Yap: Don't blame Sarawak's oil demands for federal fiscal woes
KUCHING (Aug 7): Kota Sentosa assemblyman Wilfred Yap has rebutted former economy minister Datuk Seri Mohd Rafizi Ramli's recent remarks suggesting that increasing Sarawak's share of oil and gas revenues could impact Malaysia's sovereign credit rating and lead to higher interest on national debt.
He said it was 'misleading and unfair' to imply that recognising Sarawak's rightful entitlements could destabilise the country's financial position, warning that such a narrative risks turning the state into a scapegoat for deeper federal inefficiencies.
'Sarawak's demands are not arbitrary. They are grounded in legal and constitutional foundations, including the Malaysia Agreement 1963 (MA63), the Inter-Governmental Committee Report 1962, and the Federal Constitution – all of which recognise Sarawak's autonomy over land and natural resources,' he said in a statement.
He pointed out that from 1976 to 2020, Petronas had contributed over RM1.2 trillion to the federal government, while Sarawak – a major oil and gas producer – received only a 5 per cent royalty in return.
'To suggest that correcting this longstanding imbalance could threaten Malaysia's finances is to ignore the deeper issue, namely the federal government's over-reliance on Petronas as a fiscal lifeline in distribution of resources, and a long-term plan for national productivity.
'It should not be propped up by extractive dependence on Sarawak's oil and gas, but by reforms that enhance tax efficiency, reduce leakages, and grow high-value sectors across the country,' he said.
Yap said Malaysia must transition away from a centralised model of dependency.
He pointed out that a resilient economy is built on diversification and not on the back of one company, one region, or one commodity.
'The future lies in inclusive economic development, sound fiscal management, and transparent governance – not in questioning the constitutional rights of Sarawak.'
He also defended Sarawak's legal authority to manage its own resources through legislation such as the Oil Mining Ordinance 1958 and Distribution of Gas Ordinance 2016.
'Petros, our state-owned oil and gas entity, works professionally and transparently in full legal compliance. This is not rebellion; it is responsible governance,' he stressed.
He warned that attempting to frame Sarawak's rightful share as a fiscal threat sends the wrong signal not just to Sarawakians, but to the entire nation and the global market.
'Investor confidence, both domestic and foreign, is built on legal certainty, policy clarity, and institutional integrity.
'When Sarawak is given the fiscal space to develop, the entire country benefits. Investments in infrastructure, education, and industry in Sarawak will strengthen Malaysia's internal economy, uplift rural communities, and contribute to national GDP.
'This is the kind of decentralised development that Malaysia urgently needs,' he said.
He reiterated that the Gabungan Parti Sarawak-led state government is not seeking confrontation, but justice under the Federal Constitution and the terms of MA63.
'It is unjust for Sarawak to continually be told to accept less in the name of 'national interest' when that 'interest' is skewed by federal inefficiency and poor financial planning.
'Let us move forward with mutual respect, equity, and sound fiscal policy. The time has come for Putrajaya to embrace a new budget philosophy; one that empowers all states, especially resource-contributing ones like Sarawak, and reduces unhealthy dependence on a single revenue source.
'Malaysia must learn to stand on its own two feet – not lean unfairly on Sarawak's oil and gas,' said Yap. oil and gas rafizi ramli Wilfred Yap
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