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Sabah can’t  be passive in MA63 oil battle: NGO
Published on: Tuesday, March 03, 2026
Published on: Tue, Mar 03, 2026
By: Sherell Jeffrey
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Sabah can’t  be passive in MA63 oil battle: NGO
“The Kuching High Court ruling, which was confined to a contractual bank-guarantee dispute, did not resolve the constitutional questions surrounding petroleum governance and those questions carry direct implications for Sabah,” Daniel said in a statement, here.
Kota Kinabalu: Borneo’s Plight in Malaysia Foundation President Daniel John Jambun urged the Sabah Government to take proactive legal steps to safeguard its constitutional position and resource rights under the Malaysia Agreement 1963 (MA63), as a landmark Sarawak petroleum dispute heads to the Federal Court.

He made the call following the recent Kuching High Court decision involving Petroliam Nasional Berhad and Petroleum Sarawak Berhad, pointing out that Sabah cannot afford to remain a passive observer as the case moves to the apex court.

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“The Kuching High Court ruling, which was confined to a contractual bank-guarantee dispute, did not resolve the constitutional questions surrounding petroleum governance and those questions carry direct implications for Sabah,” Daniel said in a statement, here.

"This is not just a Sarawak issue. It is a Borneo constitutional issue,” he said. 

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He noted that the High Court had indicated that such constitutional matters fall outside the scope of the originating summons before it and are more appropriately determined by the Federal Court of Malaysia. Both Petronas and the Sarawak Government have since moved to place these questions before the apex court.

He said Sabah and Sarawak entered Malaysia as equal Borneo partners under MA63, with specific safeguards over State autonomy and natural resources. 

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“Questions surrounding the continued applicability of Federal petroleum laws to Sarawak raise similar constitutional issues for Sabah.

“The Kuching High Court ruling does not determine ownership or constitutional authority over oil and gas. Those substantive matters remain live and will only be resolved at Federal Court level,” he said.

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He said the Federal Court’s eventual ruling may shape future interpretation of the MA63 safeguards, Federal-State resource governance and the constitutional balance between Putrajaya and the Borneo states, meaning Sabah cannot afford to stand aside while Sarawak charts the legal course alone.

Additionally, he called for calm, respect for judicial process and principled engagement with the courts to ensure that the original Federal compact envisaged in 1963 is upheld in both Sabah and Sarawak.
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