.jpg&w=3840&q=100)
Govt not competing with local firms: Masidi
Published on: Sun, Jul 13, 2025
By: Sherell Jeffrey Text Size: Masidi (right) and Terry Kota Kinabalu: Sabah Finance Minister Datuk Seri Masidi Manjun pointed out the government's approach of helping rather than competing with local companies. 'SMJ Energy is not competing with local companies. We are helping them. SMJ Energy is basically a financial investor. The actual work should be done by local companies,' Masidi said at the recent Kadazandusun Chamber of Commerce and Industry (KCCI) – Dayak Chamber of Commerce and Industry (DCCI) Oil and Gas Business Opportunities Forum at the ITCC Grand Ballroom.
Advertisement 'I believe government should not compete with local companies. Our job is to make sure you get the contracts. When you get them, you create an industry. When the industry becomes vibrant, you create more jobs. It is not the government creating jobs, it is the local companies doing that,' he added. This approach has worked well. Initially, 70 per cent of oil and gas companies were inactive, but the situation has improved through active support rather than direct competition. The programme was not without challenges with SMJ Energy Sdn Bhd's Oil and Gas Services and Equipment (OGSE) and Corporate Executive Director Terry Biusing noting many companies initially did not respond to tender invitations and this was a major problem. But through monitoring and follow-up, non-response rates dropped from 70 per cent to just 12 per cent. 'Initially, non-responsiveness was our biggest problem. Tenders were issued to Sabahan companies, but there were no takers. They would not even reply to letters. We are fixing that bit by bit,' Terry said, adding that compliance monitoring has reduced non-compliance to almost zero. He said the solution to current challenges is strategic partnerships, adding that SMJ Energy actively guides companies with practical advice for license applications, for proposals, commercial success and partnerships. 'For license applications, use the KAO to find opportunities and apply for licenses based on what you can actually do. Do not apply for too many licenses or use personal emails instead of proper company emails,' Terry said. 'For proposals, take all requests seriously with management involvement, respond to every tender, use standard templates and do not wait until the last minute to submit. 'For commercial success, study market prices, plan your costs properly, streamline your operations and do not buy through middlemen. 'For partnerships, do not look for partners first. Study your strengths, see what you can do, then find a partner that can fill the gaps. If you look for a partner that is too big for you, you will be eaten alive,' Terry said. He said successful partnerships need clear agreements on technical work, commercial terms and responsibilities from the start. The guidance also warns against Ali Baba arrangements where one party adds no real value and emphasises that Letters of Support have zero value in tender evaluation. 'Success depends on technically sound proposals that are competitively priced,' said Terry. 'With annual oil and gas spending in Sabah totalling about RM7 billion, the potential is enormous. 'Current projections suggest Sabahan companies could capture at least 50 per cent of this market (about RM3.5 billion) through strategic partnerships and building their capabilities,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
16 hours ago
- The Sun
‘Instant retail' price war in China shows no let-up
SHANGHAI: China's largest e-commerce platforms show no signs of halting an 'instant retail' price war that has proven unusually resilient to state criticism, underscoring the near-existential importance placed on instant retail as the future of e-commerce. Their fight in instant retail, where delivery can be as quick as half an hour, risks the wrath of authorities not averse to crackdowns and wary that aggressive price-cutting could entrench deflationary pressure in an economy already under fire from US tariffs and restrictions on tech exports to China. Alibaba, and Meituan have pledged almost 200 billion yuan (RM118 billion) combined to subsidise one-hour delivery in recent months, leading to customers who order beverages, for instance, effectively receiving them for free. So extreme is the strategy that the trio was summoned for the second time last week to the State Administration of Market Regulation which called for 'rational competition' aligned with the government agenda, said a person familiar with the matter. 'It's really a battle that takes place now but is much more related to the expectations for five to 10 years down the road. (The platforms believe this is) life or death, it might mean the future or the lack of a future for their company,' said Ed Sander, tech analyst at Tech Buzz China. The adoption of artificial intelligence and automated warehouses will make instant retail increasingly profitable to the extent it will cannibalise conventional e-commerce, he said. Examples of instant retail and attendant price war include coupons from Alibaba covering the cost of breakfast delivered within 60 minutes, or from Meituan offering free tea. JD Takeaway offers 10 yuan coupons for orders as little as 11 yuan. Alibaba, and Meituan did not respond to requests for comment. Authorities in China typically take a sustained and firm-handed approach toward practices they deem unfavourable to healthy and rational market development, making dissent rare. State media agency Xinhua was unequivocal in a Wednesday editorial about the negative impact of 'zero yuan purchases'. 'On the surface, platform companies engage in 'price wars' to compete for the instant retail market, but their essence is to use subsidies to give birth to a 'bubble market',' the editorial read. 'To put it bluntly, there is no winner.' China's US$19 trillion (RM80 trillion) economy grew 5.3% in the first half of 2025. Hinting at what may be to come, however, retail sales growth slowed to 4.8% in June from 6.4% in May. Moreover, ANZ economists estimated a 0.1% decline this year in the consumer price index and 3% decline in the producer price index, for what would be the first annual deflation since 2009. 'A price war is never in the interest of businesses. Consumers gain of course, but from a macroeconomic point of view (it leads) price expectations to keep decreasing,' said economics professor Bala Ramasamy at the China Europe International Business School in Shanghai. 'The level of competition we have in China has become unrealistic and at times toxic. Government intervention has become necessary for the sake of the greater good,' he said. The regulatory attention is different to that given to the electric vehicle sector, where price wars stemmed in part from overcapacity. One issued raised by the regulator at the Friday meeting was food waste from unconsumed zero-yuan orders, said the person familiar with the matter, who was not authorised to speak with media and so declined to be identified. 'Everything points in the direction that they (regulators) are not happy with this, definitely not happy with a lot of tech companies just burning money by handing out all of those consumer discounts that will have no long-term effect,' Sander said. The appeal of instant retail battle is difficult to ignore for e-commerce firms that have struggled to unlock growth in the consumer spending slowdown since the Covid-19 pandemic. The instant retail sector is growing around 2.5 times faster than conventional e-commerce and is set to surpass 2 trillion yuan in sales by 2030, showed data from the Chinese Academy of International Trade and Economic Cooperation. While consumers may enjoy the low prices, merchants complain on social media that price wars all but eliminate profit margins and restaurateurs bemoan a fall in profitable in-person custom. 'From a regulatory perspective, authorities are generally in favour of competition, what they oppose most is monopoly,' said catering industry analyst Wang Hongdong, founder of catering data research institute NCBD. 'So, a complete halt to the delivery war is unlikely (though) they are likely to address some current issues, such as the impact on dine-in restaurants.' – Reuters
Malay Mail
18 hours ago
- Malay Mail
SMM sues MalaysiaNow for defamation, denies issuing mining licence to politically-linked firm
KOTA KINABALU, July 25 — Sabah Mineral Management Sdn Bhd (SMM) has initiated legal proceedings against news portal MalaysiaNow over allegedly false and defamatory reports concerning the politically-linked company Bumi Suria Sdn Bhd. In a statement, SMM accused MalaysiaNow of publishing 'numerous allegations which are false, misleading, and defamatory' regarding the purported awarding of a prospecting licence (PL) to Bumi Suria, a company linked to prominent businessman and former political aide Datuk Farhash Wafa Salvador Rizal Mubarak. 'At no point in time did MalaysiaNow seek SMM's clarification prior to the publication. The publications were biased, one-sided, and represent a calculated attempt by MalaysiaNow to defame SMM, its directors, and officers,' SMM stated, adding that it would pursue legal action against any other media outlet that republishes the claims. The lawsuit comes after a series of articles and videos by MalaysiaNow suggesting that SMM had improperly awarded a prospecting licence to Bumi Suria for a 70,000-hectare forest reserve area in Kalabakan and Gunung Rara. SMM rebutted this, reiterating that it has no legal power to issue prospecting or mining licences. It stressed that this authority lies solely with the Sabah Department of Lands and Surveys (JTU) under the Sabah Mining Ordinance 1960. JTU director Datuk Bernard Liew noted this yesterday when saying that no mineral-related licence had ever been issued to Bumi Suria. Instead, SMM clarified that it had only issued a 'Conditional Letter of Permission to Apply for a Prospecting Licence' to Bumi Suria following internal board deliberations, stressing that this document was not an approval or the issuance of any licence. 'However, Bumi Suria did not proceed to formally submit any of the required documents for an application. Consequently, on March 24, 2025, SMM issued an official letter of cancellation of permission to apply to Bumi Suria Sdn Bhd. 'These facts were maliciously omitted by MalaysiaNow,' SMM said. SMM also took issue with the use of a photo of its chief executive officer, Natasha Sim, and her name in connection with an audio recording that they claim does not feature her voice and is not associated with her. 'This deliberate act of misrepresentation is unacceptable and unethical,' it said. The issue has drawn public scrutiny, particularly as SMM has been embroiled in controversy since a series of leaked videos and audio recordings emerged, alleging corrupt practices in the awarding of licences and implicating several Sabahan politicians. Two state assemblymen, Datuk Yusof Yaacob (Sindumin) and Datuk Andy Suryady Bandy (Tanjung Batu), are currently facing corruption charges over the scandal. Farhash, a former aide to PKR president Datuk Seri Anwar Ibrahim, has denied allegations that he owned Bumi Suria and that the company had been awarded a mineral prospecting or exploration licence. While confirming he is a director and shareholder, his lawyers have demanded the articles be removed.
Malay Mail
21 hours ago
- Malay Mail
China's e-commerce giants lock horns in ‘instant retail' price war despite regulatory glare
BEIJING, July 25 — China's largest e-commerce platforms show no signs of halting an 'instant retail' price war unusual in its resilience to state criticism, indicating the almost existential importance placed on instant retail as the future of e-commerce. Their fight in instant retail, where delivery can be as quick as half an hour, risks the wrath of authorities not averse to crackdowns and wary that aggressive price-cutting could entrench deflationary pressure in an economy already under fire from US tariffs and restrictions on tech exports to China. Alibaba, and Meituan have pledged almost 200 billion yuan (RM118 billion) combined to subsidise one-hour delivery in recent months, leading to customers who order beverages, for instance, effectively receiving them for free. So extreme is the strategy that the trio was summoned for the second time last week to the State Administration of Market Regulation which called for 'rational competition' aligned with the government agenda, said a person familiar with the matter. 'It's really a battle that takes place now but is much more related to the expectations for five to 10 years down the road. (The platforms believe this is) life or death, it might mean the future or the lack of a future for their company,' said Ed Sander, tech analyst at Tech Buzz China. The adoption of artificial intelligence and automated warehouses will make instant retail increasingly profitable to the extent it will cannibalise conventional e-commerce, he said. Examples of instant retail and attendant price war include coupons from Alibaba covering the cost of breakfast delivered within 60 minutes, or from Meituan offering free tea. JD Takeaway offers 10 yuan coupons for orders as little as 11 yuan. Alibaba, and Meituan did not respond to requests for comment. Toxic competition Authorities in China typically take a sustained and firm-handed approach toward practices they deem unfavourable to healthy and rational market development, making dissent rare. State media agency Xinhua was unequivocal in a Wednesday editorial about the negative impact of 'zero yuan purchases'. 'On the surface, platform companies engage in 'price wars' to compete for the instant retail market, but their essence is to use subsidies to give birth to a 'bubble market',' the editorial read. 'To put it bluntly, there is no winner.' China's US$19 trillion economy grew 5.3 per cent in the first half of 2025. Hinting at what may be to come, however, retail sales growth slowed to 4.8 per cent in June from 6.4 per cent in May. Moreover, ANZ economists estimated a 0.1 per cent decline this year in the consumer price index and 3 per cent decline in the producer price index, for what would be the first annual deflation since 2009. 'A price war is never in the interest of businesses. Consumers gain of course, but from a macroeconomic point of view (it leads) price expectations to keep decreasing,' said economics professor Bala Ramasamy at the China Europe International Business School in Shanghai. 'The level of competition we have in China has become unrealistic and at times toxic. Government intervention has become necessary for the sake of the greater good,' he said. Instant appeal The regulatory attention is different to that given to the electric vehicle sector, where price wars stemmed in part from overcapacity. One issued raised by the regulator at the Friday meeting was food waste from unconsumed zero-yuan orders, said the person familiar with the matter, who was not authorised to speak with media and so declined to be identified. 'Everything points in the direction that they (regulators) are not happy with this, definitely not happy with a lot of tech companies just burning money by handing out all of those consumer discounts that will have no long-term effect,' Sander said. The appeal of instant retail battle is difficult to ignore for e-commerce firms that have struggled to unlock growth in the consumer spending slowdown since the Covid-19 pandemic. The instant retail sector is growing around 2.5 times faster than conventional e-commerce and is set to surpass 2 trillion yuan in sales by 2030, showed data from the Chinese Academy of International Trade and Economic Cooperation. While consumers may enjoy the low prices, merchants complain on social media that price wars all but eliminate profit margins and restaurateurs bemoan a fall in profitable in-person custom. 'From a regulatory perspective, authorities are generally in favour of competition, what they oppose most is monopoly,' said catering industry analyst Wang Hongdong, founder of catering data research institute NCBD. 'So, a complete halt to the delivery war is unlikely ... (though) they are likely to address some current issues, such as the impact on dine-in restaurants.' — Reuters
