KUCHING: The Sarawak government is prepared to work jointly with the federal government in the promotion and development of the Carbon Capture, Utilisation and Storage (CCUS) industry in the state, but in accordance with the state laws.

State Deputy Minister in the Premier's Department (Law, Malaysia Agreement 1963 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali said this had been agreed to between Prime Minister Datuk Seri Anwar Ibrahim and Premier Tan Sri Abang Johari Openg.

She said the Sarawak government has presented a paper at the National Energy Council on Aug 2, 2024, on its authority over CCUS projects in the state.

"The Sarawak government's position is that all CCUS projects undertaken within the boundaries of Sarawak must be regulated by state laws," Sharifah Hasidah said when responding to Economy Minister Rafizi Ramli's press statement issued yesterday.

She said the paper was received without objection by members of the council.

Sharifah Hasidah said the state government is surprised by the statement that there are issues relating to the boundaries between the federal and state government with reference to the Continental Shelf Act 1966, the Exclusive Economic Zone Act 1984 and the Territorial Sea Act 2012.

She said the statement alleged that discussion on different interpretations of boundaries between the federal government and the Sarawak government) is ongoing.

"The Sarawak government states categorically that the boundaries of Sarawak were not a subject matter under discussion through the MA63 platform.

"The boundaries, including the continental shelf, its right therein, cannot be subject to any negotiation," she said.

She said this had been made absolutely clear by Sarawak's premier at the first Steering Committee Meeting on the Implementation of Malaysia Agreement 1963 on Dec 17, 2018.

"The boundaries of Sarawak were extended by the Sarawak (Alteration of Boundaries) Order 1954 to include the area of the continental shelf being the seabed and its subsoil which lies beneath the high seas contiguous to the territorial waters of Sarawak.

"The continental shelf and the seabed and subsoil thereof falls within the definition of "state land" under section 2 of the Land Code and is under the control of the Sarawak government by virtue of section 12 thereof," she said.

Sharifah Hasidah said the continental shelf within the boundaries of Sarawak is therefore part of the territory of Sarawak.

She said that Article 1(3) of the Federal Constitution states that the territory of Sarawak is the territory comprised therein before Malaysia Day.

She said that the continental shelf is part of Sarawak's territory after Malaysia Day, and any law passed by the State Legislature by reason of Article 73(b) applies to the continental shelf within the boundaries of Sarawak.

Sharifah Hasidah said that carbon storage involves the use and occupation of state land and therefore must be regulated according to state laws.

She said that Rafizi's statement sought to interpret the boundaries of Sarawak with reference to only three Acts of Parliament, but failed to consider at all the Sarawak (Alteration of Boundaries) Order 1954 and the Land Code as well as Article 1(3) of the Federal Constitution.

"These laws are clear and unambiguous and leave no room for different interpretations.

"The Continental Shelf Act 1966 was extended to Sarawak vide the Emergency Essential Powers Ordinance No. 10, 1969," she said, adding that the Emergency Ordinance had lapsed under Article 150(7) of the Federal Constitution.

"Therefore, this Act no longer applies to Sarawak. Even if this Act is still applicable in Sarawak, the definition of "continental shelf" in this Act clearly states that the continental shelf shall not affect the territory of the states or the limits of territorial waters of the states and the rights and powers of the State Authorities therein.

"Therefore, the Continental Shelf Act 1966 does not affect the territory of Sarawak and the rights and powers of the Sarawak government over that part of the continental shelf which lies within the boundaries of Sarawak," Sharifah Hasidah said.

She said the state government has informed the Ministry of Economy that the proposed CCUS Bill should not apply to Sarawak.

In a statement yesterday, Rafizi said discussion on the different interpretation of boundaries between the federal government and the Sarawak state government is ongoing.

He said his ministry will keep abreast of its progress to ensure the CCUS legislation reflects the understanding reached.

He added that his ministry, in developing the CCUS framework for Malaysia, will be guided and bound by the Attorney-General Chamber's advice including on issues related to the interpretation of boundaries between Federal and state that has been outlined in the Continental Shelf Act (1966), Exclusive Economic Zone Act (1984) and Territorial Sea Act (2012).

https://www.nst.com.my/news/nation/2024/08/1088587/sarawak-ready-work-putrajaya-promoting-and-developing-ccus-industry