As of today Sarawakians
are still very much in the dark as to the progress and status of the negotiation
of devolution of power announced during the DUN winding speech.
Tok Nan’s winding speech
on the 30th Novermber, 2016, amongst other thing touched on the
following.
DEVOLUTION OF POWER
As early as the 16th of
March 2014, two weeks
after To Nan was appointed as Sarawak Chief Minister, he had emphasised that Sarawak's relationship with the Federal Government must be constitutionally correct.
When asked by the reporter from the Star, on what
is Sarawak’s position with regard to Sarawak’s relationship with Kuala Lumpur and Tok Nan said that it must be constitutionally correct.
By that he meant, in order to achieve it, the Sarawak
Government at the State Legislative Assembly sitting on the 8th December 2015
had sought and was given a mandate for the State Government to safeguard the constitutional rights and
protection of the State in the interest of all Sarawakians.
The mandate given covered
the aspirations of the people of Sarawak from the
days before the formation of Malaysia as stipulated in the Cobbold Commission Report,
Inter- Governmental Committee Report and Malaysia Agreement and Malaysia Act.
Pursuant to this, the
Government through its officials has actively and carefully planned a
structured course of action toward achieving the following objectives.
Recently, Sarawak state Government sent its minister, officers and representative to
get a closer look at the authentic documents related an agreement that lead to
the formation of Malaysia.
The course of action
involves three phases namely;
(a) Administrative
empowerment;
(b) Encroachment of
State's rights; and
(c) Oil and Gas Royalty.
On 21st January
2016, Tok Nan had
announced 13 provisions of administrative empowerment to be delegated to the
State Government which were agreed upon during my meeting with the Right
Honourable Prime Minister.
The 13 provisions of administrative empowerment drawn by him were as follows:-
(a)
Sarawak Legal
Officers are to be authorised by the Public Prosecutor under the Criminal Procedure
Code to conduct prosecution for offences under the State Ordinances from the
stage a person is charged in the lower court until the appeal stage. According
to the Constitution, only the Federal Attorney General had the power to
prosecute under any law. So he must delegate this power to State Officers. So
we have now the power to prosecute under State Ordinances by our own officers.
In
light of the recent Devolution of Power exercise agreed between the Federal and
State Governments, several officers of the State Attorney-General's Chambers
have on 1st March 2016
been appointed as Deputy Public Prosecutors.
Since
then a total of sixteen (16) forest cases have been approved for prosecution.
Ten (10) cases have been duly charged in Court with four (4) cases have been
successfully prosecuted and the remaining six (6) cases are pending for trial.
Another six (6) cases are pending for charges to be filed in Court.
Following
the successful prosecutions, a total amount of RM77,719.60 in compensation was
ordered by the Court to be paid to the State Government. This amount is over
and above the fine imposed by the Court.
(b) It is
agreed for the Delegation of Power to the State officers to represent the
Public Service Commission and the Education Service Commission in the
appointment of officers to the Federal Civil Service, including teaching and
medical services. This is another delegation of power by the Federal
authorities to the State authorities;
(c) Posts
in Sarawak Immigration Department will be increased to improve the enforcement
functions in the State with an increase of 100 new posts, with full deployment
by the end of next month. As of today, out of 100 new posts, 99 posts have been
filled. That means we do not have to appeal to the Federal authority every time
we need a new post. We can do it on our own.
(d) The
ratio of Sarawak-born teachers serving in Sarawak will be increased to 90% of the total number of teachers in Sarawak by 2018. To ensure that this target is achieved, temporary teachers
from the open market will be considered from time to time and obtain their
Diploma in Education while teaching. As of today, out of the total number of
42,235 teachers in Sarawak, 37,921 of them are Sarawak-born teachers which is
about 89.8% of the total number of teachers in Sarawak;
(e) Traffic
warden power for Sarawak Local Authorities will be given to the Miri City
Council, apart from Kuching North City Hall and Kuching South City Council;
(f) The
Sarawak State Government will be consulted before an application for a Deep Sea
Fishing Permit is forwarded to the Deep Sea Permit Evaluation Committee for
consideration. The Ministry of Agriculture and Rural Economy is the
representative of the State Government in the Deep Sea Permit Evaluation Committee;
(g) The
Sarawak State Government will be consulted in the drafting of Federal
legislation which has bearing or impact to the Sarawak State Government, where
provided by law. In this respect, the State Government was consulted for
example amongst others with regard to the Integrated Water Resources Management
Bill and Amendment to the Gas Supply Act 2016;
(h) The
planning of Federal development projects in Sarawak will be based on the priorities and strategic thrusts of the State
Five-Year Development Plan. Implementation of the projects will be referred by
the Federal Ministries to the State Government such as in determining the
location of schools, hospitals and other development projects. This initiative
is now being implemented;
(i) The Higher
Education Ministry will take necessary measures to increase the number of
student enrolment from amongst Sarawakians with medical degree programmes in
public universities. In this respect, of late I have learned that the Federal
Higher Education Ministry following the steps taken for Sarawak will eventually recognise the United Examination Certificate on two
conditions, the teaching of Bahasa Malaysia at SPM level and History Malaysia instead of History of some other country within
the curriculum. So, this matter will be considered but we in Sarawak are the first to recognise UEC. So we hope that the Federal
Government will also follow suit. Sarawakian will be given a greater
opportunity to enter foundation studies programmes in UNIMAS. In this respect,
UNIMAS has been empowered to manage the intake of medical students to allocate
the quota of 80% for Sarawak born students;
(j) It is
agreed that relevant areas that can be delegated will be identified for
delegation of power of the Director General under Section 49 of the
Environmental Quality Act 1974 to the State officers or departments. Both the
State and Federal Governments have agreed on the matters to be delegated and
are now in an advanced stage of such empowerment;
(k) Development
of housing projects in Sarawak is to be implemented through a Joint Committee
Meeting to ensure that State agencies are fully involved in the planning,
implementation and monitoring aspects of these projects in Sarawak;
(l) It is
agreed that the development of sports in Sarawak is jointly managed with the State Government. The Federal Youth and
Sports Ministry is also in the process of enhancing the Sports Development Act,
1997 which is expected to be completed by the end of the year. Certain aspect
of the Sport Development Act, 1997 is under review by the parties to look into
the possibilities of enhancing the involvement of the State Government
including the organisation of international/national sporting events; and
(m) It is
agreed that the Sarawak Government will carry out all functions under the
Social Welfare Department. All posts will be transferred to State Civil
Service. The Federal Government will contribute 50% of the total costs incurred
as decided by the National Finance Council. In this regard, the State Cabinet
will be deliberating and making a decision on the terms and conditions of these
initiatives in the coming months. These 13 provisions of administrative
empowerment are progressively fulfilled by the Federal Government and we will
continue to seek more empowerment to the State which can bring better benefits
including areas related to tourism and education. The second phase involves the
priorities subject matter relating to:-
(a)
Finance
(i) Financial Review under
Article 112D of the Federal Constitution;
(ii) Import Duty and Excise Duty on Petroleum
Products; and
(iii) Federal Financial Obligation for Expenditure
in Concurrent List.
(b) Oil Exploration, Mining and Gas
(i)
Minerals, Oil and Oilfields; and
(ii)
Distribution of Gas.
(c) Land
and Revenue from Land Stamp Duties Chargeable on Instruments Prescribed by the
Land Code for Transfer, Charge and Sublease ought to be returned to Sarawak. These issues are at an advanced stage of negotiation by the State
and Federal officers in the Technical Committee set up to look into these
priorities issues. Negotiations are on-going with the relevant parties. As the
negotiations have yet to be finalised, the details of this meetings cannot be
made public as yet. However, I wish to inform this august House that the next
meeting of the Technical Committee will be held tomorrow, 1st December
2016. Matters not in the
priority list will be dealt with after the issues in the priority list have
been dealt with.
Tok Nan’s winding speech
also include the much debated and speculated issues amongst Sarawakian and
Sabahan, - “UPDATE ON THE OIL ROYALTY NEGOTIATION”
He told the August House that the oil market has
shown signs that are heading towards a more balance situation, despite
continuing volatility and challenges. The World Bank’s Commodity Markets
Outlook, October 2016 projected crude oil prices are to average at USD43 per
barrel in 2016, a decline of 15% from the previous year (2015), and average at
USD55 per barrel in 2017.
However, the forecast
assumes OPEC will succeed in limiting global production, and that U.S. production will flatten out next year.
Despite the uncertainty in
the oil market, the States’ negotiation on the request for the increase of oil
royalty from 5% to 20% with the Federal Government and PETRONAS will continue.
Sadly, today, 242
days (2/3 of a year) after Tok Nan’s
last winding speech in the Sarawak DUN,
no conclusion has been reached on the rate of Petroleum Royalty that
Sarawak State will get from Petronas is announced.
The DUN was also told that
some progress in five key areas of negotiation with PETRONAS has been made
namely,
(a) Natural Gas Supply for
both Power and Non-Power Sectors;
(b) Equity and Royalty;
(c) Contracts and Business Opportunities;
(d) Corporate Social Responsibility; and
(e) Human Resource, Education and Technical Trainings.
On the natural gas supply,
Tok Nan also announced that PETRONAS has signed five agreements to support the development of
power and petrochemical industry in the State, namely,
(a) Principle Agreement
with the Government of Sarawak on the Supply of 450 million standard cubic feet
per day of natural gas for the power and non-power sectors in the State of
Sarawak on 3rd April 2016;
(b) Gas Sales Agreement with
Sarawak Energy Berhad to supply 100 million standard cubic feet per day of
natural gas for Tanjung Kidurong Power Plant on 3rd April 2016;
(c) Memorandum of
Understanding with the Government of Sarawak to conduct a Joint Study for
Sarawak Petrochemical Master Plan on 3rdApril 2016;
(d) Heads of Agreement
with HUCHEMS for the supply of 58 million standard cubic feet per day of
natural gas to HUCHEMS' petrochemical complex on 11th November 2016; and
(e) Memorandum of
Understanding with Yayasan Hartanah Bumiputera Sarawak to jointly conduct a
Pre-Feasibility Study for a Proposed Methanol Plant Project in Bintulu on 11th November
2016.
Through these agreements,
PETRONAS has committed to supply 450 million standard cubic feet per day of
natural gas to Sarawak for the power and non-power sectors development in
the State.
According to him, Sarawak State will continue to negotiate for the supply of more natural gas from
PETRONAS for our downstream activities.
The availability of
natural gas in Sarawak will attract more petrochemical industries to
invest especially in Bintulu that will support states’ industrialisation
strategy to transform Bintulu to be the leading petrochemical hub in Malaysia and believe that the Sarawak Petrochemical Master
Plan will also help the strate to develop its petrochemical industries in a
strategic manner.
In his DUN winding speech
Tok Nan also inform the members of the House that the number of Sarawak
licensed of registered companies with PETRONAS have increased from 314 to 396
in 2016 and will continue to negotiate with PETRONAS to enhance the
participation of Sarawak companies in oil and gas industry and pursuing to have
more contracts to be given to our Sarawak companies.
In the same speech, Tok Nan said PETRONAS
has committed a baseline value of RM2.1 billion worth of contracts annually to
be awarded to Sarawak companies. Since 2013, PETRONAS has already spent
RM14.8 billion worth of contracts for Sarawak
companies.
He also told the August House that the State
Government is also in active discussion with PETRONAS on the details of
Shareholders Agreements on the 10% equity in the MLNG Plant Train 9.
Despite being in active discussion mode
assurance on the details of Shareholders Agreements on the 10% equity in the
MLNG Plant Train 9, today no conclusive
agreement had been reached but surprisingly PETRONAS on Wednesday 26 July, 2017
had reached an agreement to dispose of 10% of its shares and interest in the
Bintulu MLNG Plant Train 9 for RM2.14
Billion to PTT (Thailand) on the same week it sends the first LNG delivery to
the same Company which it believes was made to boost LNG market in
Thailand.
Today, if the deal is to proceed, the share equity of the Bintulu MLNG Plant Train
9 would be :
PETRONAS - 80%,
JX Nippon - 10% and
PTT Thailand - 10%.
There is no official announcement been
made by the Sarawak State Government on the disposal of 10% equity in the Bintulu MLNG Train
9 Plant by Petronas.
I am of the opinion that the sale
of the above 10% equity in the Bintulu
MLNG Train 9 Plant is not independent of the supply of LNG from the Gas field
located off the coast of Bintulu, the ownership of which is the State
Government of Sarawak. In such a circumstance PETRONAS should have consulted
the Sarawak State Government before disposing its state to a foreign entity.
Without consultation by PETRONAS, Sarawak is merely a by stander, while equity
changed hand to foreign entity that involved the States’ Bintulu LNG Assets.
By letting such action to proceed
without any consultation with the State Government, it can be construed that Sarawak Government
is deemed to agree to the notion that the states’ LNG Asset that supplied the
MLNG Train 9 Plant with the LNG does not belong to the Sarawak State
government.
Sarawak State Government just cannot let this suspicious act to happen if it
wants the state to have better involvement and economic return from its LNG
Assets. What just had happened is a
regression of what Tok Nan had precisely emphasized during his last DUN winding
up speech in December, 2016.
Tok Nan also said that the
state is also working with PETRONAS for more equity in MLNG 2 Plant. Before the
state would get any thing right, PETRONAS has just ceased the first opportunity
from the state and Sarawakians at large.
He also said that the “State’s
equity in MLNG projects is the state’s privilege as not anybody can participate
in the projects”. This statement qualifies that no shares or involvement of
other party can be tolerated as it is the state’s privilege.
The state government is
not doing enough to protect the state’s right, particularly those that had been
passed during the last DUN meeting. The current administration under YAB
KM Datuk Abang Johari has repeatedly on
may occasions, making assurance that he
will carry on with what Tok Nan has put
in the pipeline, particularly those that involve state’s oil and gas, but what
had happened during the past 242 days seems to go not in accordance to it.
For Corporate Social
Responsibility, PETRONAS is committed to spend RM50 million over 5 years from
2015 until 2019 for 10 projects.
Currently eight (8)
projects have started and are ongoing namely the Development of
Community Centre,
Sarawak Regatta,
Contribution to NGOs,
Mobile CSR,
Penan Pre-School,
Emergency Aids and
PETRONAS Marine Conservation.
Another two (2) projects
will start soon namely
PETROSAINS,
Play smart and Rest and
Recreation Areas.
In the area of human
resource, education and technical trainings, PETRONAS will continue to intensify
education and human capital development efforts in Sarawak. PETRONAS is expected to spend RM465 million, exceeding the budget of
RM420 meant for 5 years from 2015 until 2019 on:
(a) Capital expenditure
for the construction of new MRSM Bintulu;
(b) Implementation of
Asrama Desa projects; and
(c) Educational sponsors
and building capacity for students.
The following are PETRONAS
contribution in education and human capital development:
(a) 680 students sponsored
under PETRONAS Education Sponsorship Program to pursue tertiary education in
2003;
(b) 1,054 students
sponsored under Program Sentuhan Ilmu PETRONAS to drive academic excellence;
(c) 1,008 trainees given
the technical skill training support under PETRONAS VISTA;
(d) 47 students participated
in Graduate Employment;
(e) 687 students graduated
from University Teknologi;
(f) 1,945 trainees
sponsored at Institut Teknologi Petroleum; and
(g) 95 students sponsored
at Akademi Laut Malaysia.
Currently there are 3,880
Sarawakians or 75% of the total workforce being employed by PETRONAS for its Sarawak operation covering both upstream and downstream including senior
positions.
However, after our
negotiation with PETRONAS to increase the number of Sarawakians working with
PETRONAS, they have charted a Roadmap to recruit and develop more Sarawakians
to achieve the targeted job level of 85% for Sarawakians by 2020.
The Localisation Plan was
developed to increase the numbers of qualified Sarawakians in PETRONAS through
Structured Succession Planning and New Recruitment through advertisement.
The Structured Succession
Planning of Sarawakians filling up positions on Non-Sarawakians is on-going
since September 2016. For the new recruitment, 192 vacancies (meant for
Sarawakians) were advertised in the local papers
Utusan Borneo, Borneo Post
and New Sarawak Tribune etc
As of 8th November,
PETRONAS has received 10,000 applications (including non-Sarawakians) and
shortlisting is in process.
Efforts are also in place
to further up skill and create future qualified Sarawakians leaders.
Placement of Sarawakians
at Universiti Teknologi PETRONAS and Institut Teknologi Program PETRONAS will
continue to be done based on merit.
PETRONAS will continue to
expand outreach programme to encourage more Sarawakian students to enrol in the
University.
PETRONAS will also
continue to support technical training programmes in Sarawak via PETRONAS
Vocational Institution Sponsorship and Training Assistance Programme which
include the funding of technical programmes, consumable and Training of
Trainers as well as sponsorship of trainees.”
The current state administration
MUST make official public statement and or announcement as to what extent the
state government and the Federal government and PETRONAS has delivered,
achieved eversince Tok Nan’s last
announced in the September 30th 2016 DUN sitting.
