Dr Ting Tiong Choon
MIRI: The Sarawak government’s agreement with Petronas on the payment of RM2 billion on the State Sales Tax (SST) for the year 2019 is received with sadness by Dr Ting Tiong Choon, Democratic Action Party (DAP) Sarawak’s director of political education, and Bruce Chai, Parti Sarawak Bersatu (PSB) vice president.
“The agreement by Sarawak GPS Government to accept Petronas’ RM2 Billion as the full payment for the 5% 2019 SST on Petroleum products is the biggest traitorous decision since PDA (Petroleum Development Act) 1974,” Dr Ting said.
“Over the past few years, Sarawakians have gradually awakening with pride to demand self-autonomy and our rights. We have been progressing in the right direction despite in slow motion. The agreement (on May 8) by GPS to forgo our right to claim revenue from our resources for their own political mileage has confirmed that Sarawak will never be self-autonomous in administration and finances under GPS,” he added.
The former Pujut assemblyman said the decision shows that Chief Minister Datuk Patinggi Abang Johari Tun Openg is not prioritising Sarawak’s future but his own survival.
“The 2019 Sarawak State Budget delivered by CM Abang Jo in Nov 2018, the potential of RM3.9 billion revenue from the new 5% SST on Petroleum products has given a smidgeon of hope of financial independence for Sarawak. The SST allows Sarawak to increase revenue but, more importantly, it provides the avenue for the State to embark on the road to self-autonomy in areas that are relevant and important to our future. The obvious shortfall in SST compensation by Petronas, in the vicinity of more than RM4 billion, has blown a big hole in Sarawak’s finance in these two years (2019 & 2020).” he said.
The state will need to dig into the State Reserve to pay for all the extravagant expenditures in the view of preparing for the coming state election, he added.
“To save the future of our children, Sarawak has no choice but to kick out GPS in the coming State Election,” he said.
Bruce Chai
Chai, who is also PSB Pujut Branch chairman, concurred with Dr. Ting adding that the second last paragraph in the Prime Minister’s Tan Sri Muhyiddin Yassin press statement reaffirmed Petronas’ ownership and control over Sarawak’s oil and gas rights.
“I don’t know whether it is good for the country but definitely not good for Sarawak. Firstly, we just lost all avenues to argue about the PDA which all these years Sarawak is fighting against. And secondly what is the precedent being set that we are reducing our state’s oil revenue instead of increasing it. The only part the CM mentioned was that we get more involvement in the oil and gas business but that has been spoken in the past 20 – 30 years and where are we today? Contracts are still being controlled by Petronas and West Malaysian companies still get almost all of the contracts. Where is the fairness in all these? I think we must set our goals on guarantees not assumptions and promises that can be broken,” Chai stressed.
A joint statement issued on May 8 by Sarawak and Petronas also said they were dropping their legal suits against each other and Sarawak had agreed to reduce the SST rate from the current five per cent in phases.
However, it said all previous agreements between the two parties made under the Petroleum Development Act 1974 are still valid and enforceable and Petronas is still recognised as having full ownership and control over national oil and gas development.