The total revenue of 44 petroleum companies around the world in 2015 is worth US$5,674,351 trillion and company Syarikat Petroliam Nasional Bhd (Petronas) was ranked 19th with revenue of US$100.74 billion after Gazprom.

The federal government-owned companies had contributed RM881.3 billion in dividends, taxes, royalties and duties to the federal government and the state government from 1974 until the end of 2014. If we include the foregone revenue (in the form of gas subsidy) totaling RM230.6 billion after regulated gas prices came into effect on May 1997, Petronas total financial contribution to the Malaysian economy could reach RM1.11 trillion in 40 years.

This is equivalent to RM27.75 billion a year or RM2.3125 billion a month!

The total RM1.11 trillion was enough to settle the Malaysian government debt amounting to RM623 billion, paid debt guaranteed by the government debt amounted of RM175.8 billion (until the end of September 2015) and provide an extra of RM40 billion in Budget 2016. The budget surplus of RM40 billion is enough to double expenses for health, education and housing.

In fact, the number of RM1.11 trillion is equivalent to 1.7 times the amount of total investment assets of the Employees Provident Fund (EPF) of RM667.21 billion as at end of June 2015 and 2.7 times the amount of foreign reserves of Bank Negara Malaysia (BNM), which amounted to US$93.9 billion (RM417.2 billion) as of mid-November 2015.

In addition, the total contribution of RM1.11 billion Petronas until today is enough to cover the Budget 2013 to Budget 2016. Prior to 2009, the allocation for national budget were below RM200 billion. Just imagine, if 10 percent of the amount of RM1.11 trillion being set aside for a natural resources fund, Malaysia total savings in these funds would reached RM111.2 billion. This is nearly half of the allocation for Budget 2016.

We can see how Malaysia, under current BN-regime, had failed to manage the funds of natural resources wisely. We are lagging behind in terms of managing our natural resources wealth compared to other oil-producing countries around the world.

Establish the Gas & Petroleum Sarawak Berhad (GPS)

A new Act should be enacted to allow the state to establish its own oil company named Syarikat Gas & Petroleum Sarawak Berhad (GPS) and the process of auditing the company should be placed under the responsibility of the state legislative assembly to avoid any misconduct and waste of money.

Just imagine, if 20 percent from RM1.11 trillion Petronas contribution to the federal government in the form of royalties paid to the state since 1974, a total of RM222 billion would be used to develop Sarawak. The Sarawak government would not wait for 53 years to persuade the federal government to build the Pan-Borneo Highway if 20 percent of the oil royalties paid to the government of Sarawak beginning of 1974.

In fact, with the amount of RM222 billion, the state would be able to provide better infrastructure, clean water and electricity supply, building schools and hospitals, provide proper drainage systems, and building flood embankments for the benefits of the people of Sarawak. In fact, 1 percent of the total RM222 billion in royalties can be used to settle the Sarawak government debt to the federal government amounting RM2.5 billion.

The GPS (as I suggested) should be led 100 percent by Sarawakians and is wholly owned by the state government (state-owned company). I suggest the company to be led by professionals among Melanaus, Malays, Chinese, Iban, Bidayuh and Orang Ulu.

If this idea and suggestion come true, GPS would be list as the 45th petroleum companies established in this world. This means, the recovery of oil from offshore Sarawak and on Sarawak land will be owned by the state itself. If GPS is set up, an executive supervisory body named the GPS executive board shall be formed under an ordinance to report on the status of management, operations and finance from time to time to the state finance minister.

The annual financial statements of GPS shall be presented to the Sarawak state legislative assembly by the finance minister to ensure transparency and accountability in the management of the company. With this, the state can avoid the occurrence of abuse of power and avoid the practice of cronyism, nepotism and corruption in the management of the company.

Any dividend and petroleum tax from the GPS will be channeled to the Sarawakian Retirement Trust Fund (Tabung Amanah Persaraan Sarawak) (TAPS) owned by all 2.8 million Sarawakian people and managed by the Sarawak state government. It will be a fund to safeguard the state’s oil wealth for the future generations.

It is time Sarawak stand on their own feet without expecting compassion from the federal government which is controlled by Umno leaders. Sarawak’s natural resource revenue should be returned in full to the development of Sarawak. Giving Sarawak autonomy to establish its own petroleum company means giving the rights to manage state finance and taxation.

ABDUL AZIZ ISA is special assistant to the Sarawak DAP chairperson and Petra Jaya DAP Socialist Youth publicity secretary.