Bandar Kuching MP says PH’s oil royalty deal way better than BN’s

DAP's Dr Kelvin Yii says the Sarawak BN government signed away oil rights in 1974 and that whatever the new PH government is offering is better than that enjoyed during the rule of BN.

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Dr Kelvin Yii.

PETALING JAYA: Bandar Kuching MP Dr Kelvin Yii says there is no reason why the current and previous administrations in Sarawak should have any qualms about Pakatan Harapan’s (PH) plans for oil royalties and profit-sharing.

The DAP backbencher told FMT that any offer PH put on the table was far better than what Barisan Nasional (BN) had in place during its decades-long hold on Sarawak and the federal government before May 9.

“A lot of people pin the blame on West Malaysians for allegedly taking away and infringing on our rights and resources. But the reality is that Sarawak BN, or Gabungan Parti Sarawak (GPS) as is it now called, was an accomplice to this.

“They signed away our oil rights in 1974. They passed the Territorial Seas Act in 2012 to limit our authority on the continental shelf around Sarawak.

“These so-called local parties tabled these laws too,” Yii said in an interview.

Now that BN had lost the 14th general election (GE14), Yii said its Sarawak component parties were trying hard to make themselves relevant. “But they don’t realise that they were part of the problem in the first place.”

Under PH’s GE14 election manifesto, oil royalties worth 20% of the gross value of oil plus 50% of tax revenue collected in Sarawak was promised to the state government.

Prime Minister Dr Mahathir Mohamad later said the 20% royalty payment to petroleum producing states would be based on the profit obtained from the state concerned, and not revenue. Economic Affairs Minister Mohamed Azmin Ali said the government would only make good on this promise after the relevant amendments were made to existing laws.

Both came under fire from opposition and Sarawak MPs.

Putrajaya has since said Sarawak will now enjoy 20% of royalties from its oil-producing efforts and the 5% existing royalty.

The “20 plus 5” deal, Yii said, was a starting point for the state to regain full autonomy of its oil resources and not a U-turn.

It will also get 50% of tax revenue from the state.

Earlier this week, Azmin told Parliament the government planned to set up a committee to review the Petroleum Development Act 1974 and the Sarawak Oil Ordinance 1958 in order to realise the election promise.

Asked if this new deal would be accepted by the people of Sarawak, Yii acknowledged that some were disappointed by what they had seen of PH’s administration so far on the matter.

“I understand the disappointment of the people. I understand their discontentment because there is a basis for this in this context. Sarawak was sidelined by the previous administration for 50 to 60 years.

“There is high expectation that with the coming in of the new government these things will be quickly rectified. We inherited a broken system. We are working hard to make sure we correct what is wrong and get a good deal.”

Another pressing issue PH had to look into in Sarawak was its lack of development in rural areas of the state, Yii said, adding that 45% of clinics in the state were run by nurses while a third did not have electricity.

“We need more development funds. This is because of the alleged corruption, wastage, and negligence by the state government and BN as a whole. Because of them, Sarawak is behind in basic development.

“It’s not only completely unfair and unjust, this affects the quality of healthcare in Sarawak. This has been a prolonged issue for over 10 to 20 years under BN’s watch.

“We need greater attention and allocation so we can address these issues,” he said.

PH has also promised to build infrastructure for all longhouses and villages, as well as supply basic amenities such as treated water and electricity to all areas in Sarawak, and provide 100,000 jobs for Sarawak’s unemployed youths.

Youth empowerment is another pet project Yii is working on now that he has been elected MP for Bandar Kuching. “Young people have a huge role to play in running our nation. They are the leaders of today.”

He added that youths in Sarawak were not as involved in social movements as their counterparts in the peninsula.

“They have never had the opportunity. They don’t have the platforms for their voices to be heard.” -FMT