LEGISLATION CHALLENGES IN SARAWAK'S AUTONOMY OVER ITS OIL AND GAS RESOURCES: ENCROACHMENT THROUGH THE IMPLEMENTATION OF THE PETROLEUM DEVELOPMENT ACT 1974

This thesis critically examines the constitutional and legislative tensions surrounding Sarawak’s claim to autonomy over its oil and gas resources within the Malaysian federation. It explores how Sarawak’s rights which were once grounded in pre-Malaysia legal instruments such as the 1954 Order-in-Council and the Malaysia Agreement 1963. The autonomous power has been gradually eroded through federal legislative interventions, most notably the Petroleum Development Act 1974. Drawing on doctrinal analysis, interpretative methods, and comparative legal perspectives from Alberta (Canada) and Scotland (UK), this research interrogates the imbalance between federal control and state autonomy. The findings reveal that while Sarawak possesses a legal and moral foundation to assert its resource sovereignty, centralisation policies and weak constitutional safeguards have historically undermined these rights. However, recent legal and political developments, such as the imposition of State Sales Tax (SST) and the operational expansion of Petros, signal a resurgence of state assertion. This study contends that resource federalism in Malaysia is not legally fixed but politically constructed and therefore reformable. The thesis concludes with bold yet practical recommendations, including the constitutional entrenchment of resource rights, a new co-governance model for petroleum management, and the establishment of a Sarawak Sovereign Wealth Fund. These reforms aim not only to restore constitutional balance, but also to reimagine federalism in Malaysia in a way that is just, future-oriented, and resilient.