Friday, 6 June 2014

It's Sarawak's rights to ask for an increase in oil and gas royalties, says See

By Simon Peter

KUCHING, June 6, 2014: Sarawak PKR vice chairman See Chee How has strongly defended the Sarawak State Legislative in tabling a motion to seek an increase in the oil and gas royalties from 5% to 20%.



The motion, tabled by Semop State Assemblyman Abdullah Saidol, who is also the State BN Backbenchers Club chairman, was unanimously approved by the State legislators from both the BN and Opposition parties last month.

Responding to an article  entitled "Is oil royalty hike the solution?" published by the Edge weekly publication on May 28, See said the article was a " typically knee-jerked reaction or rhetoric of Malayan politicians and writers who probably are not familiar with the territorial features of Sabah and Sarawak and the delicate intuition of the East Malaysian communities may be hurtful and divisive. "

Picture: See (centre) says it is Sarawak's rights to ask for an increase in oil and gas royalties

Defending the rights of Sarawak to ask for an increase in oil and gas royalties from 5% to 20%, See said: “The issue of Sarawak and other oil producing Malaysian states asking for an increase in oil and gas royalties from 5% to 20% must be examined and deliberated in a critical yet rational manner, taking into consideration the sensitivity of the East Malaysians in this matter.”

“It lays bare our consciousness towards mutual understanding between the people from the Borneo states and Malaya for a meaningful national integration which until now still rings empty.”

"The Pakatan Rakyat coalition had made its pledge to increase the oil and gas royalties from 5% to 20% when it comes to power. The BN coalition government is hesitant and reluctant.

"The writer - Madiha Fuad -  had actually recognised that Sabah and Sarawak are the least developed despite them being the richest states in the Federation.

"But his arguments against the two Borneo states for improved and enlarged share of the exploit from their petroleum deposits was, uncharacteristically quoting unnamed market observers and industry analysts, questioning Sarawak’s wealth management, that the state has large revenue base with several uncompleted or pending projects.

"Undoubtedly, the new Sarawak state administration must address the issue of fair distribution of opportunity in the operation, utilization and management of the state’s endowment of rich natural resources and make use of the wealth thereby generated to bring greater development and improve the lives of all Sarawakians.

"However, it is nonsensical to suggest that Sarawak must show the state government can make good use of the money before it is entitled to ask for oil and gas royalty hike. As if the federal administration is free from leakages, corruption, wastages and financial mismanagement.

"Since the Auditor General’s Reports were referred to, the writer and his group of unnamed market observers and industry analysts should be equally objective and critical with the federal fund management or mismanagement?

"Pick any one of the national scandals and recover the monies misappropriated and that alone is enough to pay the oil producing states their entitlement for a good number of years.

"What about disclosing the Petronas monies received by the federal government annually, as well as those in the  Production Sharing Agreements (PSCs), compare to the oil producing states?

"And please be frank. The federal government wholly owns Petronas. In contrast, there is no equity holding in Petronas for the oil producing states?

"The most interesting being the writer’s comparison of annual budgets between Sarawak (RM4.2 billion), Sabah (RM4.1 billion) and Trengganu (RM2 billion) with Selangor (“country’s most developed state”) of RM1.6 billion for this year.

“ Is that an issue when Sarawak and Sabah has a budget 2.5 times that of Selangor with their land sizes 15 times (Sarawak 124.450 sq km) and 7 times (Sabah 73,631 sq km) bigger than Selangor (8,104 sq km).”


”This quite sums up the ignorance and prejudice to keep the East Malaysian way behind,” See expressed his disgust. 

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