By DayakDaily Team
KUCHING, Jan 27: Sarawak’s rights over oil and gas (O&G) resources remain intact under state law and foundational agreements, despite claims that the Malaysia Agreement 1963 (MA63) contains no provisions on O&G ownership and regulation, said Sarawak United People’s Party (SUPP) Stakan branch chairman Dato Sim Kiang Chiok.
In a statement today, Sim stressed that viewing MA63 in isolation provides an incomplete legal picture. He said MA63 must be read together with the Inter-Governmental Committee (IGC) Report 1962 and the Sarawak Oil Mining Ordinance (OMO) 1958 to fully understand Sarawak’s constitutional rights.
“MA63 was not a standalone contract. It was predicated on the recommendations of the IGC Report,” he said. “Under Article VIII of MA63, the governments of Malaya, North Borneo, and Sarawak agreed to implement the assurances and recommendations contained in the IGC Report. This includes existing laws in Sarawak, which continue unless amended or repealed by the appropriate authority.”
The OMO 1958, a law enacted before Malaysia’s formation, grants Sarawak authority to regulate petroleum exploration and mining within the state. Sim highlighted that because the OMO has never been repealed by the Sarawak State Legislative Assembly, it remains valid under Article 162 of the Federal Constitution, which preserves existing pre-Malaysia Day laws.
He also said the federal Petroleum Development Act 1974 cannot override the OMO without Sarawak’s consent, as oil and gas are classified as state land matters under the Ninth Schedule of the Federal Constitution.
Sim further pointed out that Sarawak’s boundaries, including the continental shelf, were preserved under the Sarawak (Alteration of Boundaries) Order in Council 1954. Any federal law that alters these boundaries or strips the state of mineral rights without consent violates the spirit of MA63.
“Minister Azalina’s statement that MA63 says nothing about O&G ownership relies on a narrow reading of the document. The legal reality is that MA63 preserved Sarawak’s constitutional and legislative framework.
“Reading it alongside the IGC Report shows that Sarawak’s power over its resources, enshrined in the OMO 1958, was a condition of its participation in Malaysia, not a right that was signed away,” he said. — DayakDaily
