Yap: Chong’s proposal for Sarawak to take 30 pct stake in Petronas ‘makes little sense’, recognition from fed govt more important

KUCHING (Jan 30): The recent proposal by Stampin MP Chong Chieng Jen suggesting that the Sarawak government be granted a 30 per cent equity stake in Petroliam Nasional Berhad (Petronas) “makes little sense”, said Kota Sentosa assemblyman Wilfred Yap.

Yap said while it was understandable that some politicians might seek relevance, such efforts should not come at the expense of sound policy, factual accuracy and responsible governance.

“This proposal, regrettably, makes little sense, much like YB Chong’s earlier statements in the Sarawak State Legislative Assembly made in 2017 claiming that Sarawak would receive 50 per cent of all taxes collected and 20 per cent royalty of oil revenue if Pakatan Harapan were to come to power.

“Those claims were never supported by law, policy framework, or constitutional reality, and to this day remain unfulfilled and unexplained,” he said in a statement.

Yap stressed that Petronas is not an ordinary commercial entity, but a national oil corporation wholly owned by the federal government and established under the Petroleum Development Act 1974.

“Any suggestion to transfer 30 per cent equity is not a simple administrative decision but would require major legislative and structural changes, with far-reaching constitutional, fiscal, and corporate implications. These realities cannot be brushed aside with catchy headlines or populist soundbites,” he said.

According to Yap, the core issue for Sarawak is not symbolic equity participation in Petronas, but the need for clear and unequivocal recognition by the federal government that oil and gas resources found in Sarawak belong to Sarawak.

“That principle goes to the heart of Sarawak’s rights within the Federation and must be addressed honestly, not distracted by impractical proposals,” he said.

He said once ownership is properly recognised, the way forward should focus on pragmatic cooperation between Petronas and Petroleum Sarawak Berhad (Petros) to explore and exploit resources for the mutual benefit of Sarawak and the nation.

“Cooperation, not grandstanding, ensures stability, maximises value, and protects long-term national and state interests,” Yap said.

He also cautioned that a 30 per cent shareholding would not automatically guarantee stable revenue or meaningful control.

“Dividends are not fixed entitlements; they fluctuate based on global energy markets and corporate strategy. Minority equity does not confer control over Petronas’ operations or policy direction,” he said.

Yap urged Chong to revisit the legal and constitutional framework governing Petronas and Sarawak’s resource rights before tabling proposals.

On Jan 29, Chong had proposed that Sarawak be granted a 30 per cent equity stake and board representation in Petronas, arguing that it would be a more constructive solution than ongoing legal disputes between Petronas and Petros.

He made the proposal during the debate on the Motion of Thanks for the Royal Address in Parliament, saying such an arrangement would allow Sarawak to share in Petronas’ future dividends while preserving national interests.

Legal proceedings between Petronas and Petros remain ongoing, despite previous announcements by both the Prime Minister and the Sarawak Premier that a settlement had been reached.