Will Sabah gain full autonomy over gas sales and new deals?

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Sabah to Gain Regulatory Control Over Gas Supply and New Deals

The federal government has agreed to transfer the regulatory authority for gas supply in Sabah to the state government. This move, which aligns with the federal administration's commitment to upholding the Malaysia Agreement 1963 (MA63), will empower the Sabah government to make decisions regarding the sales and new agreements for gas supply within the state. The finalisation of this transfer is pending the consent of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al Mustafa Billah Shah.
Federal Government Agrees to Transfer Regulatory Power

Prime Minister Datuk Seri Anwar Ibrahim announced that the federal government has reached an agreement to cede the regulatory power for gas supply in Sabah. This decision was made as part of the broader federal government initiative to fulfil the provisions of the Malaysia Agreement 1963 (MA63). The Cabinet has already given its approval for this transfer, which is now awaiting the formal consent of the Yang di-Pertuan Agong.
State Government to Decide on Gas Sales and New Deals

With the transfer of regulatory power, the Sabah state government will assume the authority to determine matters related to the sales and new contracts concerning gas supply. This grants Sabah greater control over its energy resources and commercial agreements, mirroring a similar arrangement that has been in place for Sarawak. The specifics of this handover are expected to be formally communicated following the necessary royal assent.
Precedent Set by Sarawak's Control Over Gas Distribution

The federal government's decision for Sabah follows a precedent established with Sarawak, which has held complete authority over its gas distribution activities since June 1 of the previous year. Sarawak was granted an exemption to operate without a federal permit under the Petroleum Development Act 1974 and a licence under the Supply Control Act 1962, effectively giving it full control over its gas distribution sector. This existing framework in Sarawak provides a clear model for the upcoming transfer of power to Sabah.
Broader MA63 Developments to Be Announced

The Prime Minister also indicated that several other significant issues pertaining to the Malaysia Agreement 1963 have been resolved. Details regarding these developments are slated for announcement early next month, following a month-long review period assigned to Deputy Prime Minister Datuk Seri Fadillah Yusof to address outstanding matters. Issues requiring legislative changes are anticipated to be addressed in the subsequent parliamentary session.

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Will Sabah gain full autonomy over gas sales and new deals?

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