SEC set to boost Sabah's growth as key energy player

Borneo Post

22-04-2025

Chief Minister Datuk Seri Panglima Hajiji Noor witnesses Sabah Energy Corporation Chief Executive Officer Datuk Adzmir Abd Rahman handing over a RM500,000 contribution to Yayasan Kebajikan Sabah director Datuk Diyanah Abdullah during SEC's Hari Raya Open House today.
KOTA KINABALU (April 22): State-owned energy company Sabah Energy Corporation Sdn Bhd (SEC) is poised to play an increasingly strategic role in Sabah's economic and social development, while cementing its position as a key player in Malaysia's energy sector.
As a wholly state-owned government-linked company (GLC), SEC carries the mandate to contribute meaningfully to the development of the state and the well-being of its people, an aspiration aligned with the Sabah State Government's broader goals.
'In carrying out our responsibilities, SEC is not just supporting Sabah's economic growth — we are actively shaping its future energy landscape,' said SEC chairman Datuk Annuar Ayub.
At present, SEC supplies up to 86 per cent of the natural gas used for electricity generation across Sabah. It also operates a 380MW power plant in the Kota Kinabalu Industrial Park (KKIP), contributing significantly to the state's energy capacity.
Looking ahead, the State Government has entrusted SEC to develop two 100MW gas power plants, one each in KKIP and Kimanis, with SEC as the primary stakeholder.
'These projects are set to position SEC as the largest power producer in Sabah by 2030,' Annuar said.
Beyond electricity generation, SEC, he said, is the main supplier of natural gas to Sabah's industrial sector, a critical role that is also helping to attract significant foreign investments.
These include the RM2.3 billion copper foil plant by South Korea's SK Nexilis, a solar glass manufacturing plant by China's Kibing Group valued at RM3 billion in KKIP and RM7.2 billion in Kimanis, and the RM20 billion green steel plant in Sipitang by Singapore-based Esteel Enterprise Sabah, Annuar said at SEC's Hari Raya Aidilfitri open house held at SICC here today.
Additionally, SEC supplies gas to over 40 local SMEs, supporting grassroots industrial growth and with distribution capabilities reaching 370 million standard cubic feet per day (MMscfd), SEC is currently Sabah's largest and Malaysia's third-largest natural gas supplier, ranking just behind Gas Malaysia Berhad and Petronas.
According to Annuar, SEC is on track to become the second largest in the country, driven by rising demand and a progressive expansion strategy.
'SEC is also embracing renewable energy, with plans to develop a 15MW solar project in Tuaran and the 187.5MW Ulu Padas Hydroelectric Dam in Tenom, expected to contribute 15 per cent of Sabah's total energy capacity upon completion in 2030,' he said.
In another groundbreaking move, SEC, Annuar disclosed, has received a mandate from the Sabah Energy Council to develop a 100MW wind energy project in Kudat, which is currently in the final stages of feasibility studies.
'Through this project, we will also be working closely with local communities via land leasing arrangements, providing not just energy, but also a boost to the rural economy,' he said.
'These efforts reflect our commitment to energy security, environmental sustainability, and inclusive economic growth,' he added.
SEC's strategic initiatives have translated into robust financial performance. For the financial year ending 2024, the company posted a pre-audit profit before tax of RM69.8 million at Group level, and RM53.9 million at Company level, one of the highest in its history.
'In recognition of this performance, I'm pleased to announce that the Board of Directors has approved a record RM18 million dividend payout to the Sabah State Government for 2024,' Annuar said. 'This reflects prudent financial management and strong governance, with unwavering support from the State Government and key ministries,' he said.
SEC's impact extends well beyond the balance sheet, Annuar said, adding, 'As part of its corporate social responsibility (CSR), the company continues to invest in education and community upliftment, providing learning equipment and assistance to underprivileged students in Sipitang, Kimanis, Kota Kinabalu and Tuaran.
'Success isn't measured solely by profit. It's about how we contribute to the community,' Annuar pointed out.
To that end, SEC has increased its annual contribution to the Sabah Welfare Foundation to RM500,000, up from RM200,000 last year. The funds are aimed at supporting vulnerable groups in partnership with the foundation.
In tandem with its CSR work, SEC is also nurturing human capital through its Skill Enhancement, Career Advancement (SECA) programme in collaboration with UMS and vocational institutions. The programme offers industrial training opportunities to B40 students, seven of whom were absorbed into SEC's workforce in its inaugural year.
'We're proud to be supporting the State's goal to develop the energy sector as a strategic industry led by local talent,' Annuar said.
In keeping with its values, SEC also remains committed to spiritual and religious obligations. As part of this year's corporate events, the company will hand over RM198,536 in business zakat for 2024, a contribution aimed at supporting underprivileged families and communities in need.
'This is not just about fulfilling a religious duty, it's a trust, and a responsibility we take seriously,' said Annuar.
With its comprehensive vision for sustainable growth, energy innovation and community development, SEC is positioning itself as a model GLC, one that delivers real value to both the economy and the people of Sabah.