PRESS RELEASE: Sabah
Produces Oil Yet Bears the Heaviest Burden — Junz Wong Urges Urgent
Review of Oil & Gas Framework
KOTA
KINABALU, 3 April 2026 — Parti Warisan Vice President Datuk Junz
Wong has called for an urgent and comprehensive review of Sabah’s
oil and gas arrangements with PETRONAS, stressing that the ongoing
global fuel crisis has exposed structural vulnerabilities that must
be addressed to better protect Sabah’s economy and its people.
He
said the volatility in global energy markets—driven by geopolitical
tensions and supply disruptions—is already transmitting into
Malaysia through higher transport costs, inflationary pressures, and
strain on businesses, with Sabah facing a disproportionate impact due
to its higher cost structure and logistical challenges.
“Sabah
is an energy-producing state, yet our people and businesses continue
to bear higher costs and greater vulnerability during global fuel
shocks. This structural imbalance must be addressed with clarity and
urgency,” he said.
Diesel
Dependence Underscores Sabah’s Vulnerability
Wong
who is Tanjung Aru Assemblyman further noted that Sabah’s economic
structure makes it uniquely exposed to fuel volatility, particularly
due to its heavy reliance on diesel across multiple sectors.
“Unlike
in Peninsular Malaysia, diesel in Sabah is not merely an industrial
input - it is a daily necessity that underpins transportation,
agriculture, fisheries, and even electricity supply in many rural
areas,” he pointed out.
While
acknowledging that the Federal Government has retained diesel
subsidies in East Malaysia to cushion the rakyat, Wong stressed that
subsidies alone are not sufficient in the face of sustained global
uncertainty.
“These
measures provide temporary relief, but they do not address the deeper
structural risks. Sabah requires stronger and more sustainable
safeguards to withstand prolonged external shocks.”
A
Call for Constructive and Forward-Looking Reform
Wong
emphasised that the call for review is not about confrontation, but
about ensuring that Sabah’s resource framework remains fair,
relevant, and resilient in today’s economic realities.
“This
is not a question of politics, but of responsibility. We must ensure
that the frameworks governing Sabah’s resources are capable of
safeguarding our people, especially in times of global instability,"
he said.
He
noted that existing arrangements, rooted in legacy frameworks linked
to the Petroleum Development Act 1974, should be revisited to better
reflect present-day challenges, including rising fuel costs, supply
chain disruptions, and mounting pressures on SMEs.
From
Resource Extraction to Economic Protection
Wong
proposed that the review should focus on strengthening Sabah’s
long-term resilience, including:
*
Enhancing Sabah’s fair share of petroleum-derived revenue
*
Establishing state-focused energy security mechanisms to stabilise
fuel supply and pricing
*
Accelerating downstream oil and gas development within Sabah
*
Channelling additional resources into targeted support for SMEs and
vulnerable communities
"The
objective is clear - Sabah must not remain merely a producer of
resources, but must also be a beneficiary of stability, value
creation, and economic protection,” he stressed.
A
Cooperative Path Forward
Wong
stressed that any review must be pursued through constructive
engagement between the Federal Government, the Sabah State
Government, and key stakeholders, in line with the spirit of the
Malaysia Agreement 1963.
“A
fair and modernised framework will not weaken the Federation — it
will strengthen it by ensuring that all regions are better equipped
to face global challenges together," he said.
Time
for Decisive Leadership
With
global energy uncertainty expected to persist, Wong warned that
delays in reform would leave Sabah exposed to prolonged economic
strain, particularly for SMEs and lower-income households already
struggling with rising costs.
“We
cannot afford to remain reactive. The time has come for decisive,
responsible, and forward-looking leadership to safeguard Sabah’s
future," he stressed.
End
Press
Statement Released by:
YB
Datuk Junz Wong
Party
Warisan Vice President cum N22 Tanjung Aru Assemblyman
Contact:
017-8188801
