Bintulu port takeover will not impact federal revenue, says deputy transport minister

KUALA LUMPUR (July 29): The Sarawak government’s takeover of Bintulu Port will not affect federal revenue, said Deputy Transport Minister Datuk Hasbi Habibollah.

He explained that the entities that manage and operate the Bintulu Port Authority (BPA) continue to generate revenue to the federal government through taxes.

“The acquisition will also not affect the workforce of Bintulu Port, which largely consists of highly skilled local staff,” he said while concluding the debate on the Bintulu Port Authority (Dissolution) Bill 2024 in the Dewan Negara on Monday.

The bill, which seeks to repeal the Bintulu Port Authority Act 1981 and dissolve the BPA, was passed by a majority of eight senators after a debate.

The Bill for the Revocation of the Declaration of an Area in Bintulu District as a Federal Port, 2024 was also passed. This repeals the Declaration of an Area in Bintulu District as a Federal Port Act 1979 (Act 217). This is a result of a government policy to change the status of Bintulu Port from federal to state ownership.

“The provisions relating to liabilities are set out in Section 4 of this Bill, which provides that the same shall be subject to negotiation between the Federal Government and the Sarawak Government, with written consent.

“As per Clause 9, any liabilities in the form of unresolved legal proceedings after the date of handover shall be dealt with by the federal government once the proceedings are completed,” he said, noting that there is an ongoing lawsuit relating to the BPA.

The change in status of Bintulu Port follows a memorandum of understanding signed on March 22 by Transport Minister Anthony Loke Siew Fook and Sarawak Deputy Chief Minister and Minister for Infrastructure and Port Development Datuk Amar Douglas Uggah Embas.

Loke said the change in port status reflects the Madani government’s commitment to uphold the spirit of the 1963 Malaysia Agreement and implement its provisions.

“Bintulu Port is expected to remain an important port not only for Sarawak but also for Malaysia as a leading LNG (liquefied natural gas) port, with the potential for further expansion to support the oil and gas industry in Bintulu and the broader industrial sector in Sarawak,” Loke said.

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