Regulatory certainty in O&G industry key to investor confidence, says SBF

KUCHING (Feb 24): Regulatory certainty in the oil and gas sector is crucial to investor confidence and long-term economic planning, says the Sarawak Business Federation (SBF).

The federation said the Sarawak government’s move to seek judicial clarification from the Federal Court on the constitutional applicability of key federal petroleum legislation in the state would help provide clearer legal delineation of jurisdiction and legislative authority.

“SBF supports the Sarawak government’s decision to seek judicial clarification from the Federal Court on the constitutional applicability of the Petroleum Development Act 1974, Continental Shelf Act 1966 and Petroleum Mining Act 1966 as they relate to Sarawak.

“From the standpoint of the business community, regulatory certainty in the oil and gas sector is essential,” it said in a statement.

SBF said the energy industry remains a cornerstone of Sarawak’s economy, influencing investment decisions, industrial expansion, supply chains and employment across multiple sectors.

“Clear legal delineation of jurisdiction and legislative authority will provide greater assurance to investors and industry participants, enabling more confident long-term planning,” it said.

SBF described the move to seek an authoritative judicial determination as a responsible and orderly approach to addressing constitutional questions of significant economic importance.

“At the same time, we welcome continued constructive engagement between the state and federal governments to ensure that the outcome would strengthen both Sarawak’s economic interests and national cohesion.”

SBF expressed confidence that the legal process would contribute positively towards establishing a stable, transparent and sustainable framework for the development of Sarawak’s natural resources.