KUALA LUMPUR (Aug 9): The Sarawak government said that although it plans to work closely with the federal government on developing the carbon capture, utilisation and storage (CCUS) industry, the proposed CCUS Bill does not apply to Sarawak.

"The Sarawak government has informed the Ministry of Economy that the proposed CCUS Bill should not apply to Sarawak," it said in a statement Thursday.

The Sarawak government was responding to a recent statement by Economy Minister Rafizi Ramli where he claimed there were 'issues' linked to the interpretation of federal and state boundaries in drafting the framework for the CCUS industry.

In a statement, Deputy Minister in the Premier's Department Datuk Sharifah Hasidah Sayeed Aman Ghazali said Sarawak has categorically stated that the boundaries of Sarawak were not a subject matter under discussion during Malaysia Agreement (MA63) talks.

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

"This has been made absolutely clear by the premier at the first steering committee meeting on the implementation of MA63 on Dec 17, 2018," said the deputy minister, who is in charge of law, MA63 and state-federal relations.

The statement further read that 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 state’s territory.

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, she said, 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.

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.

https://www.theedgemarkets.com/node/722233