MIRI, Jan 29 2026 – Progressive Democratic Party (PDP) Youth chief David Yeo Ang Lim has told a federal minister that Malaysia Agreement 1963 (MA63) needs to be understood in the broader constitutional and historical context.
PDP Youth chief David Yeo: Interpreting the silence of MA63 as a denial of rights risks undermining the original purpose of the agreement
“It is true that MA63 does not specifically mention oil and gas. However, MA63 was never intended as a sector-specific contract,” Yeo said in response to a statement by Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said.
He said MA63 is a fundamental agreement that formed Malaysia as a federation based on negotiation, protection of rights, autonomy and mutual trust.
“Interpreting the silence of MA63 as a denial of rights risks undermining the original purpose of the agreement,” he said.
Yeo added that when Sarawak joined Malaysia, Sarawak had its own legislature and laws, including the Oil Mining Ordinance 1958 (OMO 1958) which regulates petroleum resources.
He said the spirit of MA63 is to maintain this existing power unless expressly and legally amended, adding that in constitutional interpretation, silence should not be construed as a surrender of rights.
Yeo also explained: “From a pragmatic point of view, autonomy without an economic foundation is unsustainable.
“Good governance requires fiscal discipline and control over the drivers of development. It is not reasonable to assume autonomy for Sarawak alone,” Yeo added.
He noted the collaboration between Petronas and Petroleum Sarawak Berhad (Petros) which reflects recognition of Sarawak’s unique position.
“This cooperative federalism approach is the most appropriate to ensure the unity and stability of the country,” he said.
Yeo said PDP Youth supports the Gabungan Parti Sarawak (GPS) approach which is consistent in fighting for Sarawak's rights through constitutional channels, constructive dialogue and the spirit of the federation.
He said discussions on MA63 should not be viewed narrowly or literally, but must take into account the original purpose of the formation of Malaysia as a partner of the federation.
“The ongoing cooperation between the Sarawak government and the federal government, including the involvement of Petros with Petronas, proves that a negotiated and respectful approach can produce a stable solution without compromising national interests.
“PDP Youth believes that maintaining the spirit of MA63, namely justice, meaningful autonomy and cooperative federalism, is in line with GPS's aspirations for a strong Sarawak within a united Malaysia,” he said.
In a written reply to a question raised by Saratok Member of Parliament Ali Biju in the Dewan Rakyat on January 26, who asked the prime minister to state the federal government’s latest stance on Sarawak’s claims relating to the Order in Council 1954 and the Territorial Seas Act 2012, as well as the extent to which the MA63 negotiations can avoid overlapping powers between Petros and Petronas.
Azalina has said that the matter was being considered in the Federal Court based on Petronas's input and official response and that the government respects the independence of the judiciary and will abide by its decision.
Azalina also stated that MA63 is a fundamental document for the formation of Malaysia but does not contain provisions relating to the ownership, management or regulation of oil and gas, in addition to stressing that the industry is determined by federal legislation, particularly the Petroleum Development Act 1974 which vests Petronas with petroleum.
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