KUCHING: Sarawak's legal petition seeking judicial clarity on the constitutional applicability of petroleum-related federal laws is a matter of vital constitutional and economic significance, says a business association.
Expressing its support for the move, the Sarawak Chamber of Commerce and Industry (SCCI) said Sarawak was taking a responsible and orderly approach towards resolving long-standing questions on legislative authority and resource jurisdiction by pursuing an authoritative determination in the Federal Court.
SCCI said the oil and gas sector was a cornerstone of Sarawak's economy and a strategic driver of investment confidence, industrial growth and sustainable development.
"Clear legal delineation is essential to provide the assurance necessary for long-term capital commitments.
"Regulatory certainty directly influences supply chains and job creation. A definitive judicial interpretation will foster a more transparent framework for managing Sarawak’s natural resources," it said in a statement on Friday (Feb 27).
SCCI also emphasised the need for constructive engagement to continue between state and federal authorities.
"This collaboration is vital to ensure that Sarawak’s economic interests are strengthened without compromising the stability of the national investment environment," it said.
On Monday (Feb 23), the Sarawak government filed a petition in the Federal Court to determine the constitutional validity of the Petroleum Development Act 1974, Continental Shelf Act 1966 and Petroleum Mining Act 1966 and whether they continue to apply in Sarawak.
State Deputy Minister in the Sarawak Premier's Department Datuk Sharifah Hasidah Sayeed Aman Ghazali said the petition sought to safeguard Sarawak's rights to offshore petroleum resources within its boundaries and clarify the regulatory framework for the oil and gas industry in the state.
