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KOTA KINABALU: The Federal Government should position the Sabah–Petronas Commercial Collaboration Agreement (CCA) as a pragmatic step that complements the Malaysia Agreement 1963 (MA63) rather than replacing it, said Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud (pic).

Speaking during his official address on Friday, he said the CCA between Sabah and Petronas should be viewed as a complementary mechanism to MA63 rather than a substitute for Sabah’s constitutional rights.

He said the agreement enables Sabah to participate more directly in the oil and gas sector.

Since the agreement was signed in 2021, oil and gas contracts awarded to Sabah-based companies have increased from about RM600 million to nearly RM2 billion.

He added that Sabah has earned more than RM800 million from crude oil sales participation, with over 300 local companies involved as vendors, while stressing that MA63 should strengthen nation-building and that administrative obstacles to the CCA should be avoided.