Idris Buang: Negative effects on M’sian economy, political stability if Petronas takes Sarawak to court

KUCHING (Sept 10): If Petroliam Nasional Berhad (Petronas) decides to challenge Sarawak’s authority over its natural resources in court, there will be negative repercussions on Malaysia’s economy as a whole, opined Datuk Idris Buang.

The Parti Pesaka Bumiputera Bersatu (PBB) information chief said media reports that Petronas is mulling over legal action against the Sarawak government is regrettable.

“If this course is pursued, I dread that it would not augur well for the whole of Malaysia – both in the short and long run economically. And if certain irresponsible quarters take advantage of the situation, it may cause unnecessary strain on the federal and state relationship, or even political rifts to some extent,” he told The Borneo Post.

The State Legislative Assembly Deputy Speaker said he needs to raise a “warning flag” because Malaysians cannot afford to disrupt the present relationship between the Sarawak and federal Madani government led by Prime Datuk Seri Anwar Ibrahim, which is considered the best since the formation of Malaysia.

“We truly appreciate and should safeguard this kind of good relations for as long as we call ourselves Malaysians who want to progress to greater heights.

“Prime Minister Datuk Seri Anwar has clearly said to the effect that this is the time not about talking but to implement what has been agreed in the Malaysia Agreement of 1963 (MA63),” he said.

The parties concerned should just adhere to working seriously on fulfilling the terms of MA63 and the Malaysian constitution, he stressed.

“It ought to be already very clear by now that Sarawak’s sovereign rights to its oil and gas, land, forests, and other natural resources have been specifically entrenched and safeguarded by MA63. Our Federal Constitution is ruled by the spirit of MA63, without which Malaysia was never formed.

“Invariably, we must all give meaning to it. MA63 preserves Sarawak’s unique position with regard to its autonomy in many areas. Therefore, for Petronas to debunk all that had been stipulated in MA63 would not be so easy without a full and rigorous defence and counteraction from the Sarawak side.

“Court action may extensively and holistically escalate to many years of legal battles with many related issues surfacing. One very strong issue is on the validity of Petronas’s right and power under the Petroleum Development Act 1974 (PDA74) itself, which will be definitely called into question. Over the years, a lot of legal views and arguments were aired in the media about the PDA74’s weakness and the manner it was passed without any constitutional approval by Sarawak and Sabah’s state assemblies,” he explained.

According to Idris, there are strong experts’ opinions asserting that despite the PDA74, Sarawak’s sovereign rights to its natural resources remain with Sarawak and all the laws relating to them that have existed since before the formation of Malaysia remain in force including the Sarawak Land Code, Oil Mining Ordinance, and Forest Ordinance among others.

“The Queen in Council Order of 1954 registered in the UN stipulates the boundaries of the Colony of Sarawak shall include the area of the continental shelf, which includes its seabed and subsoil beneath the high seas contiguous to its territorial waters,” he stated.

“Sarawak’s rights to all its natural resources over land extend to its territorial seas, including its seabed and subsoil, which by the Geneva Convention of 1958 and UNCOS 1982 extend to up to 200 nautical miles.”

The Muara Tuang assemblyman said the federal government is responsible to subscribe to such treaties on behalf of the whole of Malaysia vis-a-vis other nations to regulate and manage its international boundaries.

According to him, when it comes to rights over the natural resources in the continental shelf, including its seabed and subsoil, as situated within such boundaries of the member of its federation like Sabah and Sarawak, domestic laws shall prevail.

“We do not want any unscrupulous body of people to cause political stirs or even upheavals to disrupt Malaysia as a harmonious and prosperous nation.

“Therefore, Petronas, being a responsible national corporation, must look holistically and beyond just merely its business, but the sanctity to help maintain Malaysia’s stability in every aspect, including socio-political dynamics as well.

“I trust Sarawak, being a faithful and loyal member of the federation, would do its best to do the same. There is no better option for both parties than to explore and gain firm mutual cooperation in all areas of common interest, while respecting the laws of Sarawak as safeguarded by MA63,” added Idris, who is also Gabungan Parti Sarawak (GPS) information chief.