By Olivia Miwil
KOTA KINABALU: The government should study the need to establish a Sabah energy sovereignty reserve.
Datuk Dr Mohammad Yusof Apdal (Warisan-Silam) said Sabah and Sarawak are major contributors to the nation's oil revenue, yet storage capacity for emergency use remains limited.
"At present, most terminals function primarily for operational and export purposes.
"Establishing a strategic storage zone on Sabah's east coast would reduce the region's exposure to market price fluctuations or global supply disruptions.
"In the event of maritime conflict or disruptions in the Strait of Malacca, Sabah would have its own reserves and could continue operating without interruptions to the supply of petrol, diesel, and industrial fuels," he said when debating the policy speech at the Sabah Legislative Assembly.
Yusof, who is also Lahad Datu member of parliament, said while some argued that it was sufficient to expand the capacity of the Labuan Crude Oil Terminal (LCOT) or existing terminals for reserve storage, Labuan itself is a federal territory and not part of Sabah.
He added that it would be more practical to build a refinery on Sabah's east coast from a logistics cost and operational expenditure perspective.
He said his view is in line with the statement by Sabah Finance Minister Datuk Seri Masidi Manjun that oil exploration is now shifting towards the east coast, including areas in the Sulu Sea and maritime borders near Lahad Datu and Tawau.
'First, it would help narrow the economic gap between Sabah's west and east coasts. Secondly, it would position Lahad Datu or Tawau as new petroleum industry hub capable of attracting foreign direct investment (FDI).
"Thirdly, the establishment of high-value industries on the east coast would indirectly strengthen maritime security control in the EssZone (Eastern Sabah Security Zone) area."
Meanwhile, Datuk Hazem Mubarak Musa (Gagasan-Sungai Manilla) said barter trade is one of the key opportunities that could revive Sandakan's economy.
He added that the system does not only have the capacity to stimulate economic growth but is also capable of attracting investors to Sandakan.
"The economic authorities could impose conditions requiring operators engaged in this business to be based in Sandakan.
"Such activities should be concentrated in the area to help develop the Sandakan Industrial Park. At the same time, this would enable the government to effectively monitor and regulate the business."
Comments
Post a Comment