By Daniel John Jambun
President,
Borneo Plight in Malaysia Foundation (BoPiMaFo)
KOTA KINABALU — The Borneo Plight in Malaysia Foundation (BoPiMaFo) today expressed deep concern over the recently signed US–Malaysia Trade Agreement, warning that the deal could severely undermine Sabah’s control over its own natural resources, including oil, gas, and critical minerals, in direct violation of the spirit of the Malaysia Agreement 1963 (MA63).
BoPiMaFo said it shares the concern raised by civil society group Aliran, which questioned the lopsided and opaque nature of the agreement signed in Washington on 26 October 2025, describing it as a potential threat to Malaysia’s economic sovereignty and strategic autonomy.
“This is not just a trade deal — it is a long-term political and economic commitment that affects Sabah’s constitutional rights over land and resources,” said BoPiMaFo President, Daniel J. Jambun.
“If Malaysia has signed away the right to control the export of rare earths, oil, gas, or minerals without consulting Sabah, then the Federal Government has overstepped its constitutional boundaries under MA63.”
Sabah’s Resource Rights Ignored
BoPiMaFo noted that one of the clauses in the agreement reportedly prohibits Malaysia from imposing export quotas or bans on rare earths and other “critical minerals” to the United States.
“This clause alone effectively removes the power of resource-rich states like Sabah to regulate their own natural wealth. It transforms Malaysia into a raw materials supplier to US industries while denying local downstream development,” Daniel said.
“That is not partnership — that is modern economic colonisation.”
He added that the absence of any reciprocal guarantees on technology transfer, value-added processing, or environmental safeguards means Sabah’s finite resources could be depleted without any real long-term benefit to its people.
RM3.4 Billion LNG Purchase Commitment Alarming
BoPiMaFo also highlighted the reported commitment by Malaysia to purchase up to RM3.4 billion annually in US liquefied natural gas (LNG) through multi-year Petronas agreements.
“This is absurd — Malaysia, and Sabah in particular, are already gas producers. Why is Petronas buying LNG from the US while Sabah’s own gas remains underutilised?” Daniel asked.
“Such a deal makes a mockery of Sabah’s effort to assert ownership and downstream participation through SMJ Energy. It risks locking Sabah out of its own future energy potential.”
A Blow to Transparency and Neutrality
BoPiMaFo further warned that the agreement’s provisions on digital trade, national security cooperation, and regulatory alignment could entrench US influence over Malaysia’s policymaking, weakening national and state-level oversight.
“The commitment to ‘strengthen economic and national security cooperation’ with the US raises geopolitical risks for Sabah, which lies at the heart of the South China Sea region. We cannot afford to become pawns in superpower rivalries,” Daniel said.
He added that signing such a far-reaching agreement without parliamentary scrutiny or state consultation amounts to executive overreach that undermines both democracy and federalism.
Sabah Must Be Consulted
BoPiMaFo reminded the Federal Government that Sabah’s rights over land, forests, and natural resources are enshrined under MA63, the Federal Constitution, and the IGC Report, and cannot be unilaterally bargained away in any international trade deal.
“No prime minister, no cabinet, and no ministry has the authority to commit Sabah’s resources to foreign powers without the State Government’s consent,” Daniel said.
“If this deal touches Sabah’s oil, gas, or minerals — even indirectly — it must first be debated in Parliament and scrutinised by the Sabah State Legislative Assembly.”
Call for Full Disclosure and Safeguards
BoPiMaFo called on the Federal Government to:
Publish the full text of the US–Malaysia Trade Agreement for public and parliamentary scrutiny.
Disclose all clauses related to natural resources, energy, digital policy, and national security cooperation.
Engage with the Sabah and Sarawak Governments to ensure MA63 compliance.
Include sunset clauses and renegotiation rights for any commitment affecting finite natural resources.
“If this agreement truly benefits Malaysia, it should withstand full transparency. Anything less suggests something to hide,” Daniel said.
