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, urged Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud.
“The CCA between Sabah and Petronas should be viewed as a complementary mechanism to the Malaysia Agreement 1963 rather than a substitute for Sabah’s constitutional rights,” he said.
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The CCA allows the state to participate more directly in the oil and gas sector. Since the agreement in 2021, Mustapha said oil and gas contracts awarded to Sabah-based companies increased from around RM600 million to nearly RM2 billion.
“Sabah has earned over RM800 million from crude oil sales participation, with more than 300 local companies participating as vendors,” he said.
He noted that it is clear how Sabah’s participation strengthens the federation, while also stressing that administrative obstacles to the CCA should be avoided.
Additionally, Mustapha emphasised that the MA63 is not a political slogan, but a legal document that forms the foundation of Malaysia and recognises Sabah and Sarawak as equal partners, with one of the key issues involving Sabah’s 40pc share of federal revenue as stated in Articles 112C and 112D of the Federal Constitution.
