By DayakDaily Team
KUCHING, Aug 7: : Kota Sentosa assemblyman Wilfred Yap has criticised the federal government’s overdependence on Petroliam Nasional Berhad (PETRONAS) as a fiscal lifeline, asserting that Sarawak’s pursuit of a fairer share of oil and gas revenues must not be framed as a threat to Malaysia’s financial stability.
From 1976 to 2020, Yap pointed out that PETRONAS contributed over RM1.2 trillion to the federal coffers and yet Sarawak, being one of the biggest oil and gas contributors, received only a five per cent royalty in return.
“To suggest that correcting this imbalance threatens Malaysia’s finances is to ignore the core issue: the federal government’s over reliance on PETRONAS as a fiscal lifeline in distribution of resources, and a long-term plan for national productivity,” he said in a statement today.
Yap emphasised that Malaysia must transition away from centralised model of dependence and shift towards a more diversified and resilient economy, one built on equitable development, enhance tax efficiency, and high-value sectors across the country, rather than “extractive dependency on Sarawak’s oil and gas”.
“A resilient economy is built on diversification — not on the back of one company, one region, or one commodity. The future lies in inclusive economic development, sound fiscal management, and transparent governance — not in questioning the constitutional rights of Sarawak,” he added.
Yap was responding to the recent remarks by former Economy Minister Rafizi Ramli, who suggested that increasing Sarawak’s share of oil and gas revenues could negatively affect Malaysia’s sovereign credit rating and lead to higher interest on national debt.
“I strongly disagree with the implication that honouring Sarawak’s rightful entitlements is somehow harmful to national financial stability. This narrative is both misleading and unfair and it risks turning Sarawak into a scapegoat for deeper federal inefficiencies,” he said.
Yap pointed out that Sarawak’s claims are constitutionally and legally grounded in the Malaysia Agreement 1963 (MA63), the Inter-Governmental Committee (IGC) Report 1962, and the Federal Constitution — all of which recognise the State’s autonomy over its land and natural resources.
He stressed that Sarawak has always operated within the law, citing the state’s Oil Mining Ordinance (OMO) 1958 and Distribution of Gas Ordinance (DGO) 2016, which empower it to regulate its own natural resources.
The operations of Petroleum Sarawak Berhad (PETROS), the State-owned oil and gas company, are professional and legally compliant, he added.
“This is not rebellion — it is responsible governance,” Yap said, warning that portraying Sarawak’s constitutional claims as a fiscal threat sends the wrong message not only to Sarawakians, but to the nation and global investors.
“Investor confidence is built on legal certainty, policy clarity, and institutional integrity,” he said.
He argued that giving Sarawak greater fiscal space would not harm national unity but enhance it.
“When Sarawak is empowered to invest in infrastructure, education, and industry, the benefits ripple across the country. It will strengthen Malaysia’s internal economy, uplift rural communities and contribute to national Gross Domestic Product (GDP),” he said.
He called for a decentralised development model that empowers all states and fosters national unity through shared prosperity.
“The Gabungan Parti Sarawak (GPS)-led Sarawak government does not seek confrontation — only justice under the Constitution and MA63. It is unjust for Sarawak to continually be told to accept less in the name of ‘national interest’ when that ‘interest’ is skewed by federal inefficiency and poor financial planning,” he stressed.
Calling for a “new budget philosophy”, Yap urged Putrajaya to stop leaning on Sarawak’s oil and gas as a financial crutch and instead build an inclusive economic framework that empowers all states.
“Malaysia must learn to stand on its own two feet. The time has come for Putrajaya to embrace a new budget philosophy: one that empowers all states, especially resource-contributing ones like Sarawak, and reduces unhealthy dependence on a single revenue source. Let us move forward with mutual respect, equity, and sound fiscal policy,” he concluded. — DayakDaily
