Chong Chieng Jen
KUCHING: Sarawak and Sabah state governments should take the opportunity to own equity in Petroliam Nasional Berhad (Petronas), said Deputy Minister of Domestic Trade and Consumer Affairs Chong Chieng Jen.
With the federal government to consider selling the stakes in the energy giant, the Sarawak Pakatan Harapan (PH) chairman pointed out that it was a good idea and should not be missed by the two states.
“For Sarawak and Sabah governments to own a part of Petronas’ equity is a good proposal as the company has not only gained profit from both the states but also from its various operations worldwide.
“In fact, if the two states can have 20 per cent or more shares from Petronas, the amount to be obtained would ensure lucrative a income for the two in the future,” he said when met by reporters at the Consumerism Roadshow and Semeba Festival at Kampung Semeba yesterday night.
Given Petronas’ excellent track record and the profits gained, the Stampin assemblyman stressed that the Sarawak government should not reject the proposal as it can provide an income to the state in the years to come.
“As such, I hope that Chief Minister Datuk Patinggi Abang Johari Tun Openg will not reject this proposal – much like he rejected PH Sarawak’s offer on 20 per cent oil royalty and 50 per cent tax revenue for the state’s coffers during the 14th General Elections,” he added.
On Tuesday, Prime Minister Tun Dr Mahathir Mohammad told Reuters that Malaysia considers to sell Petronas’ stakes to states where the company’s oil and gas fields were, in an effort to raise funds for the debt-laden government.
Mahathir pointed out that such a move may provide Sarawak and Sabah a say in the running of the world’s third largest exporter of liquefied natural gas (LNG).
Both the states have the country’s most abundant and productive oil and gas reserves in their waters in the South China Sea.
He said the government could not meet a demand made by the states for the increase of the royalties paid by the company to 20 per cent of its profit as this could cost Petronas up to US$ 7 billion a year.