By DayakDaily Team
KUCHING, Feb 24: Sarawak’s present petition in the Federal Court challenging the constitutional applicability of certain federal oil and gas laws involving Petroliam Nasional Berhad (PETRONAS) is not an act of confrontation, but one of constitutional defence.
Sarawak United Peoples’ Party (SUPP) Central Women Section stressed that the State’s rights are not political concessions, but are firmly entrenched in the Federal Constitution and the Malaysia Agreement 1963 (MA63), which form the very foundation of Malaysia.
In a statement today, the section said it stands firmly and unequivocally behind the Sarawak government’s move to file a petition in the Federal Court.
“The move is both justified and necessary to obtain authoritative constitutional clarification from the apex court on matters affecting Sarawak’s regulatory and fiscal authority over its petroleum resources,” it said.
The petition seeks a definitive determination on the constitutional validity and continued applicability in Sarawak of the Petroleum Development Act 1974 (PDA 1974), the Continental Shelf Act 1966 (CSA66), and the Petroleum Mining Act 1966 (PMA66).
The statement noted that since 2018, PETRONAS has initiated a series of legal actions involving Sarawak’s regulatory and fiscal powers.
These include a 2018 Federal Court application seeking declarations on the exclusivity of the PDA 1974; a 2019–2020 judicial review challenging Sarawak’s 5 per cent State Sales Tax (SST) on petroleum products; 2025 High Court proceedings contesting Sarawak’s Distribution of Gas Ordinance 2016 (DGO) licensing regime; and a January 2026 Federal Court motion seeking clarification of the regulatory framework governing its operations in Sarawak.
In June 2018, PETRONAS attempted to obtain declarations from the Federal Court asserting that the PDA 1974 governs the petroleum industry throughout Malaysia, that the national oil company is the exclusive owner of petroleum resources, and that it is the sole upstream regulator, including in Sarawak. However, the Federal Court dismissed the application for leave on jurisdictional grounds.
In 2020, the Kuching High Court upheld Sarawak’s constitutional authority to impose its 5 per cent SST, dismissing PETRONAS’ judicial review application.
Despite these outcomes, the SUPP Central Women Section noted that further legal challenges have continued.
The section also expressed full confidence in the leadership of Deputy Minister in the Sarawak Premier’s Office Datuk Sharifah Hasidah Sayeed Aman Ghazali, who is spearheading Sarawak’s legal response.
“At this critical juncture, unity among Sarawakians is paramount. We call upon all Sarawakians, regardless of political affiliation, to stand together in safeguarding our State’s natural resources, constitutional position, and future generations’ interests,” the statement reminded.
Reaffirming its stand, the section stressed that Sarawak’s rights must be respected and its constitutional position upheld.
The Sarawak government filed the petition on Monday (Feb 23) to challenge the applicability of key federal laws on oil and gas (O&G) in the State, following PETRONAS’ move to question the validity of Sarawak’s petroleum laws.
Sharifah Hasidah emphasised that under the MA63 and the constitutional instruments annexed thereto, sovereign rights to the petroleum resources in the seabed within Sarawak’s boundaries, were vested on Malaysia Day by the British Government in Sarawak and not in the Federation or federal government.
She cited Item 2(c) of the Ninth Schedule of the Federal Constitution, which vests legislative authority in the Dewan Undangan Negeri to regulate the exercise of these petroleum rights through the issuance of mining leases, certificates, and prospecting licenses. — DayakDaily
