by : Jofri Jaraiee
PETRONAS, the acronym for the Petroleum National Berhad, a Malaysian oil and gas company which was established on 17 August 1974. It is wholly owned by the Malaysian Government; the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources.
PETRONAS provides a great source of income for the country, with 45% of the government budget depends on dividends from PETRONAS, On February 26, 2015, PETRONAS cut capital expenditure budget in 2015 after reporting a fourth-quarter loss of $ 2 billion, the company’s first loss since it began reporting quarterly results of five years ago.
Recently, as reported in the Sarawak local newspapers, the Sarawak DAP chairman suggested that the Sarawak government should revoke work permits for all of PETRONAS personnel from the peninsula who holding executive and managerial positions in order to force the federal government to comply with the state government’s request for 20 per cent royalty of oil and gas.
Chong Chieng Jen (DAP-Kota Sentosa), which made this proposal, said the move will stop the operations of PETRONAS, Malaysia Liquefied Natural Gas (LNG) and all subsidiaries in the state.
Chong statement does not make sense and is not realistic because if it stopped its operation will causing huge losses to companies wholly owned by the Government and also to the national income. Every minute of oil and gas production operations closed it can result in substantial losses to the company and the country, it was not like closing the oil pumping station.
Are by restricting the entry of the executive and management of PETRONAS from peninsular entering Sarawak can solve the problem of royalty claims? What about the fate of local workers employed by PETRONAS would they be able to guarantee jobs after PETRONAS stopped operating in Sarawak? He needs to think outside the box and do not be too emotional in demanding something.
PETRONAS is not a private company that can make their own decisions without intervention from the federal government and any decision involving PETRONAS policy requires the approval and permission from the Malaysian government.
The negotiations involving these royalties should be discussed between the federal government and the state government rather than with the management of PETRONAS. The management of PETRONAS will not be able to fulfill completely the claims of royalties by the Sarawak government because it is a wholly-owned the Malaysian government where the Prime Minister in charge of giving a decision involving the rights of the country rather than the management of PETRONAS.
Perhaps the PETRONAS can give contracts to local companies but if that involves giving the royalty of course it can affect revenues and operating expenditures of PETRONAS. Almost half from its revenue is in the hands of the federal government, the state government can demand more from the budget every year, which is equivalent to the percentage of royalty without prejudice to PETRONAS operating budget.
45% of the federal government budget depends on dividends from PETRONAS then maybe it can use the federal government budget that has been given by PETRONAS to the federal government for Sarawak development without compromising PETRONAS operational expenditure.
In a more drastic approach, Chong also proposed the state BN join Pakatan Rakyat (PR) to form a national coalition government. He said the coalition, with 86 MPs, plus one from the Socialist Party of Malaysia (PSM), can form a government with a simple majority of 112 MPs if 25 BN MPs in the state jumped ship.
If in Sarawak, Dap already severed ties with PR Sarawak how he can invite national PR join Sarawak BN for a unity government. Does he have his own agenda because he failed to influence PR Sarawak to achieve his agenda?
Does he want to be with BN Sarawak because it is unable to fight his political enemies he should join opponents to achieve his goal which may be difficult to achieve if he continues with PR. That is Chong and his party’s affairs, we do not want to interfere in their internal affairs, it is up to the members and their supporters evaluate his desire to form a unity government with BN.
PAS remain firm in fighting for the welfare and rights of the people regardless of race and religion.
Sometimes we agree to disagree on a matter that involving the interests of the people and the country.
Sarawak government should be transparent and give priority to the people of Sarawak who have no place to stay by providing land titles and a lot of land to those who do not have a place to stay rather than just giving priority to developers and foreign investors who pursue profits alone.
Each of Sarawak citizen should be given a better place to stay instead of living in the landfill such as illegal immigrants. Sarawak have acreage as big as Peninsular Malaysia is able to meet the needs of place to stay for all the people of Sarawak.
We urge the state government under the leadership of Tan Sri Datuk Patinggi Haji Adenan Satem remain committed to focusing on the welfare of all people regardless of race, religion and political affiliation. Do not just do gimmick when near the time of the elections but after achieving victory still there are people of Sarawak who live in hardship and no permanent residence just squat on government land. Hope this matter got the attention of the state government if they still want to be given another chance to rule.
*** Jofri Jaraiee PAS Sarawak Deputy Commissioner III cum PAS Miri Chief
