Sarawak completes RM1.8b Bintulu Port takeover

KUCHING: Sarawak’s RM1.8 billion takeover of Bintulu Port has been formally completed today (Sept 16) following the handover of four legal instruments governing its transfer from federal to state control.

The legal transfer itself took effect on Sept 1, marking Bintulu Port’s change in status from a federal port to a Sarawak state port.

The Ministry of Infrastructure and Port Development said the four documents comprised the Ports (Privatization) (Amendment to Schedule) Order 2026 and the Bintulu Port Authority (Dissolution) (Vesting Date) Order 2026.

The other two concerned the commencement of the Declaration of an Area in the Bintulu District to be a Federal Port (Repeal) Act 2024 [Act 858] and the Bintulu Port Authority (Dissolution) Act 2024 [Act 859].

According to the ministry, Federal Government Gazettes P.U. (B) 313 and P.U. (B) 314 dated Aug 28 fixed Sept 1 as the commencement date for Acts 858 and 859.

With both Acts in force, the former Bintulu Port Authority was dissolved, with Bintulu Port Authority (Sarawak) taking over responsibility for the port.

Bintulu Port Authority (Sarawak) is a state statutory body established on Sept 1, 2024 under the Port Authorities Ordinance, 1961.

Under the Bintulu Port Authority (Dissolution) (Vesting Date) Order 2026, all property, rights, interests and obligations of the former authority were transferred to and vested in the Sarawak government from Sept 1.

The transfer gives Sarawak control over one of the country’s key international ports and Malaysia’s main export gateway for liquefied natural gas.

The takeover followed more than three years of negotiations between the Sarawak and federal governments.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg first announced Sarawak’s intention to take over Bintulu Port on Jan 30, 2023, with the Sarawak Cabinet approving the proposal on Feb 23 that year.

Prime Minister Datuk Seri Anwar Ibrahim subsequently announced the federal government’s agreement to the takeover during the tabling of Budget 2024 on Oct 13, 2023.

Both governments signed a memorandum of understanding on March 22, 2024, paving the way for the necessary legislative process.

The Declaration of an Area in the Bintulu District to be a Federal Port (Repeal) Bill 2024 and the Bintulu Port Authority (Dissolution) Bill 2024 were subsequently passed by the Dewan Rakyat on July 17, 2024.

The takeover value was agreed at RM1.8 billion on Feb 4 this year.

A Completion Agreement was signed on June 21, followed by the handover of the agreed payment by the Sarawak government to the federal government in Bintulu.

The commencement dates for Acts 858 and 859 were then gazetted on Aug 28.

The former Bintulu Port Authority had operated as a federal statutory body under the Transport Ministry since its establishment under the Bintulu Port Authority Act 1981.

Bintulu Port began operations in 1983 as a deep-water port developed to support industrial growth in Bintulu, particularly the liquefied natural gas sector.

Its strategic location along major international shipping routes has since established the port as an important international trade and logistics gateway