit and letter of MA63. Questioning Legitimacy and Transparency - Deeper Scrutiny Needed Legal scholars raise serious concerns about the PDA's legitimacy. Firstly, the absence of ratification by Sabah and Sarawak's state assemblies potentially violates Article VIII(2)(a) of MA63, which guarantees their control over their natural resources. This unilateral action by the federal government disregards democratic processes and undermines the autonomy promised to these resource-rich states. Secondly, the timing of the emergency coinciding with heightened racial tensions in 1974 necessitates a deeper examination of its true purpose. Was it a genuine crisis, or a convenient justification for a power grab over valuable resources? Scrutinizing historical records and emergency justifications becomes crucial in this context. Beyond legalities, the PDA's lack of transparency adds fuel to the fire. There's no record of citizen consent in these resource-rich states, and the current revenue-sharing formula within the PDA remains shrouded in secrecy. This lack of transparency fuels resentment, as vast wealth is extracted from Sabah and Sarawak with minimal reinvestment in these states. Statistics paint a stark picture - a 2022 World Bank report indicated that Sabah and Sarawak have a GDP per capita significantly lower than the national average. Additionally, these states consistently rank lower in metrics like road quality and access to healthcare compared to the developed peninsular states. The Human Cost of Inaction - Festering Wound and National Unity The extended state of emergency, lifted only in 2011, further stifled legal challenges to the PDA. Decades of simmering discontent have become a festering wound, threatening national unity. Ignoring these grievances has significant economic and social consequences. The oil and gas dispute stands as a major obstacle to national security, prosperity, and cohesion. A fractured Malaysia with a discontented Sabah and Sarawak is unlikely to achieve its full economic potential on the global stage. Beyond Money - A Fight for Self-Determination and Shared Prosperity Sabah and Sarawak's claims extend beyond mere monetary gain. They yearn for a fair deal, a chance to shape their own economic destinies. While increased oil royalty payouts are a necessity, the current model extracts vast wealth, leaving these states lagging behind. They deserve greater control over their resources, the power to decide how their wealth uplifts their people and fuels development. This is not a fight for greed; it's a fight for self-determination. They envision a future where they are active participants in shaping the national economic landscape, not just resource providers. Successful resource-sharing models exist in other federations. Canada's model grants significant autonomy to resource-rich provinces like Alberta over their oil and gas reserves, while ensuring a fair contribution to the national coffers. Similarly, the United Arab Emirates (UAE) employs a successful model where emirates rich in oil and gas contribute to a federal development fund. This fund is then used to support the development of less resource-rich emirates, fostering national unity and shared prosperity. These examples demonstrate that a balance can be achieved, allowing resource-rich regions to contribute to the national good while retaining a significant degree of control over their own resources. Implementing a similar framework in Malaysia, with revenue-sharing based on a transparent formula and provisions for regional development, could pave the way for a more equitable and sustainable future for all Malaysians. The Road to Reconciliation - A Call for Open Dialogue and Mutual Respect Open and honest dialogue involving all stakeholders is essential for forging a path towards reconciliation. This dialogue must extend beyond politicians to include economists, legal experts, and civil society representatives from Sabah and Sarawak. It must be a genuine attempt to understand the depth of discontent and explore solutions that address the root causes. Ignoring these grievances is a recipe for national fracture. A Sustainable Solution - Benefits for All Malaysians A sustainable solution requires a commitment from all parties involved. The federal government must acknowledge the legitimacy of Sabah and Sarawak's claims and demonstrate a willingness to revisit the existing agreements. This could involve: Establishing a revenue-sharing model that reflects a fairer distribution of oil and gas wealth, with a transparent formula that takes into account factors like production costs and depletion rates. Granting Sabah and Sarawak greater autonomy in managing their own oil and gas reserves, allowing them to decide on exploration, development, and production strategies. Investing in infrastructure development and social programs in Sabah and Sarawak to address historical neglect. This could include projects in transportation, education, healthcare, and rural development. Amending MA63 and related agreements to explicitly recognize Sabah and Sarawak's rights over their natural resources. By embracing a more equitable approach, Malaysia can unlock the full potential of Sabah and Sarawak. These resource-rich states can become not just contributors of wealth but active participants in shaping the national economic landscape. This will lead to a more prosperous and cohesive Malaysia, where all states feel they have a stake in the nation's success. Unity or Dissolution - The Choice Before Malaysia The fate of Sabah and Sarawak's oil and gas rights is a crossroads for Malaysia. The nation can choose the path of reconciliation and shared prosperity, or it can continue down the road of disenfranchisement and risk national dissolution. The time for empty promises and half-measures is over. Sabah and Sarawak deserve nothing less than genuine partnership, one that recognizes their rights and unlocks their full potential. Only then can Malaysia truly thrive as a united and prosperous nation. Call to Action The Malaysian government must take decisive steps to address the grievances of Sabah and Sarawak. A comprehensive review of existing agreements, coupled with open dialogue and a commitment to equitable resource sharing, is essential for achieving a lasting solution. By working together, all stakeholders can build a brighter future for Malaysia, one that benefits all its citizens. The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]
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