KUCHING, Nov 7: Batu Kitang assemblyman Datuk Lo Khere Chiang has voiced strong concerns over the current 95:5 revenue-sharing ratio of Sarawak’s oil and gas revenues, calling it far from a “win-win” solution for the State. Lo argued that such a small share for Sarawak does not align with the principles of fairness and justice that Sarawakians value.
“Sarawak believes in cooperation, but not at the cost of being left with just a fraction of the wealth generated from its own resources,” Lo stated. He emphasised that Sarawak is not challenging the Federal government’s interests but is asking for a fairer share of the revenue derived from its resources.
Sarawak’s Historical Rights and the Malaysia Agreement 1963 (MA63)
Lo reminded that Sarawak’s rights to its natural resources are deeply rooted in history and law, citing the Malaysia Agreement 1963 (MA63). The MA63, which played a key role in Sarawak joining Malaysia, acknowledges Sarawak’s ownership over its resources. Furthermore, since 2021, MA63 has been enshrined in the Federal Constitution, solidifying the state’s rights.
“The rights we are fighting for are not new; they’ve been part of Sarawak’s legal framework for decades,” he added, pointing out that Sarawak’s jurisdiction over its continental shelf extends 200 nautical miles from its coastline. This claim is supported by the Oil and Mining Ordinance of 1958, which highlights the State’s authority over its resources.
A Call for a Fairer Revenue Sharing Model
In response to recent remarks by Deputy Prime Minister Fadillah Yusof, who called for a “win-win” solution, Lo argued that true equity cannot be achieved if Sarawak continues to receive only a minimal portion of its resource revenue. He compared Sarawak’s situation to that of Guyana, which receives a 50% share from its offshore oil resources in partnership with ExxonMobil, exemplifying a fairer and more balanced model.
“Over the past 50 years, Sarawak has only received a 5% royalty from its oil and gas resources while Petronas retains the majority. This disparity is difficult to justify, especially considering that Sarawak has managed to secure an additional 5% sales tax through court battles only in recent years,” Lo noted.
In support of Sarawak’s rights, Lo reiterated the stance of Deputy Minister in the Premier of Sarawak’s Department, Datuk Sharifah Hasidah Sayeed Aman Ghazali, who firmly stated that the State’s maritime boundaries and continental shelf rights are “not up for discussion.”
The Road to an Equal Partnership
Lo urged for a solution that reflects the true value of Sarawak’s resources, allowing it to progress as an equal stakeholder in Malaysia’s future. “Our forefathers envisaged a federation of equals. It’s time we honour that vision with a fair share for Sarawak,” he concluded.