Sarawak's Bintulu Port Takeover
Sarawak Officially Takes Over Bintulu Port in RM1.8 Billion Deal, Heralding New Green Hub
Key Points
Abang Johari said the port was under Sarawak jurisdiction before management was moved to the federal government specifically to enable development loans backed by federal guarantees—at the time, Sarawak needed about RM400 million from the Asian Development Bank (ADB), and the loan guarantee “could only be provided by the federal government.”
Abang Johari argued that concerns Sarawak was trying to take over federal assets were misplaced, saying the state’s approach was “guided by constitutional provisions and financial responsibility,” and that they had to “put ourselves in the position of the Ministry of Finance” because Sarawak is paying for the port assets.
Mustapha Sakmud highlighted Sarawak’s renewable-energy advantage—particularly hydroelectric power—saying the port’s low-carbon shift makes Bintulu increasingly attractive to investors moving toward low-carbon operations, with potential to position Sarawak as a hub for “green industries, clean energy and high-value manufacturing.”
The ministerial statement added a specific legislative timeline: he said the Madani Government translated MA63 commitment into concrete action through the passage of the Bintulu Port Authority (Amendment) Bill 2024 and the Federal Constitution (Amendment) Bill 2024 in Parliament on July 15, 2024.
At the ceremony, Abang Johari publicly thanked Anwar Ibrahim for attending despite being “just returned from an overseas trip but still made time to come to Sarawak for this historic occasion,” adding, “God willing, we will take good care of this asset.”
Sarawak has officially taken back Bintulu Port from the federal government in a RM1.8 billion deal, converting it from a federal port to a state port on June 21, 2026. Premier Abang Johari Tun Openg handed a cheque for that amount to Prime Minister Anwar Ibrahim at a ceremony at Menara Kidurong, closing a chapter that began when the port was placed under federal control in 1981, according to Dayak Daily.
Prime Minister Anwar called the handover a "model of cooperation" achieved "without pressure," saying what was promised under the Federal Constitution and the Malaysia Agreement 1963 (MA63) had been fulfilled through "mutual understanding and trust." Abang Johari thanked Anwar for attending despite having "just returned from an overseas trip," adding, "God willing, we will take good care of this asset," Dayak Daily reported.
Why Bintulu Became Federal in the First Place
The port did not start out as a federal asset. Under the Port Authorities Ordinance 1961, Sarawak held jurisdiction over its own ports. That changed in the late 1970s when Sarawak needed roughly RM400 million from the Asian Development Bank (ADB) to develop the port. The state could not secure the loan on its own. A federal loan guarantee was the only way forward — but it required the port to be reclassified as a federal asset, according to Dayak Daily.
The Bintulu Port Authority Act 1981 followed, placing the port under federal management. Abang Johari said the move was never meant to be permanent. He argued the state was "guided by constitutional provisions and financial responsibility" in pushing to get the port back, saying Sarawak had to "put ourselves in the position of the Ministry of Finance" — because this time, Sarawak was the one writing the cheque, Dayak Daily reported.
RM1.8 Billion Deal Built on Two Key Agreements
The handover rests on a Tripartite Agreement and a Completion Agreement that set the terms for transferring port assets and compensating the federal side. The federal and state governments reached an in-principle agreement on the RM1.8 billion figure in February 2026. Sarawak chose to pay the full amount in a lump sum rather than installments, with Transport Minister Anthony Loke confirming the state was "confident of its financial capability," according to Headtopics.
The legal groundwork was laid earlier. On July 15, 2024, Parliament passed both the Bintulu Port Authority (Amendment) Bill 2024 and the Federal Constitution (Amendment) Bill 2024, said Minister Datuk Mustapha Sakmud. The Dewan Negara approved the bills on July 29, 2024. Those steps repealed the 1979 federal port declaration and dissolved the old Bintulu Port Authority, according to Jesselton Times.
Bintulu's Shift From LNG Hub to Green Energy Port
Bintulu is already one of the world's biggest LNG export points, shipping 24.8 million tonnes in 2022 alone. But the handover signals a bigger ambition. Mustapha Sakmud said the port is being transformed into a "world-class hub in logistics, industry, and green energy," according to Jesselton Times. The port will be folded into the new Sarawak Central Port Authority, a single body that will manage all of the state's maritime operations.
Sarawak's hydroelectric power gives it a natural edge in the shift to low-carbon industry. Mustapha said the port's green pivot makes Bintulu increasingly attractive to investors chasing low-carbon operations, with potential to become a hub for "green industries, clean energy and high-value manufacturing." PM Anwar also called for closer cooperation between national oil company Petronas and state-owned Petroleum Sarawak Bhd (Petros) to resolve remaining energy resource disputes, The Sun reported.
A Win-Win Model — With Some Unanswered Questions
Officials from both Putrajaya and Kuching called the deal a "win-win." Mustapha said it strengthens Malaysia's federation by expanding Sarawak's role in managing strategic assets. Anwar framed it as proof that MA63 commitments can be resolved through negotiation rather than confrontation, according to Dayak Daily.
Not everyone was satisfied. During parliamentary debates earlier in 2026, opposition members questioned whether RM1.8 billion was enough to compensate federal taxpayers for decades of infrastructure investment and demanded a full asset valuation be made public. Analysts also noted the deal could serve as a template for Sabah, which has its own outstanding MA63 claims — though Bintulu's specific ADB loan history makes it a legally unique case, according to Headtopics.
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