Sharifah Hasidah: PM to deal directly with CMs of Sabah, Sarawak on O&G rights

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Hasidah (third right) presents the sacrificial meat to a recipient.

KUCHING: Assistant Minister of Law, State-Federal Relations and Project Monitoring Sharifah Hasidah Sayeed Aman Ghazali has confirmed that the Prime Minister will deal directly with the Chief Ministers of Sarawak and Sabah on the oil and gas (O&G) rights of the states.

“Before this, the negotiation was done through the Ministry of Economic Affairs, but somehow the last steering committee (last month) the prime minister announced that he will personally take over the negotiation.

“He will deal directly with the chief ministers of Sabah and Sarawak. But whatever result there is will be brought to the Steering Committee also,” she said when met by journalists after launching the ‘Ibadah Qurban’ programme held at the Parti Pesaka Bumiputera Bersatu (PBB) Semariang service centre here today.

Over 200 individuals received the sacrificial meat during the programme held in conjunction with Hari Raya Aidiladha 2019.

Hasidah said there would be more Steering Committee meetings as well as meetings between the prime minister and the chief ministers of Sabah and Sarawak on the two state’s oil and gas rights.

“So we give it, maybe, until end of this year to finalise everything.”

She pointed out that the negotiations were not just about demanding 20 per cent oil and gas royalties which had been unanimously passed in the State Legislative Assembly (DUN).

She said Sarawak was particularly concerned about the five per cent sales tax on petroleum products given that this was “our right under the (Federal) Constitution”.

“So we are really firm on the five per cent sales tax. Also, we want to ensure that our OMO (Oil Mining Ordinance 1958) is implemented.

“These are the things we negotiate. We also talk on some commercial arrangement. There are many things that are in negotiations, not just one single thing,” explained the Semariang assemblywoman.

Hasidah said any form of negotiation would take time and sufficient time ought to be given to look into the details of things.

“Give us some time to look into details, to iron out something that needs to be taken care of. And we have to consider also the position of Petronas and the position of the country.

“There are so many things we have to consider. At the end of the day, what we want is a win-win situation,” she said.

The assistant minister was quick to add “but we are very positive (that) the outcome will be good”.

On Sabah’s demand for 40 per cent tax revenue collected be returned to the state, Hasidah said: “That is Sabah, we don’t know. The 40 per cent is different, we don’t have that in Sarawak.”

As far as Sarawak was concerned, she said “we focus on the five per cent sales tax” and the implementation of OMO.

“OMO is the regulatory law that says the oil is ours. So we want to regulate anybody who comes to use and mine our oil and gain profit from our oil.

“We want to regulate through our OMO. Under the Constitution, we have the right to enforce our law,” stressed Hasidah.