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Kota Kinabalu — we take notes with concern the recent article “Days of missed chances over under GRS” which paints a glossy, triumphalist picture of Sabah’s oil and gas sector under the Gabungan Rakyat Sabah (GRS) government.
While the numbers highlighted — billions in contracts and hundreds of millions in profits through SMJ Energy — may look impressive on paper, they cannot disguise the fundamental truth: Sabah is still denied its constitutional rights and fair revenue share under the Malaysia Agreement 1963 (MA63).
The GRS government celebrates the Commercial Collaboration Agreement (CCA) with Petronas as if it were a landmark victory. In reality, it was a compromise that entrenched federal control while giving Sabah crumbs in return. Framing this as a “game-changer” is nothing more than political cosmetics designed to mislead the rakyat ahead of the impending state election.
Sabah produces nearly 40% of Malaysia’s oil, yet in 2025 its petroleum royalties amount to only RM1.297 billion out of RM6.445 billion in total state revenue. This glaring imbalance exposes how little Sabahans truly benefit, despite decades of resource extraction. Meanwhile, the government’s much-hyped RM2 billion in OGSE contracts hides another truth: over 70% of these local firms remain inactive, existing more on paper than in real capacity. This is political tokenism, not genuine empowerment.
Furthermore, the constant comparison with Sarawak is both misleading and defeatist. Sarawak’s success did not come from being “115 years ahead” — it came from political courage and insistence on defending its rights. Crucially, Sarawak is already diversifying its economy into hydrogen, renewable energy, and semiconductor industries. Sabah, meanwhile, remains tied down to oil and gas under GRS’ short-sighted policies — and even here, equity without decision-making power is not sovereignty. A 50% stake in Samarang PSC may sound impressive, but Sabah still remains a passive shareholder while Petronas calls the shots.
Sabah’s reliance on inflated oil price forecasts — US$76 per barrel when the global price hovers closer to US$60 — is another reckless gamble. Without fiscal prudence and diversification, budget shortfalls will inevitably hit healthcare, education, and essential services, leaving ordinary Sabahans to bear the burden.
We stresses that true empowerment lies not in subcontracting opportunities tied to Petronas’ approval, but in Sabah regaining full policy control and fair financial autonomy as promised under MA63. Until that is achieved, any attempt to glorify half-measures and compromises is an insult to the intelligence of the Sabah people.
Cosmetic narratives cannot replace constitutional rights. Sabah deserves the full return of its oil and gas revenue, and a bold vision for diversification — not recycled propaganda repackaged as progress. While Sarawak invests in hydrogen and semiconductors, its new engine of growth – not oil and gas. Sabah under GRS is still chained to Petronas’ oil barrels.
Daniel John Jambun
President Change Advocate Movement Sabah (CAMOS)
