The Petronas Subsidiaries Case

The Petronas Subsidiaries Case: Federal-State AG Roles and MA63 Judicial Autonomy

This case is only nominally about service of papers and which AG sits in court. Substantively, it is about who controls hydrocarbons governance in Sarawak: Malaya or Sarawak.

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1. Why Petronas Is Fighting This So Hard

Petronas is not defending RM120m. That amount is irrelevant.

Petronas is defending a precedent:

If Sarawak’s DGO is upheld, then Petronas is no longer the uncontested monopoly over downstream gas inside Sarawak.

Once that happens:

 • Sarawak can license, regulate, and penalise gas distributors.

 • Petronas becomes just another commercial operator subject to state law.

 • Every future gas project must go through state regulatory compliance, not just federal fiat.

That is an existential shift for Petronas’ business model.

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2. Why the Federal AG’s Position Aligns With Petronas

On paper, the federal Attorney-General is meant to be neutral. In practice, the record tells a more interesting story.

Factually:

 • Federal AG’s Chambers supported Petronas’ procedural position.

 • Federal counsel wrote to the court indicating no objection to the judicial review.

 • Federal counsel argued the federal AG is the sole guardian of public interest.

These positions are reflected in the court record.

Whether this amounts to “non-neutrality” is interpretation. But the effect is unmistakable: the federal AG’s submissions defend centralised legal authority, not Sarawak’s statutory autonomy.

In other words, the federal AG’s legal stance happens to protect exactly the same structure that Petronas depends on.

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3. Why Sarawak Is Framing the Fight as Constitutional

Sarawak’s legal strategy is extremely deliberate:

They are not rushing to argue that the DGO is valid.

They are doing something far more dangerous:

They are challenging who even has the right to define the battlefield.

Their real argument is this:

“Before you decide whether the DGO is lawful, decide who represents the public interest in state law.”

If the court accepts that:

 • The State Attorney-General is constitutionally independent.

 • The federal AG is not automatically the guardian of state public interest.

Then everything changes downstream:

 • Sarawak controls its own enforcement.

 • Federal agencies lose automatic legal authority over state statutes.

 • State regulatory autonomy becomes judicially real, not political rhetoric.

This is not a gas case anymore.

This is jurisdictional warfare.

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4. How This Ties Back to MA63 and the IGC

This is where history comes back to collect its unpaid debts. This is where it gets politically radioactive.

The Inter-Governmental Committee (IGC) Report of 1962 did not treat Sabah and Sarawak as administrative provinces. It envisioned:

 • Separate legal systems.

 • Separate public interest guardians.

 • Real autonomy in legal governance.

Putrajaya ignored this for 60 years.

Sarawak is now re-litigating MA63 in court, one doctrine at a time.

Not by grand speeches. By technical procedural fights that reshape precedent.

This is actually more dangerous to federal control than any political rally.

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5. Why This Is a Lose-Lose Situation for Malaya

Malaya has only two options:

Option A: Win the Case

They:

 • Centralise legal authority

 • Reassert Petronas dominance

 • But politically confirm that MA63 is hollow rhetoric

This fuels:

 • Sabah and Sarawak alignment

 • East Malaysian autonomy movements

 • Long-term legitimacy erosion

Option B: Lose the Case

They:

 • Fragment legal sovereignty

 • Set precedent for state regulatory supremacy

 • Lose control over oil & gas governance

Which is economically catastrophic for federal fiscal structure.

Either way, Malaya bleeds.

This is why this case is existential, not technical.

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6. Why This Is Bigger Than Petronas

If Sarawak wins on the AG point, the same doctrine applies to:

 • Land acquisition

 • Forestry

 • Carbon credits

 • Environmental regulation

 • Tax enforcement

 • Infrastructure licensing

Every future federal encroachment becomes challengeable as:

“Federal AG has no standing over state public interest.”

Federations are not weakened by autonomy. They are strengthened through constitutional judicial authority.

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Bottom Line (The Real One)

This case is not about gas.

It is about whether Malaysia is:

 • A unitary state pretending to be federal, or

 • A genuine federation where states possess real legal sovereignty

Sarawak is forcing the judiciary to answer that question.

And Malaya cannot escape it anymore.

This case may be cited repeatedly in future challenges where state autonomy and federal authority intersect.

BP Reports: https://www.theborneopost.com/2026/01/24/roles-of-federal-state-ags-under-spotlight-in-petronas-subsidiaries-hearing/

Thank you Sabah

Thank You, Sabah. Thank You, Sabahan.

You have spoken loudly and clearly in the Sabah state election (PRN17), and the message has shaken the entire nation.

To PMX Anwar Ibrahim, PKR, DAP, and Perikatan Nasional (PN) — take note. 

The people of Sabah have rejected you, and they rejected you decisively.

To PKR

You preached reform, anti-corruption, meritocracy, and multiculturalism for over 30 years. 

Yet when the moment came, Rafizi and the so-called reformists were sidelined to make way for Nurul Izzah — classic nepotism. PKR has turned into a “father-and-daughter” party.

Out of 12 seats contested, PKR won only ONE — and even that victory came from an imported candidate from another party.

To DAP

You lost ALL 8 seats you contested — every single traditional urban stronghold. In Luyang, Warisan crushed you with a 6,000-vote majority in a seat you once held by 18,000.

This is not just a defeat. This is the first tremor of a political earthquake coming for DAP in Sabah, and perhaps beyond.

You treated non-Malay voters like your fixed deposit, your personal insurance policy. 

When it mattered most, you went quiet, passive, and betrayed the community’s trust. You are turning into MCA 2.0.

Sarawak has recognised UEC. Hajiji has promised recognition if GRS returns to power. 

Yet at the federal level, DAP remains silent — acting deaf and dumb.

The loudest voices defending Chinese education and rights today are Abang Johari, Hajiji Noor, and Shafie Apdal — none of them Chinese. Think about that.

To Perikatan Nasional (PN)

You contested 41 seats and won only ONE.

Sabah, with more than 70% Muslim population, delivered a resounding rejection of your brand of radicalism, racism, and religious extremism. 

Even your own PAS candidate backtracked and dared not utter a word about banning alcohol, gambling, concerts, enforcing dress codes, or implementing hudud.

In Peninsular Malaysia, non-Muslims are your favourite punching bag — easy targets. 

In Sabah, you didn’t even dare try. 

Why? 

Because Sabah Muslims rejected your Semenanjung Taliban-style politics outright.

Sabahan Muslims are tolerant, respectful, progressive, and moderate. 

They do not weaponise race and religion the way PN does. 

That is the true face of Malaysian Islam — and Sabah showed it to the entire country.

Thank you, Sabah.

Thank you for proving that a Muslim-majority state can firmly reject extremist politics.

Thank you for reminding the nation what unity, maturity, and true Malaysian values look like.

The election is over. 

The old chapter of “Sabah for Sabahans” must now evolve into the next chapter: Borneo for Malaysia.

Sabah and Sarawak — you are the original natives of this land. 

You have preserved the soul of Malaysia when the peninsula lost its way. 

The political class in Semenanjung is rotten to the core. 

The only beacon of hope left is Borneo.

We Have Tried Everything from the Peninsula — And Everything Has Failed

We gave Barisan Nasional decades → corruption, kleptocracy, 1MDB.

We gave Pakatan Harapan the “Malaysia Baharu” dream → broken promises, nepotism , Sam Sterling , Surat Sokongan

We even gave Perikatan Nasional a chance → green-wave Extremism , Racism , Jana Wibawa , Menantu Lari and Economic Stagnation.

All three experiments from Peninsular Malaysia have failed miserably.

Two Different Malaysias — Two Different Futures

Peninsular Malaysia

Obsessed with moral policing, dress codes, khat, Jawi, signboard languages, halal/haram debates

Leaders who exploit race and religion to hide corruption

Victim mentality, tongkat culture, blaming others, dengki towards success

Creating imaginary enemies while the economy stagnates and talent flees

A regressive “cave mentality” even in the middle of KL

Sarawak & Sabah

Sarawak recognises UEC and pushes English + Mandarin as global languages

Merit-based scholarships, not race-based quotas

Leaders (Abang Johari, Hajiji, Shafie) talk about enlarging the economic pie for everyone

Focus on green energy, food security, education, sustainable investment

Looking forward, not backward

One side is stuck in the past.

The other side is building the future.

The Future of Malaysia Lies in the Hands of Sabah and Sarawak

You are the true guardians of unity, the last bastion of what it means to be truly Malaysian.

You are the original indigenous peoples of this land — your roots run deeper than anyone else’s. 

Long before others arrived, you were the stewards of this soil.

One day, may our Prime Minister come from Sabah or Sarawak.

If Sabah and Sarawak stand united, you are no longer just kingmakers — You can be the architects of Malaysia’s renaissance.

It is time for Borneo to rise, not just as participants in Malaysia’s story, but as its leaders.

One day, our Prime Minister must come from Sabah or Sarawak.

You have earned that right. 

You have preserved Malaysia’s soul when the peninsula lost its way.

The old chapter “Sabah for Sabahans, Sarawak for Sarawakians” is over.

The new chapter has begun: Borneo for Malaysia.

Seize this moment. Unite. Lead us.

Terima kasih, Sabah.

Thank you, Sarawak.

Thank you, Borneo.

You are our beacon of light.

You are our only hope.