Carbon Capture Utilisation and Storage Bill should not apply to Sarawak, Economy Ministry told

KUCHING (Aug 8): The Sarawak government has informed the Ministry of Economy that the proposed Carbon Capture Utilisation and Storage Bill should not apply to Sarawak.

Deputy Minister in Sarawak Premier’s Office (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali said nevertheless, as agreed between Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, the state government is prepared to work with Putrajaya in the promotion and development of the Carbon Capture Utilisation and Storage (CCUS) industry in accordance with state laws.

She said this in a statement today after Economy Minister Rafizi Ramli was reported yesterday as saying that there were issues relating to the boundaries between the federal and state government with reference to the Continental Shelf Act 1966, the Exclusive Economic Zone Act 1984 and the Territorial Sea Act 2012 in developing the CCUS framework for Malaysia.

She said the Sarawak government presented a paper at the National Energy Council on Aug 2, 2024 on the Sarawak government’s authority over CCUS projects in Sarawak.

The Sarawak government’s position is that all carbon storage projects undertaken within the boundaries of Sarawak must be regulated by state laws, she added.

This paper was received without objection by members of the Council, she pointed out.

She said the Sarawak government was surprised by Rafizi’s statement that there are issues relating to the boundaries between the Federal and State Government with reference to the Continental Shelf Act 1966, the Exclusive Economic Zone Act 1984 and the Territorial Sea Act 2012.

The Ministry of Economy in the statement further alleged that discussion on different interpretations of boundaries (between the Federal Government and the Sarawak Government) was ongoing.

Sharifah Hasidah said however, the Sarawak government stated categorically that the boundaries of Sarawak were not a subject matter under discussion through the MA63 platform.

“The boundaries of Sarawak, including the Continental Shelf, its right therein, can not be subject to any negotiation.

“This had been made absolutely clear by the Premier at the first Steering Committee Meeting on the Implementation of Malaysia Agreement 1963 on Dec 17 2018,” she said.

“The boundaries of Sarawak were extended by the Sarawak (Alteration of Boundaries) Order 1954 to include the area of the continental shelf being the seabed and its subsoil which lies beneath the high seas contiguous to the territorial waters of Sarawak.

“The continental shelf and the seabed and subsoil thereof falls within the definition of ‘state land’ under Section 2 of the Land Code and is under the control of the Sarawak Government by virtue of section 12 thereof.

“The continental shelf within the boundaries of Sarawak is therefore part of the territory of Sarawak,” she said.

Sharifah Hasidah said Article 1 (3) of the Federal Constitution states that the territory of Sarawak is the territory comprising therein before Malaysia Day.

Thus, she added, after Malaysia Day the continental shelf is part of Sarawak’s territory, and any law passed by the State Legislature by reason of Article 73(b) applies to the continental shelf within the boundaries of Sarawak.

Carbon storage involves the use and occupation of state land and, therefore, must be regulated according to state laws, she pointed out.

“It is noted that the Aug 7 press statement by the Minister of Economy sought to interpret the boundaries of Sarawak with reference to only the said three Acts of Parliament but failed to consider at all the Sarawak (Alteration of Boundaries) Order 1954 and the Land Code as well as Article 1 (3) of the Federal Constitution. These laws are clear and unambiguous and leave no room for different interpretations.

“The Continental Shelf Act 1966 was extended to Sarawak via the Emergency Essential Powers Ordinance No. 10, 1969. This Emergency Ordinance had lapsed under Article 1 50(7) of the Federal Constitution.

“Therefore, this Act no longer applies to Sarawak. Even if this Act is still applicable in Sarawak, the definition of “continental shelf” in this Act clearly states that the continental shelf shall not affect the territory of the states or the limits of territorial waters of the states and the rights and powers of the State Authorities therein.

“Therefore, the Continental Shelf Act 1966 does not affect the territory of Sarawak and the rights and powers of the Sarawak Government over that part of the continental shelf, which lies within the boundaries of Sarawak,” she said.