KUCHING, Jan 27 2026: SUPP Stakan branch asserted that Minister in the Prime Minister in the Department (Law and Institutional Reform) Azalina Othman Said's statement that "nothing in Malaysia Agreement 1963 (MA63)" mentions oil and gas ownership relies on a literal, narrow reading of the document.
SUPP Stakan branch: MA63 was not a standalone contract; it was predicated on the recommendations of the IGC Report.
However, it said the legal reality is that MA63 preserved Sarawak's existing constitutional and legislative framework.
“It is crucial to address the perspective that viewing MA63 in isolation provides an incomplete legal picture,” the branch in a statement when responding to Azalina’s statement in Parliament yesterday.
It added that to fully understand the constitutional landscape of Sarawak’s rights, MA63 must be read concurrently with the Inter-Governmental Committee (IGC) Report 1962 and the Sarawak Oil Mining Ordinance (OMO) 1958.
“The Inter-Governmental Committee (IGC) Report as a foundational document,” it said, adding that MA63 was not a standalone contract; it was predicated on the recommendations of the IGC Report.
“Under Article VIII of MA63, the governments of the Federation of Malaya, North Borneo, and Sarawak agreed to take legislative, executive, or other action to implement the assurances, undertakings, and recommendations contained in the IGC Report.
“The IGC Report specifically ensured that existing laws in the Borneo States would continue to operate unless amended or repealed by the appropriate authority.
“This includes Sarawak's land and mineral rights, which were never intended to be unilaterally surrendered upon the formation of Malaysia.
“The OMO 1958 is a state law that predates the formation of Malaysia. It grants Sarawak the authority to regulate the exploration and mining of petroleum within its boundaries.
“Because the OMO 1958 was never repealed by the Sarawak State Legislative Assembly, it remains valid law under Article 162 of the Federal Constitution, which preserves "existing laws" that were in effect before Merdeka Day or Malaysia Day.
“While the federal government cites the Petroleum Development Act (PDA) 1974 as the governing law, legal experts in Sarawak argue that the PDA cannot supersede the OMO without Sarawak's consent.
“This is because the OMO concerns "land," which is a State matter under the Ninth Schedule of the Federal Constitution.
“Sarawak’s rights over its O&G resources are anchored in the Sarawak (Alteration of Boundaries) Order in Council 1954, which defined Sarawak’s boundaries to include the continental shelf.
When Sarawak joined Malaysia in 1963, it did so with these boundaries intact,” the branch said, stating that any federal law (like the PDA 1974 or the Territorial Sea Act 2012) that attempts to alter these boundaries or strip the state of its mineral rights without the State’s consent is a violation of the spirit and letter of MA63.
The branch that by reading MA63 alongside the IGC Report, it becomes clear that Sarawak’s power over its resources, enshrined in the OMO 1958, was a condition of its participation in the Federation, not a right that was signed away.
“Dismissing these rights by looking only at the text of MA63 ignores the "foundational documents" that the minister herself admits set the terms for the formation of Malaysia,” it said.
SUPP Stakan branch was commenting on the 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 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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