KUALA LUMPUR – The authority to supervise decisions and activities related to gas sourced from Sabah will be devolved to the state, said Prime Minister Datuk Seri Anwar Ibrahim, in view of the ongoing effort to restore Malaysia Agreement 1963 (MA63).
He said the decision on the matter was among those concluded during the cabinet meeting held today, adding that more such restorations of rights will be announced in early January.
“This devolution of power was decided at the federal level, as it has happened in Sarawak (before). The move will give power to Sabah,” he said at a press conference after the meeting.
“Although there will still be negotiations, the power (over gas resources) will ultimately be given to the Sabah government.
“Still, its implementation will begin once it receives the royal assent,” he added.
Anwar noted that the power to determine gas prices under the new deal was until now determined at the federal level.
However, with the devolution of power, Sabah will have the power to do this, just like Sarawak, he added.
He also revealed that within one month, or even some time in early January next year, other MA63 issues will be resolved.
The issues are being tackled expeditiously, especially with the appointment of Gabungan Parti Sarawak’s Datuk Seri Fadillah Yusof as deputy prime minister.
Fadillah, who is also plantation industries and commodities minister, has been assigned to lead the new government’s efforts to resolve MA63 matters.
However, Anwar stressed that some MA63 issues will remain unresolved for a longer period. These include legal matters that would be eventually resolved when Parliament reconvenes.
Sabah is Malaysia’s third largest natural gas producer with 13% of the nation’s output, after Sarawak (61%), and Peninsular Malaysia 26%, according to 2019 statistics.
National oil and gas company Petronas is vested with full ownership and exclusive rights on oil and gas resources under the Petroleum Development Act 1974.
This means the devolution of such powers would likely see an alteration to the agreement signed between Sabah and the company in 1976.
The agreement was seen to be in conflict with MA63 as matters on land and subsoil under seabeds come under the state. – The Vibes, December 21, 2022
