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Dr M says Sarawak's push for oil control can harm nation. Better than having the unscrupulous Semenanjong policians squander away the nation's wealth. - Facebook image
Petronas Twin Towers built with Sarawak and Sabah’s contributions
KUALA LUMPUR, May 12, 2025: Sarawak is today fighting all out to regain what belongs to the country and Sarawakians - oil and gas.
Because of MA63, the federal government or Semenanjong politicians are at the losing end because Sarawakinas are rising or have arisen and cannot be that easily bullied.
Sarawakians are today wiser and they are also aware of their legal rights.
What about Sabah?
Still very uncertain and bullied because of the presence of Semenanjong-loving Sabahans.
The blame on the sad state of East Malaysians is on no other than the racist Dr Mahathir Mohamad (Dr M) who governed Malaysia for more than two decades.
This is what Prof Dr James Chin posted on Facebook on Petronas and East Malaysia:
James Chin
I’ve said it many times—Mahathir believed in centralising power. During his tenure as Prime Minister, he treated Sabah and Sarawak poorly, viewing them merely as fixed deposits for Barisan Nasional. He saw Sabahans and Sarawakians as passive and loyal supporters, which allowed him to act with little accountability and no regard for Borneo. Through Project IC, he effectively took political power from native Sabahans and turned Sabah into a PTI state.
When he returned to power in 2018, he showed little genuine support for the Malaysia Agreement 1963 (MA63). His administration offered only minor administrative adjustments and devolved limited authority back to Kota Kinabalu and Kuching. He was unwilling to even discuss anything to do with O/G.
I have a simple question: Mahathir claims the British took all the money and didn’t build the Petronas Twin Towers— but if he truly cared about Sabah and Sarawak, why weren’t the towers built in Kuching/KK? Why wasn’t Petronas headquartered in Kota Kinabalu or Kuching? After all, one tower was funded by Sarawak’s oil and gas, and the other by Sabah’s.
Am I wrong to say that for over 50 years, Petronas and the federal government have treated Sabah and Sarawak’s oil and gas as a piggybank? How much longer are we expected to wait? Another 50 years—until the resources run out?
Mahathir destroyed ethnic relations in Malaya and introduced political Islam into Malaysia. He destroyed Sabah by Project IC. Just a few days ago, he pushed for Malay supremacy again and reminded Malay youths not to treat Malaysian Chinese and Indians as equal citizens.
Malaysians must not listen to this man. He believes that Sabahans and Sarawakians must remain subservient to Malaya. This is wrong on every level.
#MA63 #Sabah #Sarawak #Petronas
From Facebook:
According to this Senator, Petronas took out RM1Trillion or RM1,000,000,000,000 from Sarawak O/G. Well, I did tell you that Borneo paid for the Twin Towers- one tower paid by Sarawak, the other tower paid by Sabah. Do Malayans understand the anger?
No News Is Bad News reproduces below a Sarawak senator taking Dr M to task over oil rights and some background on the Petronas-Petros dispute:
Sarawak senator takes Dr M to task over oil rights
Robert Lau says a letter from the then chief minister surrendering Sarawak’s oil and gas rights in 1976 was not presented to Parliament. Robert Lau, a senator from Sarawak, took issue with remarks by Dr Mahathir Mohamad about the state’s push for autonomy over oil and gas. (Bernama pic)
PETALING JAYA: A senator has taken a swipe at Dr Mahathir Mohamad for saying that Sarawak’s quest for greater autonomy and control over its oil and gas resources must go through Parliament rather than backroom negotiations.
Robert Lau of the Sarawak United Peoples’ Party questioned whether Mahathir would have held the same stand when the state handed over its oil and gas rights in 1976.
“Did this principle apply when then-Sarawak chief minister Abdul Rahman Yakub was pressured into signing a one-page letter in June 1976, effectively surrendering the state’s oil and gas rights to Petronas?” Lau said, according to The Borneo Post.
He said the finance minister at the time, Tengku Razaleigh Hamzah, was tasked with securing the signatures from the leaders of Sarawak and Sabah, offering a mere 5% royalty in return.
“This letter was never tabled in Parliament, and neither was it presented to the Sarawak legislative assembly or even approved by the Sarawak Cabinet,” Lau said.
Lau asked whether Mahathir would agree that the letter was illegitimate since it did not go through Parliament.
He also dismissed the former prime minister’s argument that Sarawak had gained substantially from being a part of Malaysia, and that it used to be a “very poor” state after “the British took all their money”.
Lau said the British colonial administration extracted wealth from Malaya, as Sarawak was not made a British colony until 1946. The state’s oil and gas resources had yet to be meaningfully developed at that point.
“The hundreds of billions (of ringgit) taken, and still being taken, out of Sarawak have not benefitted the British — they have overwhelmingly benefitted Malaya,” Lau added.
Mahathir had said in an interview with FMT that national policies in a federation must take precedence over state-specific demands. He also said Petronas must not be undermined by political pressure, stating his belief that there were other solutions that could also benefit Sarawak.
The Sarawak government has pushed for control over its oil and gas reserves, relying on pre-independence laws over the Petroleum Development Act 1974 which grants Petronas the exclusive rights to exploit oil and gas reserves.
Tensions have been escalating between Petronas and Sarawak-owned Petros in a licensing dispute, after the Petronas exploration subsidiary Petronas Carigali was accused by Sarawak of operating its Miri crude oil terminal without a state licence.
On Friday, the Prime Minister’s Office said Prime Minister Anwar Ibrahim and Sarawak premier Abang Johari Openg had agreed to finalise key principles to support negotiations between Petronas and Petros.
Dialogue, not dispute: Putrajaya and Sarawak to resolve all outstanding Petronas and Petros issues, says PMO
Prime Minister Datuk Seri Anwar Ibrahim with Sarawak Premier Tan Sri Abang Johari Tun Openg at Putrajaya. — Picture via Facebook/Anwar Ibrahim
Saturday, 10 May 2025 9:10 AM MYT
KUALA LUMPUR, May 10 — Putrajaya and the Sarawak state government have reached an agreement to settle all issues related to Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) through dialogue.
The Prime Minister’s Office (PMO) said the agreement was reached during a meeting, chaired by Prime Minister Datuk Seri Anwar Ibrahim, with Sarawak Premier Tan Sri Abang Johari Tun Openg, which was also attended by Petronas’ and Petros’ top leadership at the Perdana Putra complex in Putrajaya.
“The Prime Minister and Sarawak Premier have agreed to settle in the near future the basic principles, as previously agreed, to facilitate the discussions between Petronas and Petros,” it said in a statement yesterday.
The PMO said the meeting took place amid a cordial and harmonious atmosphere based on the spirit of unity.
The move to reach the agreement, it said, is vital to ensure the great potential identified through the collaboration between Petronas and Petros can be explored thoroughly and implemented effectively.
“This includes expediting the commercial supply of energy to Asean member states,” it said.
According to the statement, the Prime Minister and the Sarawak Premier have agreed to resolve all issues that arose prior to this through dialogue. — Bernama
PM, Sarawak premier to announce decision on Petros-Petronas issue ‘when the time is right’, says state minister
Julaihi (3rd left) receives a souvenir from the Miri Land and Survey Department while (from left) State Transport Minister Datuk Seri Lee Kim Shin and Regional Corridor Development Authority (Recoda) CEO Datuk Ismawi Ismunie look on. — The Borneo Post pic
Saturday, 10 May 2025 5:25 PM MYT
MIRI, May 10 — An official statement on the outcome of the Petros-Petronas discussions will be issued by both Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Openg when the time is right, said Datuk Seri Julaihi Narawi.
The state utility and telecommunications minister expressed confidence that the two leaders will reach a mutual agreement on the matter, including issues related to the Distribution of Gas Ordinance (DGO) 2016.
“They will come to an agreement and resolve issues concerning Petros and Petronas.
“Let the prime minister and premier decide — they have already met. I believe they will issue a joint statement. I believe that.
“I have no further comment until the time comes (for them to make the announcement),” he told reporters here today after representing the Premier at the 2025 Miri Madani Service Programme at the Miri Indoor Stadium today.
When asked about a leaked letter from his ministry regarding the DGO 2016 that has gone viral, Julaihi declined to comment directly.
However, he reaffirmed that under the DGO 2016, Petroleum Sarawak Berhad (Petros) is the officially appointed sole gas aggregator in Sarawak.
“As for the rest, I do not wish to comment further. Let this issue be resolved by the Prime Minister and the Premier,” he said.
Earlier during the event, Julaihi clarified that the DGO 2016 pertains strictly to gas distribution and not oil.
“We are aware that the letter in question, which was circulated by the media, has turned this into a heated national issue.
“In truth, I cannot say much. The letter was issued by the Ministry (of Utility and Telecommunications) and used polite language and there was no intention of using harsh words,” he said.
Julaihi reiterated that both the prime minister and premier had already met to seek a consensus on the Petros-Petronas issue, which he believes includes the matter of gas distribution.
Media reports have claimed that the Sarawak government issued a letter of demand to Petronas Carigali Sdn Bhd (PCSB) over alleged non-compliance with Section 7(e) of the DGO 2016, specifically concerning the operation of a PCSB-owned facility at the Miri Crude Oil Terminal (MCOT). — The Borneo Post
Petronas fails to get stay over Sarawak’s suit to recover RM1.3b sales tax
5 years ago
Judicial Commissioner Christopher Chin sets March 13 for the case to be heard.
State legal counsel JC Fong (left) at the High Court in Kuching today.
KUCHING: The High Court here today rejected Petronas’ application to stay proceedings against the Sarawak government’s lawsuit to recover unpaid state sales tax from the national oil corporation.
Judicial Commissioner Christopher Chin also set March 13 to hear the case.
Petronas had applied for a stay of proceedings pending the outcome of its appeal against Chin’s decision not to recuse himself from hearing the case.
It claimed Chin would decide the case to favour the prime minister as his tenure as a judicial commissioner was temporary and subject to confirmation by the prime minister, who is also the person with ultimate control over Petronas.
However, Chin said to stay the proceedings would be a failing on his part to discharge his sworn duty as a judicial commissioner and an endorsement of a flaw in the system of confirmation of judicial commissioners.
He said it would also represent a fault in the constitutional provisions relating to the judicial institution.
“As my earlier decision not to recuse is based substantially on the protection of the institution of the judiciary, it must necessarily follow that I now refuse this stay application,” he said.
On Jan 1 last year, Sarawak imposed a 5% sales tax on Petronas’ petroleum products under the state’s Sales Tax Ordinance 1998.
However, Petronas failed to pay the tax amounting to RM1.3 billion, resulting in the state government’s legal action against it.
https://dayakdaily.com/kuching-high-court-orders-petronas-to-settle-rm1-3-bln-owed-to-sarawak-govt/#google_vignette (Kuching High Court orders Petronas to settle RM1.3 bln owed to Sarawak govt)
Petronas finalising agreement with Sarawak on sales tax with view to withdraw appeal
By Hafiz Yatim / theedgemarkets.com
23 Jun 2020, 09:55 am
PUTRAJAYA (June 23): Petroliam Nasional Bhd (Petronas) has informed the Court of Appeal that it is finalising an agreement with the Sarawak government and the state's Comptroller of State Sales Tax with regard to the RM2 billion in sales tax sought by the state for last year.
This was informed to the appellate court via a letter yesterday.
As such, Petronas counsel Datuk Malik Imtiaz Sarwar informed the three-member bench that it sought a short adjournment of its appeal. The matter was fixed for mention today.
“This follows reasons as stated in the letter in paragraphs two and three,” he said, citing the letter to the court.
Sarawak counsel Datuk Seri JC Fong informed the court that the state was with the view of an undertaking of a withdrawal of the appeal (for judicial review).
Justice Datuk Seri Kamaludin Md Said then fixed Aug 3 for the next date.
The other judges on the panel were Justice P Ravinthran and Justice Datuk Abu Bakar Jais.
Ravinthran is a judge who hails from East Malaysia in the proceedings, following a requirement that appeals in the Court of Appeal and the Federal Court should have at least one judge from Sabah or Sarawak.
After the proceedings, Fong confirmed with reporters that Petronas is withdrawing the appeal for judicial review.
Malik told reporters that the national oil conglomerate is finalising the agreement and given the undertaking to withdraw the appeal before Aug 3. “This is pending the settlement being finalised and the internal processes [within Petronas] being fulfilled,” he told reporters.
He emphasised this case with regard to Petronas' judicial review while Sarawak's civil suit against Petronas has been fixed for case management on July 3 in Kuching.
Petronas is appealing before the appellate court with regard to the Kuching High Court decision on March 13, which dismissed its judicial review application to challenge the sales tax imposed by Sarawak.
Kuching High Court Justice Azhahari Kamal Ramli dismissed Petronas' judicial review on March 13, which eventually meant Sarawak was entitled to collect the sales tax under the Federal Constitution for the two states which joined Malaysia in 1963.
Petronas is seeking orders to quash notices of assessment for an amount of more than RM1.3 billion issued by Sarawak's Comptroller of State Sales Tax, and declarations that the Sarawak government is not entitled to impose state sales tax (SST) on petroleum products.
The company is seeking, among others, a declaration of certain sections of the notices as ultra vires to the Federal Constitution and null and void, and also an order of certiorari that the notices dated Aug 28, 2019, Oct 7, 2019, and Nov 13, 2019 issued to Petronas to be quashed.
Sarawak imposed a 5% sales tax on petroleum products on Jan 1 last year under the state’s Sales Tax Ordinance 2018.
Following the High Court decision, Petronas filed the appeal which was scheduled to be heard today.
However, on May 8, the Sarawak state government and Petronas issued a joint statement that the national oil company had agreed to pay in full the petroleum product sales tax imposed by Sarawak for the year 2019, which was in excess of RM2 billion, or 5% of the products’ sales value.
The joint statement stated that Petronas would retract its appeal against the Kuching High Court decision that sought a declaration that the SST imposed by the Sarawak government is null and void.
In return, the Sarawak state government would drop all claims in its civil case against Petronas for the payment of petroleum product sales tax.
The parties also agreed that future petroleum product sales tax would be lower and staggered based on future negotiations under the State Sales Tax (Taxable Goods and Rate of Tax) (Amendment) (No 2) Order 2018.
“The Sarawak state government also agreed that the sales tax will be limited to petroleum products stipulated under Order 2018,” the statement read.
On June 10, the settlement was in doubt when Sarawak Consultative Committee on Malaysia Agreement 1963 (MA63) chairman Datuk Amar Mohd Asfia Awang Nassar said that Petronas had yet to pay the sales tax that was due to the state and instead filed an appeal over the matter in the Court of Appeal.
Mohd Asfia, also the Sarawak state legislative assembly speaker, said the Sarawak state government would continue its civil case against Petronas if no decision is reached through negotiations with the company.
Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg reportedly said on June 12 that Petronas would withdraw its appeal.
Besides Sarawak, it was reported that the Sabah state government had implemented a 5% sales tax on all petroleum products in the state with effect from March as its Chief Minister Datuk Seri Mohd Shafie Apdal revealed.
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