SABAH MUST ACT DECISIVELY TO
DEFEND ITS OIL AND GAS RIGHTS UNDER MA63
[Kota
Kinabalu, 2 March 2026] — In light of the recent High Court
decision involving Petroliam Nasional Berhad (Petronas) and Petroleum
Sarawak Berhad (Petros), and the subsequent constitutional petition
filed by the Sarawak Government before the Federal Court, Kapayan
Assemblyperson Chin Tek Ming today called on the Sabah Government to
take immediate and decisive constitutional action to safeguard
Sabah’s oil and gas rights under the Malaysia Agreement 1963
(MA63).
Chin
emphasised that the High Court’s ruling on the RM7.95 million bank
guarantee was strictly confined to banking and contractual
principles. The Court expressly declined to determine the
constitutional validity or applicability of federal petroleum
legislation in Sarawak, affirming that such questions fall within the
exclusive original jurisdiction of the Federal Court.
“The
constitutional issues are now squarely before the apex court,” Chin
said. “Sarawak has invoked Articles 4(3) and 128(1) of the Federal
Constitution to obtain a definitive ruling. That is the proper
constitutional pathway.”
He
stressed that this development places a fundamental constitutional
question at the forefront:
“Whether
sovereign and regulatory authority over petroleum resources vested in
the States upon Malaysia Day pursuant to MA63 and the constitutional
arrangements of 1963, or whether such authority was subsequently and
validly transferred to the Federation under the Petroleum Development
Act 1974 (PDA 1974).”
Chin
noted that Sarawak’s petition challenges the constitutional footing
of key federal legislation and raises serious questions regarding the
preservation of pre-Malaysia laws under Articles 161 and 162 of the
Federal Constitution.
“These
constitutional questions are not unique to Sarawak. Sabah entered the
Federation under the same constitutional compact in 1963. If the
scope of state rights over petroleum resources is being judicially
defined, Sabah cannot afford to remain silent” he said.
Chin
therefore urged the Sabah Government to:
“Immediately
establish a more proactive high-level State Constitutional Legal Task
Force comprising constitutional experts and senior counsel to conduct
an urgent and comprehensive review of Sabah’s rights under MA63 and
the Federal Constitution;
Formally
consider initiating proceedings before the Federal Court to seek
authoritative clarification of Sabah’s constitutional position,
including issues relating to ownership, regulatory authority, and oil
revenue entitlement; and
Engage
in structured coordination with the Sarawak Government to present a
united and principled Borneo position on matters affecting state
sovereignty over natural resources.”
“Sabah
must not be a bystander while constitutional boundaries that directly
affect our petroleum resources and fiscal future are being delineated
before the nation’s highest court,” Chin asserted.
He
further stressed that the issue transcends party politics.
“As
an Opposition State Assemblyperson and a practising lawyer, I state
unequivocally that if the Sabah Government undertakes firm and
principled constitutional action to defend Sabah’s rights under
MA63, I do believe the Opposition will give full and unequivocal
support. This matter concerns constitutional fidelity, fiscal
justice, and the long-term interests of the people of Sabah.”
“Seeking
judicial clarification is not confrontation; it is constitutional
responsibility. A clear and authoritative ruling by the Federal Court
will strengthen the Federation by restoring certainty and reinforcing
the constitutional balance agreed in 1963. Sabah must act —
decisively, lawfully, and without delay.” Chin concluded.
Prepared
by:
Chin
Tek Ming
N.25
Kapayan ADUN
2
March 2026
