“There must be a way for finding some fair and equitable solution to the problem.
“(Don’t) go as far as to kill the goose that lays the golden egg, because if Petronas makes losses, so will Sarawak,” the former prime minister told FMT.
He said Sarawak should not aim to “take everything” from Petronas. “(That) is not right. Petronas needs Sarawak, and Sarawak needs Petronas.”
On Tuesday, Sarawak premier Abang Johari Openg claimed that a solution had been reached with Putrajaya over the impasse, which Prime Minister Anwar Ibrahim is expected to announce soon.
Muhyiddin hopes that solution will take into account the collective wellbeing of all Malaysians.
“Terengganu, Kedah, Johor, all have their rights. When you run a government, you have to be fair.”
He also warned against putting federal coffers under undue financial pressure.
“It cannot go to the point of bankrupting the federation. None of the states would want that, so we have to be realistic.”
Muhyiddin said Sarawakians are fully aware of the potential impact of their demands. “They know their limits.”
Over the past year, Sarawak has pushed to secure the appointment of Petroleum Sarawak Bhd (Petros) as the sole gas aggregator in the state. Sarawak wants the state-owned oil company to take over control of all pricing, supply and distribution of natural gas in the state from Petronas.
Muhyiddin, however, cautioned that the move could backfire on Sarawak’s economy.
“Sarawak does not undertake upstream exploration and production. They derive yields for those activities from Petronas. Sarawak also holds shares in certain Petronas subsidiaries. So you cannot (kill off Petronas).
“Petronas is investing billions in Sarawak every day to drill (for oil and gas) in the high seas,” Muhyiddin said, adding that the investment was substantial.
“Petronas may show huge revenues, but they are also required to reinvest in larger amounts.
“Petronas doesn’t just operate in Malaysia but in many countries to make up for any shortfall (in revenue). I know this because I was once responsible for Petronas,” the former prime minister said.
Muhyiddin accepts that both Sarawak and Sabah may have certain grievances premised on entitlements they claim to have under the Malaysia Agreement 1963.
“I cannot say whether these new claims are properly made within the context of those agreements. These are matters that must be studied.
“If they were agreed upon, then we must honour that agreement. Then, the issue will revolve around how implementation will take place. That can be discussed and agreed upon,” he said.
Muhyiddin lamented the recent use of threats by certain quarters in Sarawak in an attempt to achieve the state’s aims.
Last month, Stakan assemblyman Hamzah Brahim reportedly warned Putrajaya not to allow Petronas’s “pride and greed” to “contribute to the potential downfall of the Madani government”.
“It is unwise to go to that extent,” said Muhyiddin.
“In the end you have to come to your senses. Be fair and reasonable, not just towards Sarawak, but to Malaysia and, of course, to Petronas.”