*THE CONCERN THAT SARAWAK’S CONTROL OVER ITS OIL AND GAS RESOURCES COULD FALL INTO CORRUPT HANDS is a valid consideration*. However, there are several reasons why Sarawak’s control might still be seen as preferable to the current federal control, even with the risk of local corruption:
1. *Greater Accountability to Local Populations*
• *No National or Local Oversight over PDA74*: Currently under the Petroleum Development Act 1974 (PDA74), Petronas is a deep state secret organisation not accountable to anyone except the Prime Minister of Malaysia. This has led to vast corruption as contracts are farmed to six preferred government-linked corporations and corrupt enrichment of the Malayan elites. PDA74 has also enabled the institutionalisation of the New Economic Policy leading to the creation of a race-religion apartheid state which discriminates against and oppresses minorities especially the people of Sarawak and North Borneo (Sabah). Malaya’s plunder of oil and gas used to develop Malaya has left the 2 former British colonies far behind in development as the poorest vassal states of Malaya.
• *Sarawak Control:* Sarawak control of its petroleum resources means they are directly governed by a state-level administration, and its people are more likely to have access to local mechanisms for accountability, such as state assembly scrutiny, civil society activism, and media freedom. Federal control often distanced decision-making from the people of Sarawak, and local governments may be more responsive to the region's needs and grievances.
• *Empowerment through Autonomy*: With greater control over its resources, Sarawak has the potential to craft policies that are specifically tailored to its unique economic and social context. This could lead to more equitable development compared to a centralised, one-size-fits-all approach imposed by the federal government.
2. *Restoration of Sovereignty and Self-Determination*
• *Historical Justice*: The core argument for Sarawak's control over its resources is rooted in the historical promise made in the Malaysia Agreement 1963 (MA63 if valid) to maintain the state’s autonomy over its land and natural resources. If Sarawak continues to be governed under federal control in this matter, it represents an ongoing violation of those agreements and a failure to address the colonial legacy.
• *Decolonization:* The call for Sarawak to control its resources is also part of a broader desire to decolonize the state's relationship with the federal government. While corruption is a risk, achieving local control would allow Sarawak to build its governance capacity, potentially strengthening accountability over time.
3. *Potential for Reform and Systemic Change*
• *Local Reform Opportunities* : While corruption is a concern, Sarawak would have the opportunity to implement reforms that address local governance issues more effectively than under the federal government. Over time, the state could introduce more robust transparency measures, anti-corruption laws, and independent auditing processes. These reforms could be more directly shaped by the will of the people and their local needs.
• *Leveraging External Pressure:* The international community increasingly supports resource sovereignty and governance reforms, particularly when it comes to indigenous or regional control over natural wealth. Sarawak could leverage international support to strengthen its internal governance systems and create mechanisms that reduce corruption.
4. *Economic Disparities and Fairer Revenue Distribution*
• *Unequal Revenue Sharing:* Sarawak has long complained about the disproportionate share of oil and gas revenue it receives from the federal government. Under federal control, much of the wealth generated from Sarawak’s resources is siphoned off to the central government, leaving the state with insufficient funding for development and social welfare. With control over its resources, Sarawak could retain a larger portion of the revenue, allowing for reinvestment in local infrastructure, education, healthcare, and social programs—essentially, a more direct benefit to its citizens.
• *Local Economic Control:* Sarawak could make more informed decisions about how its resources are managed, potentially ensuring that the benefits flow more directly to local communities. This would also reduce the incentive for federal corruption to drain Sarawak's wealth for national purposes that don't necessarily benefit its people.
5. *The Risk of Federal Corruption is Also Present*
• *Corruption at the Federal Level:* Sarawak is not the only region in Malaysia where corruption is a concern. The federal government has faced its own corruption scandals, especially regarding the management of resources, allocation of funds, and political patronage. In fact, the concentration of power at the federal level can often lead to larger-scale corruption that is harder to address at the local level.
• *Sarawak as a Check on National Corruption:* With Sarawak exercising control over its own resources, it could act as a check on federal overreach and corruption. It could negotiate more favourable terms for itself, preventing the central government from exploiting its resources without fair compensation or oversight.
6. *A Pragmatic Path to Addressing Corruption*
• *Governance Improvements Over Time:* While corruption is a risk, it is also true that governance structures can evolve. Sarawak, like many regions, has the potential to strengthen its democratic institutions and governance mechanisms if given more power and autonomy. Over time, Sarawak could potentially build better accountability structures, such as independent oversight bodies, transparent budgeting, and local civic engagement, all of which could help reduce corruption in the long run.
• *Collaboration with Civil Society:* The active role of local NGOs, media, and civil society organisations can also play a role in ensuring that any control over resources remains transparent and accountable. These organisations could hold the state government to account, similar to how they monitor federal practices.
*Conclusion*
*While the risk of corruption exists under both federal and state control, the fundamental issue at stake is Sarawak's sovereignty and its historical right to control its resources.* The potential for corruption at the state level doesn't invalidate Sarawak's right to self-determination but rather highlights the need for stronger governance and accountability mechanisms, which are more likely to be developed and implemented at the local level with Sarawak in control of its own resources. Ultimately, local control would empower Sarawak to address corruption within its own systems, while also ensuring that the benefits of its resources remain more equitably distributed to its people.
*If the federal government remains unwilling to honour the Malaysia Agreement 1963 (MA63), Sarawak must assert its right to self-determination and reclaim control over its territory and resources, including the option to exit the federation.*
Robert Pei,
SSRANZ 29/11/2024
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