Batu Kitang rep: Is 95:5 ratio of sharing a win-win scenario for Sarawak? I think not

Dato Lo Khere Chiang
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By DayakDaily Team

KUCHING, Nov 7: A “win-win” scenario for Sarawak cannot be one where the State is left with a small fraction of the wealth generated from its own resources, says Batu Kitang assemblyman Datuk Lo Khere Chiang.

To him, Sarawakians believe in the principle of cooperation, but it must be one built on justice and fairness.  

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“Sarawak is not seeking to undermine the Federal government’s interests but is merely asking for what it rightfully deserves—a fair share of the wealth generated from its resources.

“We urge the Federal government to respect Sarawak’s historical and legal rights, to respect Sarawak’s right as the sole gas aggregator, and to ensure that the state receives a fair and equitable share of its oil and gas revenues, not 95:5. 

“That is surely not a win-win. Let us move forward, not just as partners in a federation, but as equal stakeholders in the future of Malaysia—as what our forefathers had envisaged for Sarawak,” said Lo.

He pointed out that Sarawak’s claims over its continental shelf and natural resources are grounded in law, in the Malaysia Agreement 1963 (MA63), and in the long history of the state’s rights.

Moreover, thanks to the efforts of Yang di-Pertua Negeri of Sarawak TYT Tun Dr Wan Junaidi Tuanku Jaafar, MA63 has now also been enshrined in the Federal constitution since 2021 via a unanimous vote in Parliament.

Sarawak’s continental shelf is 200 nautical miles from its coasts and this claim is grounded in Sarawak’s historical rights, as enshrined in the MA63, as well as in its own laws, such as the Oil and Mining Ordinance of 1958, which clearly recognises the State’s jurisdiction over its resources.

The situation has evolved since the emergency rule, which restricted the State’s powers during the 1969 proclamation.

However, the lifting of the emergency in 2011 revived Sarawak’s rights, reaffirming its control over its oil and gas resources, including those in the continental shelf, Lo explained.

“A ‘win-win’ solution cannot be achieved if Sarawak’s rights are undermined or ignored. It must be a solution where Sarawak receives a fair share of the wealth generated from its resources,” said Lo in a statement today.

Lo was responding to the recent comments of Deputy Prime Minister Fadillah Yusof who called for a ‘win-win’ resolution between the Federal and Sarawak governments concerning the State’s rights to resources on its continental shelf. 

“We stand with and support the firm stance taken by the Deputy Minister in the Premier of Sarawak’s Department (Law, MA63 and State-Federal Relations), Datuk Sharifah Hasidah Sayeed Aman Ghazali, who emphasised that the issues related to the continental shelf and Sarawak’s maritime boundaries are ‘not up for discussion’.

“If we are to seek a true ‘mutually beneficial’ solution, we need look no further than international examples like Guyana, which has successfully negotiated a fair and transparent partnership with ExxonMobil for the development of its offshore oil resources.

“In their agreement, Guyana receives 50 per cent of the revenues generated from its oil fields, a fair and equitable share that reflects the value of its resources and the partnership between the state and the company.

“By contrast, Sarawak has received just five per cent royalty from its oil and gas resources for the last fifty years while Petronas retains the lion’s share.

“It was only in the last four years or so that we managed to get a further five per cent as sales tax on petroleum products through a hard fought court battle. How can this disparity be justified?” Lo questioned. — DayakDaily

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