Sabah’s opposition divided over oil
January 26, 2012: The oil royalty issue took centre stage during Chinese New Year, with Anwar pledging 20 percent if Pakatan comes to power, Jeffrey demanding 50 percent while there also those pushing for 70 percent.
Mere hours before Opposition Leader Anwar Ibrahim flew into Kota Kinabalu for a PKR Chinese New Year gathering, Jeffrey Kitingan issued a policy statement on the federal government’s payment of oil royalty to the oil states.
Jeffrey’s State Reform Party (STAR) wants a hike in the present measly five percent oil royalty to 50 percent, covering both the inner and outer waters. More on this in a while.
Earlier, just before Chinese New Year, the Sabah Progressive Party (SAPP) revealed its economic plan which, among others, held out without much hope for a 20 percent oil royalty. The party’s other ideas for the oil and gas resources are to try and squeeze export duties, excise, and land taxes.
Anwar, meanwhile, in a fiery speech on the need for a change of the system from the present one based on race to an alternative model (read: Pakatan Rakyat) based on equal rights, promised 20 percent oil royalty to Sabah and Sarawak. Jeffrey, who was present, looked on impassively.
The fact that no one in Sarawak has so far had the guts to demand an upward review in the oil royalty seemed to be beside the point for Anwar. What Sabah gets, Sarawak too will get.
Indeed, the Sarawak leaders have so far been falling all over themselves – the opposition has been silent – to reassure the people that the measly five percent is more than compensated by generous financial allocations from the federal government. No doubt this explains why Sarawak is the second poorest state in Malaysia after Sabah.
Back to Anwar: he gave no details as usual on his 20 percent oil royalty pledge beyond warning this time that the monies will not be handed to local leaders through so-called projects but will instead be channelled directly to the people.
The pledge was one he has made before, beginning with the 2008 general election, and stepped up during the aborted and/or thwarted Sept 16, 2008 “people’s revolution”.
Too little, too late
But at least in Anwar’s case, he knows where he is going with the 20 percent pledge. He intends to honour the pledge when, according to him, his opposition alliance seizes the reins of power.
In Jeffrey’s case, he provides more details than Anwar – he (Anwar) will probably claim it is a work in progress – but not enough, according to his (Jeffrey’s) younger critics, “and no hope in hell of ever making his claim stick”.
Jeffrey’s critics – and by extension Anwar’s – fume that even his 50 percent oil royalty demand “is not good enough” and is “a case of too little, too late”.
They want a 70 percent oil royalty backdated to 1976 when a controversial oil agreement was signed between the federal and Sabah and Sarawak state governments. The benchmark is the various oil-producing provinces, in neighbouring Indonesia, which get 70 percet. The extreme are the Muslim republics in the Russian Federation which get to keep all their oil and gas revenue.
Hence, the critics consider the oil agreement invalid. Also, the people were not consulted, they point out.
Moreover, two former chief ministers – Mustapha Harun and Mohd Fuad Donald Stephens – refused to sign the oil agreement, both holding out for a much higher oil royalty of 20 percent or more.
Another factor against the oil agreement was that it was signed by former chief minister Harris Mohd Salleh within days of the death of Stephens, his predecessor, in a fiery air crash under mysterious circumstances which, except for the intervention on the part of Harris, would have taken more lives. These included, among others, then Sarawak chief minister Abdul Rahman Ya’kub and federal finance minister and Petronas chairman Tengku Razaleigh Hamzah.
Jeffrey’s master plan
The young critics, mostly from Jeffrey’s United Borneo Front (UBF), want in addition eight percent interest compounded yearly and backdated to 1976.
Still, there’s no hope that the federal government under the Barisan Nasional will ever revise the oil royalty, and if by some miracle they do, it’s likely to be confined to the inner waters only and be no more than 10 percent at the most.
The thinking is that there is a case for taking the oil royalty issue to the United Nations and the international community based on the denial of oil royalty from the outer waters and the virtual theft of oil and gas since 1976 by the federal government.
The international community is likely to rule that Malaysia will not be entitled to the outer waters of Sabah and Sarawak if both states are independent. So, there’s no reason why the two states should not be entitled to oil royalty from the outer waters as autonomous states in the Malaysian Federation.
Should the young critics win the day on the oil royalty issue, Jeffrey’s other ideas can come into play.
The local hero in Sabah politics envisages a holistic development of oil and gas resources under his party’s master plan. The federal government has paid little heed to the development of downstream oil and gas industries in Sabah and Sarawak. Instead, Petronas has focused on development such as infrastructure in the non-oil states.
Anwar, under his 20 percent pledge, may also do well to adopt the other ideas in the Jeffrey’s master plan.
Let's see if they (the opposition) can make good on their "stars and moon"
BalasPadampembangkang mmg panda jika berjanji, tapi nak melaksanakan tidak sehebat yang dikata.
Padamselagi belum berjaya mengambil alih Putrajaya, selagi itu pembangkang tidak akan melakukan apa2. janji ni sukar sangat mau percaya. kalau dapat ambil alih Putrajaya sekalipun mungkin masa tu sudah lupa janji terang bulan mereka.
PadamKita hanya boleh tahu sama ada PR mampu melakukan apa yang mereka menjanjikan itu sehingga mereka berjaya menawan Putrajaya.
Padamkita kena pandai menilai janji2 dari pembangkang, walaupun sabah mendpt royalti minyak 5 peratus, tapi peruntukan untuk sabah adalah tinggi.
BalasPadamrasanya bukan mudah untuk menaikkan kadar royalti minyak yang sudah termeterai dalam perjanjian.
PadamKeuntungan minyak perlulah diurus dengan baik supaya boleh memanfaatkan rakyat jelata.
PadamKota Kinabalu: Sabahans have been advised not to be easily influenced by empty promises made by the opposition.
BalasPadam"It is the norm for opposition parties to make all kinds of promises because they know they are not the ruling party and all their promises remain false promises," said Chief Minister Datuk Seri Musa Aman after attending the MCA Chinese New Year Open House here, Tuesday.
He said this in response to the promises made by Parti Keadilan Rakyat (PKR) leader Datuk Seri Anwar Ibrahim here, recently, that PKR will increase the oil royalty to 20 per cent if they gain support from the people of Sabah.
Musa said he believes the people of Sabah, know and understand that the promises made by the opposition are promises which are never fulfilled.
"I believe the people in Sabah know that unlike the opposition, Barisan Nasional (BN) makes and keeps their promises," he said.
He cited the RM100 assistance to school students and the RM500 BR1M for households earning below RM3,000 a month as proof that BN keeps its promises.
Meanwhile, Musa also applauded the encouraging response from the public who attended the Chinese New Year Open house.
"This is a good sign for us in Sabah and throughout Malaysia, where people in this country show mutual respect by visiting open houses of various festivals held here.
"This makes it possible to bring about development, to our country Malaysia, especially Sabah because of the warmth and unity that exists between communities of different races and religions in the nation.
The open house was graced by Head of State Datuk Juhar Mahiruddin and also attended by Health Minister Datuk Seri Liow Tiong Lai and Datuk Peter Pang En Yin among others.
Hanya kerajaan saja yang boleh memikirkan dan pelaksanakan program bantuan sedemikian kreatif untuk rakyat. tidak seperti pembangkang yang hanya pandai brcakap dan mengelirukan rakyat.
PadamPerbahasan terhadap isu ini tidka akan berakhir jika masih ada pihak yang tidak berpuashati dengan keputusan yang telah dipersetujui.
BalasPadamPasti akan mendapat pelbagai tenyangan jika tidak memberi sebarang manfaat kepada rakyat Sabah.
BalasPadamSo for the royalty issues, Sabahans have been advised not to be easily influenced by empty promises made by the opposition.
BalasPadamIt is the norm for opposition parties to make all kinds of promises because they know they are not the ruling party and all their promises remain false promises.
Siapa yang pintar sangat sign agreement 5% minyak royalti? Kesilapan sudah berlaku dari dulu lagi.
BalasPadamJangankan cakap mahu bergabung, isu royalti minyak pun sudah tiada kesepakatan.
BalasPadammacam senang saja dia mahu tentukan isu royalti minyak sabah.. ada yang mahu bagi 20%, ada yang mahu bagi 50% dan ada juga yang mahu bagi 70%.. macam minyak Sabah dia yang punya..
BalasPadamkalau saya, saya tidak akan terpengaruh.. lagipun petronas telah memperbanyakkan komitmen pelaburan mereka di negeri ini.. entah pula dengan rakyat Sabah yang lain..
BalasPadam