Sarawak’s energy feud with Petronas gives Malaysia’s Anwar a legal headache
South China Morning Post
by Iman Muttaqin YusofFebruary 24, 2026
AI-Generated Deep Dive Summary
Sarawak’s challenge to three federal petroleum laws in Malaysia’s highest court has reignited a constitutional battle over energy control, testing Prime Minister Anwar Ibrahim’s ability to maintain his ruling coalition. The state of Sarawak, a key ally in Anwar’s government, filed a petition arguing that the laws infringe on its authority to manage its natural resources under the Federal Constitution. This move has sparked tensions, as it highlights the ongoing struggle between federal and state powers over Malaysia’s energy wealth, particularly in resource-rich regions like Sarawak.
The dispute dates back decades but gained urgency with Anwar’s rise to power. Historically, states like Sarawak have sought greater control over their resources, often clashing with federal policies dominated by Petronas, Malaysia’s national oil company. These conflicts have long been a source of political friction, particularly in regions where energy wealth is seen as a symbol of autonomy and economic power. By challenging the laws, Sarawak aims to assert its constitutional rights to manage its petroleum resources independently.
This legal battle has significant implications for Anwar’s federal government, which relies on Sarawak’s support to maintain political stability. If successful, Sarawak could set a precedent for other states to renegotiate their relationship with Petronas and the central government, potentially reshaping Malaysia’s energy landscape. For readers interested in global politics, this case underscores the complexities of resource management, federalism, and the challenges of governing diverse regions within a unified state. It also highlights the broader implications for international investors and partners, as Malaysia navigates these legal and political crossroads.
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Originally published on South China Morning Post on 2/24/2026