Excerpts of winding-up speech by Chief Minister Datuk Patinggi Abang Johari Tun Openg at the 18th Meeting of Dewan Undangan Negeri, yesterday.
Tuan Speaker
Sarawak rights and strategic interests
I am speaking to all the Honourable Members of this August House with great pride in my heart, because the time is now, for us, as Anak Sarawak, to come out front and defend our inalienable rights in determining the fate of our beloved homeland Sarawak. We must fight hard, with great courage and wisdom.
We have now come to know that we have enemies from among our so-called “friends” out there who have been quietly undermining our resources right under our noses and belittling us by saying that we do not know how to govern ourselves. To these so-called “friends”, I would be like to reassure them that we Sarawakians are capable of governing ourselves and we shall be happy if there will be no unnecessary obstacles to our efforts in asserting our rights to autonomy and self-government.
Asserting Sarawak’s autonomy
The Proclamation of Independence for Sarawak, read by the first Chief Minister, Tan Sri Datuk Amar Stephen Kalong Ningkan on, Malaysia Day, the 16th September, 1963, contained the following words:
“Whereas one of the nine Cardinal Principles of the Rule of the English Rajahs was that the goal of self-government shall always be kept in mind and that the people of Sarawak shall be entrusted in due course with the Governance of themselves: And Whereas this principle accords with the policy which Her Majesty’s Government of the United Kingdom and Northern Ireland have always pursued in the Governance of those territories of the Commonwealth for those affairs Her Majesty’s Government have been responsible: And Whereas in pursuance of this principle Her Majesty’s Government by an agreement entered into on the 9th day of July, 1963, with the Government of the Federation of Malaya, the Government of the State of Singapore and the Governments of the Colonies of Sarawak and North Borneo it was agreed that the State of Singapore and the Colonies of Sarawak and North Borneo shall be federated with the Federation of Malaya, and that the said Federation shall be known as Malaysia.”
Therefore, it is a historical fact that both the Rajahs and the British Government agreed Sarawak was to be granted independence in fulfilment of one of cardinal principles laid down during the reign of the Rajahs that the people of Sarawak shall be entrusted with the Governance of themselves.
In pursuance of this cardinal principle, the British Government granted Sarawak self-government on 22 July, 1963 when Sarawak had its own Chief Minister and a Cabinet system of Government like any other sovereign country having a democratic form of Government.
Sarawak was, therefore, already a self-governing country before Malaysia Day on 16th September, 1963. This important fact distinguished Sarawak from the other States of the Federation of Malaya.
The Malaysia Agreement, which the representatives of Sarawak signed on 9th July, 1963, reinforced this principle by according Sarawak and Sabah greater legislative and financial autonomy and more sources of revenues, greater control of her natural resources, including those found in the Continental Shelf, than the other Malayan States, through the following measures:
(a) As a condition precedent for the coming into force of provisions of MA 63, the Malayan Parliament is to pass a law to amend the Immigration Ordinance 1959 to incorporate the rights of Sarawak and Sabah to have absolute control and authority over the entry into, and residence of persons not of Sarawak origin, in our State, and this right was also to be embedded in the Federal Constitution and cannot be taken away without the concurrence of the State Authority;
(b) The enactment of the Malaysia Act 1963 by the Malayan Parliament to: (i) amend Article 1 of the Malaya Constitution whereby the new Federation of Malaysia shall comprise the States of Malaya, the Borneo States of Sabah and Sarawak and Singapore; (ii) provide for special constitutional safeguards of the special interests rights and position of the States of Sabah and Sarawak; (iii) providing for greater legislative authorities for Sabah and Sarawak in List IIA (State List) and List IIIA (Concurrent List) in the Ninth Schedule of the Constitution of Malaysia; (iv) assigning additional sources of revenues to Sabah and Sarawak and special grants in the Tenth Schedule with additional borrowing and taxing powers such as the imposition of State Sales Tax.
(c) the implementation of the recommendations for safeguarding the special interests and position of Sarawak and Sabah contained in the Inter-Governmental Committee Report, 1962 which have not been incorporated into the Federal Constitution by way of executive, legislative actions to be undertaken by the Governments of the Federation of Malaya, Sabah and Sarawak.
Fifty-five years after the formation of Malaysia, a review of the implementation of MA 63 is timely. Over the last five and half decades, socio-economic conditions have changed, the aspirations and expectations of the people of the State the development and progress of the State have risen – they want better government delivery systems and services, better infrastructures, education and health services, more employment and business opportunities and a better future for coming generations of Sarawakians.
Hence, the State Government agree that the implementation of MA 63 should be reviewed by a Committee akin to the Inter-Governmental Committee and I am pleased that this August House has on 6th November passed a Motion which supports the State Government stand on this important issue.
Whilst supporting the review of MA 63, the State Government will ensure that those special rights for Sarawak entrenched in the Federal Constitution in accordance with the MA 63, must not be affected in anyway.
I would await the views and proposals from the Consultative Committee, established by this August House, on:
(a) What have been the breaches or non compliance with the terms of MA 63 and the constitutional safeguards of the special rights, interest and position of Sarawak and how these should be remedied by the Federal Government;
(b) Whether the performance of the Federal Government in regard to subject matters, which under MA 63 and the IGC Report, are placed under the Federal Legislative List and over which they have executive authority, have satisfied the expectations and aspirations of Sarawakians, and if not, what measures must be taken to address such unsatisfactory performance, including, but not limited to, the transfer of executive authority under Articles 80(4) and (6) and Article 95C(1)(b) of the Federal Constitution over these subject-matters to the State Government.
I wish to assure the people of Sarawak that I and the State GPS Government will unreservedly defend, protect and reclaim the rights belonging to the State as agreed in MA 63 and the constitutional instruments annexed thereto. We will ensure that Sarawak continues to have, and be accorded the level of executive, legislative, administrative and financial autonomy that will fulfil the principle that we, the people of Sarawak would be able to govern ourselves so that Sarawak will be a strong, vibrant and progressive partner in the Federation and capable of making positive contributions towards the economic well-being, progress, stability and unity of Malaysia.
Desire for Sarawak autonomy
Our desire for Sarawak autonomy is not a knee-jerk reaction but a long and deep-seated emotion built over the last 55 years, as we Sarawakians begin to see the great disparity in the development of Sarawak when compared to the other side of Malaysia.
We realise that this disparity has been created as a result of a national policy that is Putrajaya-centric which puts Sarawak as a peripheral to mainstream Malaysian politics and economics, while tapping into our natural resources.
We are unhappy that the Federal Parliament can pass laws which erode the power and rights of Sarawak. We are unhappy that the Federal Government has failed us in the delivery of services to our people, particularly in basic infrastructure, education and public healthcare. It is the infringement into our inalienable rights of our homeland Sarawak and the inadequate provision for the needs of our people that compel this Government, and I must say, even the whole of this August House, to work in concert of correcting the wrong that has been done to us Sarawakians.
When the Federal Government has failed to deliver satisfactorily the services that they have promised us, what can we do? We have pleaded with them, but failed. They have used all kinds of excuses to justify their poor actions. They have used all kinds of administrative tricks to delay the disbursement of funds to Sarawak and caused us to have insufficient time to complete our projects, and then used that as another excuse for giving us lower allocations.
Against all these forms of political and administrative sabotage, invisible but real, Sarawak has no choice but to challenge them to do the right things, and then to do what we think is fair and due to us.
I wish to reiterate here that in seeking autonomy, Sarawak is not seeking to leave Malaysia. Sarawak will continue to coexist and cooperate with Malaya and Sabah under the umbrella of Malaysia. We are happy to be in Malaysia. What we are not happy about is the nature of our current relationship which we feel has deviated from the original spirit of the agreement to form Malaysia as encapsulated in the Malaysia Agreement of 1963. We wish for a real positive dialogue and resolution of our discontent.
I am glad that with the passing of the motion in this August House on the establishment of a Consultative Committee, it will provide us the platform to present our submissions on the Malaysia Agreement 1963 to the Steering Committee formed by the Federal Government. The Consultative Committee is important because it is the think tank for the Sarawak representatives to MA 63 Steering Committee, the mouthpiece as well as champions for the people of Sarawak.
Increasing Sarawakian population
It is therefore in no small regard that I have proposed the encouragement of Sarawakians to have more Sarawak babies, whether at home or abroad, so that we have many more strong and clever Anak Sarawak to defend our homeland. It is our strategic national interest that we encourage the growth of the population of Sarawakians in Sarawak. I have also announced the RM1,000 endowment fund for every Sarawakian born, regardless of ethnicity, religion and social status, as of the first day of next year in be invested in a fund and the amount can only be taken on their 18th birthday firstly for their education and ultimately we hope will encourage the increase the birth rate of Sarawak.
Economics of oil and gas from Sarawak perspective
On the imposition of State Sales Tax on petroleum products, I would like to thank the Federal leaders on their views. I respect their views and concerns. However, as I have mentioned several times, the imposition of sales tax is the State legitimate power as enshrined under the Federal Constitution. Therefore, this decision ought to be respected.
Revenue contribution from oil and gas to state government
In the case of the State of Sarawak, the only revenue contribution from oil and gas is a mere 5 percent royalty and dividend from our investments in MLNG. Over the past 42 years, revenue from the 5 percent royalty to the State amounts to only RM33.5 billion.
This quantum of revenue from oil and gas is rather insignificant as compared to the financial benefits received by the Federal government. As such, we have not been able to enjoy fully the benefits from oil and gas resources extracted from our land.
At this juncture, it has to be noted that last week it was reported that Petronas will give a one-off dividend of RM30 billion from its reserves to the Federal Government. It takes Sarawak 42 years to accumulate RM33.5 billion financial benefits from its oil and gas. What an irony!
Imposition of state sales tax
The State government’s decision to impose 5 percent sales tax on petroleum products is conferred by the Federal Constitution as in Schedule 10, Part V, Section 7. Hence, it is constitutionally legitimate for the State to impose State Sales Tax.
The State Sales Tax Ordinance 1998 allows the State to impose sales tax on goods and services and is applied on sale value.
Under the broad category of taxable petroleum products, the first, being crude petroleum is predominantly exported from the State. For the information of this august House, the crude oil extracted from Sarawak is of premium grade i.e. light and sweet crude which are for export and fetch premium price.
The second major category of the taxable goods is natural gas which is predominantly sold to LNG plants for processing. As for the other categories, namely liquefied natural gas, chemical based fertilisers and gas to liquid products such as kerosene, naphtha, and wax are also mainly for export.
I wish to make a clear and well understood by everyone that any of these petroleum products that are consumed locally are not significant in volume. Furthermore, these petroleum products that are to be sold locally shall be exempted from the sales tax.
The imposition of sales tax on petroleum products is upon careful study and thorough analysis and I would like to give assurance that it will not burden our people as it will have no impact on the cost of living. To the business community, the imposition of sales tax on petroleum products will have no impact on the cost of doing business in Sarawak contrary to the ignorant opinion of some of the Members from Pakatan Harapan.
Let me quote an example, when the sales tax was imposed on crude palm oil and crude palm kernel oil, it did not lead to the increase in the price of cooking oil.
Industry players in oil and gas
For the industry players in the oil and gas related business, the imposition of sales tax is the right of Sarawak that ought to be recognized.
In respect of the concern that the imposition of 5 percent sales tax will impact Petronas financially, the Federal government has the power to review the rate of Petroleum Income Tax on income of Petronas and other players in the industry.
In summary, the imposition of sales tax on petroleum products is on the same basis as that of the Federal government exercising its right on the imposition of Sales and Services Tax (SST) pursuant to Federal Constitution. Our effort to levy on sales tax is also in the same spirit of the Federal government to strengthen financial capacity.
This is more so that Sarawak needs more revenue to enhance its financial capacity to fund all the much long awaited and needed basic infrastructure and amenities for the well-being of our people. We have been deprived from enjoying better quality of life for more than half a century despite the fact that the State of Sarawak is the biggest oil producing State in Malaysia.
What an irony! Therefore, it is time for us to take control of our own destiny and boldly move on with our development agenda.
On state administration and civil service
It has been seen and heard that our so call ‘friends’ on the other side are using scare and fear tactics on the administration of Sarawak by continuously questioning the government and insinuating that the government is corrupt and not transparent.
Making continuous erroneous allegations and insinuation of corruption on me, my Ministers and the State Civil Servants without any proof or substantiation is to create the perception to the public that there is something wrong with the State Government. When they repeat such allegation many times, they are hoping that the people will believe in their stories and will vote against the government. When I took over as the Chief Minister, we had an Integrity Pledge witnessed by Minister in the Prime Minister’s Department and Head of Malaysian Anti-Corruption Commission (MACC).
We are not stupid and do not fear this tactic of the opposition. Ever since (PH) Pakatan Harapan took over the Federal Government they have harboured on corruption as a way to bring down leaders. We are not afraid of such tactics and we are ready to face on any issues that the opposition raised to us without fear or favour.
We are a new GPS (Gabungan Parti Sarawak) Government whose policy is to focus on development both rural and urban and to provide service to the rakyat. We will never err in our objectives and will not fail in our delivery. We will continue to abide to the financial procedures as laid under the law and the financial provisions of Treasury Instruction. Don’t ever question our integrity and our sincerity. If our reserves remain so high, our Stable State Credit Rating are A- by Standard and Poor and A3 by Moody’s Investors Service and we have received Clean Certificates for Public Accounts Management by Auditor General for 16 consecutive years, is that not a good testimony of prudent financial management, good governance and excellent State Administration and Civil Service.
There is no other state in Malaysia or even the Federal Government having recorded such excellent achievement.
To further enhance our excellent achievement and good record of governance I will include The Auditor General to sit in all our project award committee under State Tender Board chaired by The State Financial Secretary. And I will also invite SPRM (Suruhanjaya Pencegahan Rasuah Malaysia) to attend our State Tenders Meetings.
I want to repeat again to the members of the opposition in the August House.
If you wish to challenge us, challenge us with facts and not simply create perception to the public and make character assassination. That is cheap politics. I want to call on all Sarawakians not to fall prey on this cheap politics of the oppositions. Their objectives are to bring down the government using perception and not using facts because they do not have the facts.
Bonus
For the hard work and dedication of the Sarawak Civil Servant throughout the year, I am glad to announce a one and half month bonus of their basic salary or a minimum of RM2,000.00 to be paid by end of December 2018.
Conclusion
This Government of Sarawak shall deliver to the people of Sarawak at all costs and no expense spared. Our people have been left too far behind, and we must catch up. If the Federal Government will not help us, we will help ourselves. How do we fund it? By hook or by crook, as they say in English. I will exhaust all avenues to exercise our rights to deliver to the people of Sarawak.
I must shall a big “thank you” to every Honourable Member of this August House for speaking as one voice on the concerning the Consultative Committee regarding MA 63 when the interests of Sarawak are at stake.
This is a very good sign. Let us therefore in this spirit of Anak Sarawak we conduct our politics and our policies for the betterment of all Sarawakians. We shall debate and fight in policies, but in the end only good policies will prevail to serve the long term interests of Sarawak, regardless of which side of this August House we happen to sit.
Terima kasih Tuan Speaker.
