Seek clarification from Putrajaya, Sabah minister says over Ambalat issue

Summary

• Masidi Manjun tells all quarters to study the facts first before commenting on PM Anwar Ibrahim’s recent remarks on the joint development of the disputed Ambalat Block with Indonesia.

• He also says that the prime minister only issued a general statement without elaborating on details.

• The Sabah finance minister also says the meeting to discuss 40pct of federal revenue for Sabah has been postponed, not cancelled.

Sabah Finance Minister Masidi Manjun urged all quarters to study the facts first before commenting on Prime Minister Anwar Ibrahim’s recent remarks on the joint development of the disputed Ambalat Block with Indonesia.

“I think to me the better way is to ask for clarification from the federal government so that we know the facts instead of just speculations,” he told reporters after hosting the SMJ Energy Annual Dinner last night.

Masidi (above) added that Anwar had merely issued a general statement and did not elaborate.

“We’d better get the facts right before making comments because otherwise it just becomes speculation,” he said, adding Sabah MPs will likely seek clarification in the next Parliament sitting.

Joint development

Last month, Anwar said Malaysia and Indonesia should proceed with joint development of the disputed oil-rich Ambalat area without waiting to resolve legal and regulatory issues.

“If we wait for everything to be finalised, it could take decades,” Bernama reported Anwar saying, after talks with Indonesian President Prabowo Subianto.

Anwar’s announcement had since attracted fierce criticisms, especially from Sabah leaders, who questioned him for making the decision without consulting the state.

Sabah Deputy Chief Minister I Jeffrey Kitingan said Anwar owes the state an explanation and expressed his disappointment over the development, adding Sabah has not been consulted over matters related to its territorial rights.

Yesterday, opposition leader Hamzah Zainudin called for the matter to be debated in Parliament.

Meeting rescheduled

Masidi said the key meeting to decide on Sabah’s constitutional claim to 40 percent of federal revenue collected from the state has been rescheduled to July 15, following confusion over why the earlier planned session on June 30 was not held.

Masidi clarified that the Chief Minister’s Office had sent two letters in June to the federal government - including an offer to host the meeting.

“But I think (…) the deputy prime minister (Fadillah Yusof) requested a change of date,” he said.

On July 1, Kitingan lamented that a meeting to determine Sabah’s long-standing claim to a 40 percent revenue entitlement on June 30 failed to materialise, after a crucial letter intended to trigger the session was never dispatched.

He said the meeting scheduled for June 30 and endorsed by the Sabah cabinet did not proceed because the formal invitation from the state secretary’s office was inexplicably withheld.

“I had written to the chief minister. The cabinet agreed to host the meeting on June 30. But when we checked, the letter was not sent. So, I want an explanation now,” Kitingan said.

However, Masidi insisted that a formal correspondence had been made, just not from the department Kitingan referred to.

“The chief minister actually sent two letters in June - not only reminding about the committee, but also offering Sabah, offering to host it,” he mentioned, adding the correspondence had been properly acknowledged by Fadillah.

Don’t depend on oil royalty

Touching on the oil royalty issue, Masidi said demanding a higher amount from the current five percent from Petronas is not the only solution for Sabah to benefit from the wealth of its petroleum resources.

The minister said focus should shift towards building an industry ecosystem that allows oil wealth to reach people directly, particularly those involved in services and supply chains tied to oil and gas operations.

“We are saying that oil royalty is not the only means of getting more oil money.

“We should look into other avenues (…) If we only rely on royalty, we don’t create jobs because the proceeds from the royalty just go to the state government’s consolidated funds.

“But if it’s achieved by the creation of a vibrant oil and gas industry, the money goes directly to the pockets of the people,” he added.

Last month, former Sabah chief minister Salleh Said Keruak said the state’s long-standing demand for a 20 percent oil royalty from Petronas should not be sidelined by moves to involve the state in downstream oil and gas activities.

While welcoming efforts to involve Sabah in downstream sectors such as petrochemical processing and refining, Salleh said it must not be seen as a replacement for direct revenue entitlements.

“Royalty refers to direct revenue from resource extraction - a matter of entitlement, not merely economic collaboration,” Free Malaysia Today reported him as saying.

Sabah leaders have long criticised the five percent rate, established under the Petroleum Development Act 1974, as outdated and disproportionate.

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