THE 5% PETROLEUM PAYMENT IS NOT THE END OF THE CONVERSATION — SABAH MUST CONTINUE TO PURSUE ITS CONSTITUTIONAL AND ECONOMIC INTERESTS

By Daniel John Jambun, President Borneo’s Plight in Malaysia Foundation (BoPiMaFo)

KOTA KINABALU: Borneo’s Plight in Malaysia Foundation (BoPiMaFo) takes note of the recent remarks by Harris Salleh that the Petroleum Development Act 1974 (PDA) and the 5% petroleum cash payment are matters determined by the Federal Government and Parliament.

BoPiMaFo acknowledges that the PDA is a federal statute enacted by Parliament and that any amendment to its provisions would ordinarily require action at the federal level. In that respect, the legal framework governing the petroleum cash payment cannot be altered unilaterally by the Sabah State Cabinet.

However, this should not be interpreted to mean that the matter is beyond discussion, negotiation or reform.

Federal laws may be amended by Parliament, and governments may enter into new arrangements that better reflect changing circumstances and the legitimate aspirations of the people. The fact that a law exists does not preclude democratic debate or constitutional review of whether it continues to achieve fairness and equity.

More importantly, the issue of the 5% petroleum cash payment should not be confused with Sabah’s broader constitutional and financial rights under the Federal Constitution and the Malaysia Agreement 1963 (MA63). These are distinct legal questions that deserve independent consideration and faithful implementation.

For decades, Sabah’s abundant natural resources have made significant contributions to the national economy. It is therefore reasonable for Sabahans to expect that the management and distribution of resource-derived revenues should support sustainable development, improve infrastructure, reduce poverty and create greater opportunities for future generations.

BoPiMaFo reiterates that constructive engagement between the Federal Government and the State Government remains the most effective path towards achieving mutually beneficial outcomes. Political maturity requires openness to dialogue rather than treating existing arrangements as immutable.

Ultimately, the objective should not be confrontation but fairness, transparency and respect for the constitutional principles upon which Malaysia was founded.

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