By Antonia Chiam
“This is because Sarawak intends to regulate the ports in Sarawak more effectively through the State’s own law which is the ordinance enacted before the establishment of Malaysia—Port Authority Ordinance 1961. The power to regulate State ports is also enshrined in the State Supplementary List (List IIA) under the Ninth Schedule of the Federal Constitution.” Abang Johari (July 22, 2024)
IN a significant move to assert its autonomy and enhance economic development, the Sarawak government, under the leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg set to take over the operations of Bintulu Port from the Federal government. This transition not only transforms Bintulu Port into a State-managed facility but also ensure that it maintains its crucial role as Malaysia’s top liquefied natural gas (LNG) port.
This decision marks a crucial turning point in Sarawak’s broader strategy to boost its maritime infrastructure, support local industries, and position the State as a key player in global trade. Currently, Petroliam Nasional Berhad (PETRONAS) is Bintulu Port’s largest shareholder with a 28.52 per cent stake, followed by Sarawak with 26.67 per cent, Equisar Assets Sdn Bhd with 15.04 per cent, and KWAP with 9.17 per cent.
Rectify Historical Oversight
It was a long and persistent journey for Sarawak. The move to take back Bintulu Port was initially raised in September 2019 with a study on Sarawak’s rights under the Federal Constitution led by then Minister of Infrastructure and Port Development, the late Tan Sri Dr James Jemut Masing, before the Covid-19 pandemic. In January 2023, Abang Johari officially announced Sarawak’s intent to regain control of the port based on the fact that Bintulu Port belongs to the State, as the Port Authorities Ordinance 1961 was never repealed. The plan aligns with Sarawak’s broader strategy to optimise regional ports under a Central Port Authority governed by Sarawak law.
To fully understand the significance of this initiative, it is essential to reflect on the historical context surrounding Bintulu Port’s Federal status. In 1978, the Malaysian Parliament passed the Federal Ports Act (Act 217) which included the declaration of an area in the Bintulu District as a federal port. This led to the establishment of the Bintulu Port Authority (BPA) in 1981. However, the passing of Act 217 did not follow the mandatory consultation with the Sarawak Legislature, as stipulated by Article 76(1)(c) of the Federal Constitution. This bypassing of State consent remains a point of contention for Sarawakians, as it resulted in the port being placed under federal control without the State’s input.
A comprehensive report and proposal for the transfer of Bintulu Port were completed in August 2023 and submitted to the Malaysia Agreement 1963 (MA63) technical committee. The Federal government had, in principle, agreed to the transfer in July 2023. In March 2024, the MoU between the Transport Ministry and the Infrastructure and Port Development Ministry was formalised in Putrajaya, establishing three committees—Special, Working, and Technical to ensure the port’s status change is completed by December 2024.
On July 17, 2024, Sarawak made history as the Dewan Rakyat approved the Bill to repeal the Bintulu Port Authority Act 1981 and the Declaration of an Area in the Bintulu District to be a Federal port without amendments through the approval of the Federal Port (Repeal) Bill 2024 and the Bintulu Port Authority (Dissolution) Bill 2024. The Bill aimed to transfer the powers, rights, duties, liabilities, and obligations of the Bintulu Port Authority to the Sarawak government. This follows a policy shift to change Bintulu Port’s status from a Federal port to a State port, in line with MA63.
Subsequently on March 22, 2024, a Memorandum of Understanding (MoU) was signed between the Federal and Sarawak governments to formalise the transition of Bintulu Port from federal to Sarawak. As of April 2025, the Sarawak government is in the process of assuming full control over Bintulu Port’s operations. Following the takeover, the Sarawak government rectified this historical oversight by reclaiming control of Bintulu Port and integrating it into a larger, State-driven port management strategy.
Towards a Competitive Port Network
Abang Johari’s vision for Sarawak’s ports is rooted in the State’s desire for greater control over its economic and infrastructural assets. Prior to the taking over, Sarawak operates six State ports: Kuching, Rajang, Tanjong Manis, Samalaju, and Miri under the Port Authorities Ordinance 1961, while Bintulu Port remains under federal jurisdiction, managed by the Ministry of Transport, until the official handing over to the State. The shift towards a state-operated Bintulu Port is a central piece of Sarawak’s broader port development strategy, designed to meet the State’s evolving industrial and economic needs.
By asserting control over this vital port, the Sarawak government aims to build a unified, efficient, and competitive port network that supports the State’s long-term growth objectives while advancing its broader mission to manage resources and infrastructure in ways that deliver direct benefits to its people. Sarawak government aims to build a unified, efficient, and competitive port network that supports the State’s long-term growth objectives while advancing its broader mission to manage resources and infrastructure in ways that deliver direct benefits to its people.
By incorporating Bintulu Port into the State’s port development framework, Sarawak will have the ability to create a masterplan that ensures the long-term viability and competitiveness of all its ports. Such a strategy would not only enhance Sarawak’s shipping connectivity with global transportation hubs but also help create a well-integrated and efficient port network that benefits local industries and businesses.
Borneo Oil and Gas Supply Base
Abang Johari’s intention was clearly reflected in his effort to rename a critical component part of Bintulu Port—Bintulu Port Supply Base which serves as a dedicated facility for the oil and gas (O&G) industry for storage, cargo handling, bunkering and vessel support to Borneo Oil and Gas (BOG) Supply Base on September 2024.
“Bintulu Port is one of the ways to improve Sarawak’s economy not only from a supply base, but also to import materials and export products from Sarawak.
“Coincidentally Sarawak is located on Borneo Island, and Borneo Island can become a star that shines bright if we have a proper economy,” said Abang Johari.
BOG Supply Base has been certified as a green port, which Abang Johari sees as a significant achievement. This certification is expected to boost Sarawak’s economy, not only through BOG Supply Base itself but also by facilitating the import of materials and export of Sarawak products. With the transfer of ownership of BOG Supply Base to Sarawak in progress, managing the facility will be more streamlined, as it will soon fall under the full ownership of Sarawak, with no approval needed from the Federal government to conduct operations relating to Bintulu Port.
Currently occupying 50 acres, the BOG Supply Base has a proposed expansion to 300 acres to serve as a future supply base, marking a new era for Sarawak as it expands facilities to meet global demands. The new BOG Supply Base will enhance Bintulu Port’s status as a leading maritime hub, supporting Sarawak’s goal of becoming a developed state by 2030.
Formation of Central Port Authority
One of the key components of the new port strategy is the formation of a Central Port Authority, which would be governed by State law. This entity would oversee and coordinate the management, operation, planning, and development of all ports in Sarawak, including Bintulu Port. The establishment of this authority aims to harmonise port tariffs and dues across the State, ensuring that no single port is disadvantaged by outdated or unequal charges.
Currently, Bintulu Port’s tariffs have not been revised since 1993, which has created an imbalance in the competitiveness of Sarawak’s ports. Bintulu Port’s lower tariffs, in particular, have caused a diversion of maritime traffic away from other State ports. This situation is in direct contradiction to the recommendations of the Inter-Governmental Committee (IGC), which advocates for fair and non-discriminatory port dues across Sarawak’s ports. The Central Port Authority would resolve these disparities, promoting equitable growth and preventing any one port from undercutting others due to outdated tariff structures. Such a move would boost the efficiency and profitability of Sarawak’s entire port network, while also improving the State’s appeal to international trade and logistics companies.
In addition to these structural changes, Abang Johari has emphasised the importance of continued collaboration with PETRONAS, a key stakeholder in Bintulu Port. PETRONAS, Malaysia’s national O&G company, has a long-standing relationship with the port, and the Sarawak government is keen to maintain this partnership as the State moves forward with its plans to develop the port.
With continued cooperation, Abang Johari believed Bintulu Port could be transformed into a significant transportation hub in the Asia Pacific region. This transformation would not only enhance Sarawak’s maritime infrastructure but also create new business opportunities, improve regional trade, and foster sustainable development in the State.
Positive Growth in Revenue
Being the largest LNG export terminal in East Asia and biggest container terminal in East Malaysia, the Bintulu Port’s main export outlet of palm oil products for Sarawak accounted to 95 per cent of the State’s export at about 4 million tonnes per annum. Its high export had ranked third at around 50 million tonnes per annum. Coupled with the Samalaju Port, the two are estimated to handle nearly half of RM1 trillion per annum worth of products in the region.
It is not surprising that in the unaudited financial results for the fourth quarter and the year ended December 31, 2024, the Group had recorded operating revenue of RM219.96 million for Q4 2024, an increase of RM5.12 million or 2.38 per cent compared to RM214.84 million in Q4 2023. This growth was mainly due to higher volumes of LNG and bulk fertiliser cargoes handled, along with more vessel calls.
For the year 2024, Bintulu Port Holdings reported an 8.19 per cent increase in operating revenue, rising from RM765.58 million in 2023 to RM828.30 million. This growth was driven by higher volumes of LNG, bulk fertiliser, supply base activities, and Samalaju cargoes. After-tax profit also rose significantly by 22.73 per cent, from RM125.06 million in 2023 to RM153.48 million in 2024.
Beyond Logistics and Economics
Abang Johari’s initiative to take control of Bintulu Port is more than just a logistical or economic decision—it is a clear statement of Sarawak’s ambition to shape its future by transforming it into the region’s prime hub. It is in his plan to link Bintulu Port to Nusantara via railway and to build a specialised terminal to cater for emerging industries especially the hydrogen industry with the goal to turn it into an international logistic and bunkering hub for vessels en route between India and China, thereby maximising its potential.
By transitioning Bintulu Port to State governance and establishing a Central Port Authority, the Sarawak government aims to create an efficient, competitive, and integrated port network that will better serve local industries and businesses while boosting the State’s appeal to international trade partners.
With key stakeholders on board, Sarawak is well-positioned to develop Bintulu Port into a regional transportation and logistics hub, further cementing the State’s role in the Asia Pacific’s maritime and economic landscape. This move represents a significant step forward in Sarawak’s journey towards greater autonomy, economic prosperity, and global influence, with the potential to reshape the State’s maritime and industrial future for years to come.
The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd.
