KUALA LUMPUR, Sep 4 — Sarawak has received just RM49 billion in oil royalties over nearly five decades, while national oil company Petroliam Nasional Berhad (Petronas) retained the lion’s share of revenue from the state’s petroleum resources, according to Sarawak’s legal counsel Datuk Seri JC Fong.
The figure, revealed during a recent forum on state rights, underscores growing frustration over what Sarawak officials describe as decades of under-compensation, according to a Daily Dayak report.
“From 1975 until 2024, Sarawak has received approximately RM49 billion in cash payments from Petronas,” Fong was quoted as saying.
“The remaining 95 per cent went to Petronas from the oil and gas resources found in Sarawak.”
According to a report by The Edge, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat in February that Sarawak had received over RM96 billion in financial benefits from its oil and gas industry as of 2024.
This includes RM49 billion in cash payments, RM28.6 billion in dividends from the state’s shareholding in Malaysia LNG Sdn Bhd (MLNG), and RM18.66 billion in sales tax revenue as of Q3 2024.
Fong made the remarks in response to an article on Politikonomi titled ‘The Chinese Fuzhou hidden hands behind Sarawak’s gas aggregator ambition EXPOSED’.
The legal advisor noted that despite Sarawak’s rich oil and gas reserves, the state has received only a fraction of the revenue generated since Malaysia’s formation.
He cited the RM49 billion figure as evidence of systemic imbalance, noting that Petronas has long operated under federal legislation without Sarawak’s consent.
The Sarawak government has since established Petroleum Sarawak Berhad (Petros) to reclaim regulatory control and ensure that future exploration and production activities align with state law.
Fong asserted that Petronas must acknowledge Sarawak’s legal jurisdiction and formally recognise Petros as the sole gas aggregator under the state’s amended Distribution of Gas Ordinance (DGO) 2023.
Fong said that any company seeking to operate in Sarawak’s oil and gas sector must obtain licenses from Petros — not Petronas.
He said that Sarawak had made good use of its modest share of revenues to fund transformative infrastructure, including the Second Trunk Road, coastal highways, iconic bridges, international secondary schools, and upcoming free education initiatives.
“All these initiatives benefit all communities in Sarawak, not just one ethnic group or the political elite,” he said.
He also said Sarawak’s control of gas distribution through Petros is already helping the people directly, including free gas supply for B40 families in Bintulu and Miri — which Petronas did not provide over four decades.
Fong warned that misleading claims against Sarawak’s leadership could harm public trust, which has long enabled Petronas to operate in the state.
“All Sarawakians want is for Petronas to respect state laws, ensure sustainable use of resources, and allocate enough gas to support Sarawak’s Gas Roadmap — which could add RM130 billion annually to the national GDP,” he said.
