11 February 2025

Federal Court’s 5pct tax ruling proves Sarawak’s rights—Chong should fight Putrajaya, not GPS

Federal Court’s 5pct tax ruling proves Sarawak’s rights—Chong should fight Putrajaya, not GPS



Dato Lo Khere Chiang

By DayakDaily Team

KUCHING, Feb 11: The Federal Court’s 2020 ruling upholding Sarawak’s authority to impose a five per cent sales tax on petroleum products under the Sarawak Sales Tax Ordinance and Oil Mining Ordinance 1958 (OMO58) reinforces the State’s fiscal control over its resources while ensuring stability in the oil and gas sector.

Batu Kitang assemblyman Dato Lo Khere Chiang highlighted this in response to Democratic Action Party (DAP) Sarawak chairman Chong Chieng Jen’s recent remarks demanding transparency on deals between Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg and Prime Minister Datuk Seri Anwar Ibrahim on the matter.

“Let’s be clear. The issue is not GPS (Gabungan Parti Sarawak) or Abang Johari—it is Putrajaya’s reluctance to acknowledge Sarawak’s rights over its resources. Sarawak has never sought to disrupt existing contracts with PETRONAS or international investors. 

“The GPS government has consistently asserted that Sarawak’s authority over its oil and gas remains intact, despite the Petroleum Development Act 1974 (PDA74). We understand the need for PDA74 to coexist with OMO58 to ensure stability in existing contracts between PETRONAS and international companies,” he said in a statement today.

Criticising DAP Sarawak for its repeated accusations, Lo urged the party to stop blaming GPS leaders for decisions made during the Barisan Nasional (BN) era.

“How old were most of the present GPS leaders when PDA74 was passed? Some were young politicians, while others were just kids. What could they have done at the time?

“History cannot be changed, but the future can be fought for—and that is exactly what GPS is doing today. Abang Johari and GPS have remained steadfast in defending Sarawak’s rights,” he stressed.

If Chong believes Sarawak’s resources are at risk due to Putrajaya’s continued resistance to the State’s push for greater control, Lo reminded him that he holds a unique position to defend Sarawak’s interests with direct access to key decision-makers in Putrajaya. 

“Chong is not just any politician—he is a federal MP, a senior member of Anwar’s Pakatan Harapan (PH), and part of the unity government. Yet, instead of using this platform to advocate for Sarawak’s rights, he seems more focused on criticising Abang Johari and GPS—the very leaders negotiating a stronger position for Sarawak.

“By taking this approach, Chong risks weakening Sarawak’s bargaining power. If he is truly committed to defending Sarawak’s interests, why not leverage his federal influence to advance Sarawak’s case? Why not push for meaningful dialogue to secure Sarawak’s rightful stake in its own resources, rather than undermining those actively working toward that goal?” Lo questioned.

He stressed that now, more than ever, Chong should stand with GPS and Abang Johari—not against them. As a lawyer and politician, Chong has the expertise and platform to advocate for Sarawak’s rights at the federal level.

Instead of deepening political divisions, Lo urged Chong to help strengthen Sarawak’s position, warning that continued criticism of GPS at this juncture risks giving Putrajaya an upper hand in negotiations.

He reiterated that Abang Johari has been firm on Sarawak’s role as the sole gas aggregator, with the Sarawak government issuing formal statements to reinforce this position. However, he noted that challenges remain.

While the path to securing greater control over Sarawak’s resources is complex, Lo emphasised that sustained unity among Sarawakian leaders is crucial.

“Now is the time for unity. Every Sarawakian leader, regardless of political affiliation, must set aside party politics and work together to protect Sarawak’s interests.

“This is bigger than political rivalry—this is about Sarawak’s future. Do the right thing—stand with GPS. Stand with Sarawak,” he urged. — DayakDaily

https://dayakdaily.com/federal-courts-5pct-tax-ruling-proves-sarawaks-rights-chong-should-fight-putrajaya-not-gps/

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