By Daniel John Jambun, Borneo’s Plight in Malaysia Foundation (BoPiMaFo)
Sabahans Deserve Transparency on the Real Economic Returns
KOTA KINABALU: Borneo’s Plight in Malaysia Foundation (BoPiMaFo) takes note of reports that Sabah’s participation in oil and gas contracts has increased to 38%, a figure being presented as evidence of the success of Sabah’s oil and gas localisation policies.
We acknowledge any genuine effort to increase the participation of Sabah-based companies in the oil and gas industry.
If more Sabah companies are winning contracts, creating jobs, developing technical expertise and building local capacity, that is certainly a positive development.
However, Sabahans must not be misled into believing that contract holdership is the same as ownership of resources or a fair share of the wealth generated from Sabah’s petroleum resources.
These are two very different matters.
CONTRACTS ARE NOT THE SAME AS REVENUE
The fundamental question remains unanswered:
How much of the wealth generated from Sabah’s oil and gas resources is actually returning to Sabah?
A company may receive a service contract, but the largest share of petroleum wealth is generated from the ownership, production, sale and taxation of the resource itself.
Sabahans therefore have every right to ask:
What is the total value of oil and gas produced from Sabah annually?
How much revenue does the Federal Government receive from Sabah’s petroleum sector?
How much does Petronas receive?
How much has Sabah received in return?
What are the actual financial returns generated by SMJ Energy’s investments?
How much dividend has flowed back into Sabah’s Consolidated Fund?
How much has Sabah’s fiscal position improved as a result?
Without answers to these questions, claims of success remain incomplete.
THE REAL TEST IS THE WELL-BEING OF SABAHANS
For decades, Sabah has been one of Malaysia’s most resource-rich territories.
Yet Sabah continues to face:
among the highest poverty rates in the Federation;
inadequate infrastructure;
water shortages;
electricity challenges;
poor rural connectivity;
and persistent development gaps.
If Sabah’s participation in the oil and gas sector is indeed improving significantly, then Sabahans should begin to see corresponding improvements in their daily lives.
The question is simple:
Where are the measurable outcomes?
SABAHANS WANT FACTS, NOT NARRATIVES
BoPiMaFo believes Sabahans have matured politically and economically.
They no longer accept slogans as substitutes for results.
The public deserves disclosure of:
total annual contract values awarded in Sabah;
actual value awarded to Sabah companies;
jobs created for Sabahans;
dividends earned by State-linked entities;
revenue generated for the State Government;
and the overall economic impact on Sabah.
Transparency should not be feared.
Transparency builds confidence.
THE BIGGER ISSUE REMAINS SABAH’S CONSTITUTIONAL RIGHTS
While contract participation is welcome, it must not distract attention from the larger unresolved issues:
Sabah’s 40% constitutional revenue entitlement under Articles 112C and 112D of the Federal Constitution;
Sabah’s rights over its natural resources;
the continuing dispute over petroleum revenues;
and the need for greater fiscal autonomy consistent with the Malaysia Agreement 1963.
These issues go to the heart of Sabah’s economic future.
No amount of contract participation can replace Sabah’s constitutional and legal rights.
BoPiMaFo welcomes any genuine increase in Sabah’s participation in the oil and gas industry.
However, Sabahans should not confuse participation with ownership, nor contracts with wealth distribution.
The real measure of success is not how many contracts are awarded.
The real measure is whether Sabah becomes more prosperous, whether State revenues increase, whether public services improve, and whether future generations of Sabahans finally receive a fair return from the resources that belong to their homeland.
Until then, Sabahans are entitled to continue asking the most important question of all:
If Sabah’s oil and gas sector is doing so well, why are so many Sabahans still waiting to see the benefits?
