Business community backs Sarawak’s legal push for clarity over petroleum rights

Sarawak Chamber of Commerce and Industry (SCCI) logo.
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By DayakDaily Team

KUCHING, Feb 27: By pursuing an authoritative determination through the Federal Court, the Sarawak government is demonstrating a responsible and orderly approach to resolving long-standing questions over legislative authority and resource jurisdiction, the Sarawak Chamber of Commerce and Industry (SCCI) said today as it formally affirmed its strong support for the State’s petition.

The legal move seeks vital judicial clarification regarding the constitutional applicability of the Petroleum Development Act 1974 (PDA74), the Continental Shelf Act 1966 (CSA66), and the Petroleum Mining Act 1966 (PMA66) within Sarawak.

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Describing the petition as a matter of paramount constitutional and economic significance, SCCI said a definitive ruling by the Federal Court would provide much-needed clarity on the scope and extent of legislative powers affecting the State’s oil and gas resources.

“As a cornerstone of Sarawak’s economic ecosystem, the oil and gas sector remains a strategic driver of investment confidence, industrial growth, and sustainable development,” the Chamber said in a statement.

SCCI stressed that clear legal delineation is essential to provide assurance for long-term capital commitments, particularly in capital-intensive sectors such as upstream exploration, downstream processing, and supporting services.

It noted that regulatory certainty directly influences supply chains, employment generation, and the expansion of local enterprises participating in the oil and gas value chain.

“A definitive judicial interpretation will foster a more transparent framework for managing Sarawak’s natural resources, strengthening governance and supporting sustainable development goals,” it added.

The Chamber also underscored the importance of continued and constructive engagement between State and federal authorities, saying collaboration remains vital to ensure Sarawak’s economic interests are strengthened without compromising the stability of the national investment environment.

“As a leading advocate for the business community, SCCI remains dedicated to initiatives that promote clarity, confidence, and sustainable growth for the benefit of Sarawak and its people,” it said. — DayakDaily

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