By Former Petagas Assemblyman Datuk James Ligunjang JP
KOTA KINABALU: By 18th July 2024, the scenario where the federal government is unable to meet the demand of reimbursing Sabah’s 40% Revenue Entitlements as stated in the Federal Constitution since 1975, one possible approach for the state government could be to consider demanding the monetization of these unpaid amounts into equity in Petronas and its subsidiaries.
Monetizing the debts into equity implies converting the outstanding debt into shares or ownership stakes in Petronas and its subsidiaries.
By doing so, the state government of Sabah would effectively become a shareholder in these entities, potentially providing long-term financial benefits and influence.
This approach would align with the objective of compensating Sabah for the unpaid revenue entitlements.
Monetizing the debts into equity could provide Sabah with a share in the profits and benefits of Petronas and its subsidiaries, which could contribute to the state’s economic growth and development.
Demanding the monetization of unpaid revenue entitlements into equity in Petronas and its subsidiaries is one possible approach for Sabah if the federal government fails to meet its constitutional obligations.
The feasibility and implications of such a demand would need to be carefully assessed, taking into account legal, financial, and strategic considerations of the state of Sabah and its future in the Federation of Malaysia.
