Sarawak push for oil control can harm nation - Mahathir

Summary

• Former PM Dr Mahathir Mohamad warns the country will lose out from Sarawak's push for autonomy control of its oil and gas resources.

• He says the national policies and interests must come first in a federation and reminds Sarawak that it has also benefited from being a part of Malaysia.

• Mahathir calls for the matter to be discussed in the Parliament.

Former Prime Minister Dr Mahathir Mohamad has cautioned Sarawak's attempt to seize control of oil and gas resources in the state from Petronas.

In an interview with a news portal, he said the push by Sarawak will have a negative impact on the nation and its economy.

"The nation will lose by the arrangements being negotiated between the federal government and the state government," he said, as quoted by the Free Malaysia Today.

Mahathir, who served twice as the prime minister, was commenting on the ongoing dispute between Sarawak and Putrajaya over the control of oil and gas resources within the state territory.

Sarawak is challenging the 1974 Petroleum Development Act (PDA), which grants Petronas full control over Malaysia’s hydrocarbon resources.

The state argues that the PDA does not apply within its jurisdiction and instead insists on using the Oil Mining Ordinance 1958, which grants authority over oil and gas found within 200 nautical miles off its coast.

Sarawak claims it holds 60.87 percent of Malaysia’s proven and probable petroleum reserves and accounts for 90 percent of liquefied natural gas exports.

National policies must come first

In the interview, Mahathir also reminded that Sarawak is a part of a federation, where the national policies and its interests must come first.

Mahathir pointed out that Sarawak was among the states that had benefited economically from being part of the Malaysian federation.

"When Sarawak was under British rule, did they build the Twin Towers? They were very poor. The British took all their money," he said.

While noting that the Borneo state might deserve to earn more from the oil and gas found in its territory, Mahathir said possessing the resources alone would not guarantee it will prosper.

Instead, he stressed, it requires strong governance to achieve success in managing the resources, as Petronas had demonstrated.

Mahathir also expressed his disappointment to see the Sarawak state administration using their political influence to pressure Putrajaya to bend to their demands.

He reportedly said the issue must be brought to the Parliament for discussion.

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