Govt not competing with local firms: Masidi

Daily Express

18-07-2025

Published on: Sunday, July 13, 2025
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.
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