Malaysia’s eastern states will push for more autonomy

Subject

Outlook for Sarawak and Sabah states.

Significance

The Gabungan Parti Sarawak (GPS) alliance, which governs in Sarawak state, supports the Perikatan Nasional (PN) coalition, which earlier this month displaced the Pakatan Harapan (PH) coalition from the federal government upon the appointment of Muhyiddin Yassin as prime minister. The Warisan party, which governs in Sabah state, had supported the PH in the federal parliament.

Impacts

• Steep declines in global oil prices will have a negative impact on state economies in eastern Malaysia.
• The GPS will seek a greater role for the state-owned Petros in Sarawak’s oil and gas sector.
• Sarawak expanding control over its oil and gas sector would increase pressure on Sabah to do likewise.