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Daily Express
21-07-2025
- Business
- Daily Express
Sabah's performance earns Asean honour
Published on: Monday, July 21, 2025 Published on: Mon, Jul 21, 2025 Text Size: Masidi receiving the award from Azman. Kota Kinabalu: Sabah was honoured as Malaysia's Most Outstanding State for 2024 at the prestigious Asean International Business Review (IBR) Awards held at the Sabah International Convention Centre (SICC) Saturday night, in view of its impressive economic transformation, strategic planning, and commitment to sustainable development. The award was presented by IBR Awards Chief Judge, Datuk Seri Azman Ujang, and accepted by Sabah Finance Minister Datuk Seri Masidi Manjun on behalf of Chief Minister Datuk Seri Hajiji Noor. Advertisement The recognition was the result of rigorous evaluation by a panel of industry leaders, backed by comprehensive data-driven assessments by expert advisors. In his speech delivered by Masidi, Hajiji credited the State Government's long-term vision and solid policy foundation for driving Sabah's ongoing economic revival and investment momentum. 'For the past five years, we have laid the groundwork for a stronger, united Sabah, inviting the world to partner with us in harnessing our natural resources to uplift the lives of our people,' said Hajiji. Sabah, he noted, is rich in natural assets from gold, copper and silica, to palm oil, cocoa, oil and gas, hydropower, coal and a wealth of marine resources. The state's oceans not only yield some of the world's finest seafood, but also offer immense potential in thermal energy and blue economy ventures. A key milestone in Sabah's economic empowerment was the signing of the Commercial Collaboration Agreement with Petronas, granting the state greater equity and influence in its oil and gas sector. This includes 50pc equity in the Samarang field, 25pc in the Samur petrochemical project, and most recently, a 25pc stake in the USD3.1 billion floating liquefied natural gas (PFLNG 3) facility in Sipitang. Since September 2020, Sabah has secured RM17.41 billion in approved investments across 73 companies in the manufacturing sector, 52 of which are already operational, creating 3,636 jobs. From 2022 to 2024 alone, the state received new investment proposals worth RM42.3 billion, projected to generate nearly 33,000 new jobs. Hajiji also highlighted the transformative potential of the RM31 billion E-steel Enterprise Sabah project launched in June, expected to fuel innovation in green technology and catalyse economic spillovers across the state. To meet growing investor interest, the State Government has approved three new industrial parks in Kota Belud, Beaufort, and Kudat, the latter designated as a Blue Economy Industrial Park. Sabah, Hajiji stressed, is committed to remaining investor-friendly, underpinned by policies that encourage collaboration, ensure transparency, and foster a stable business climate. Enhanced air connectivity is also part of Sabah's investment strategy. 'The new Kota Kinabalu-Taipei-Fukuoka route by AirAsia is a great example of what we hope to see more of, as it supports both tourism and trade,' he added. The Blue Economy, particularly in Kudat, is seen as a future growth engine. The sector is expected to produce 491,000 metric tonnes of seafood annually valued at RM3.25 billion. Beyond fisheries, it offers opportunities in marine biotech, ocean renewable energy, maritime logistics, and blue carbon. One promising innovation is Ocean Thermal Energy Conversion (OTEC), with plans for a 500km coastline deployment that could eventually generate 20,000MW of clean energy, a global first in scale. On infrastructure, Hajiji revealed that RM679.85 million has been allocated this year to tackle immediate water shortages, complemented by long-term projects like the Ulu Padas hydropower dam, which will release 6,000 million litres of water daily. To support long-term growth, Sabah is also investing in its people. Nearly RM1 billion has been channelled into education and youth development initiatives between 2021 and 2024. 'Sabah's story is one of resilience, opportunity, and strategic foresight. We are open for business, ready for innovation, and committed to building a prosperous future for all,' Hajiji 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
New Straits Times
17-07-2025
- Business
- New Straits Times
Sabah to acquire 25pct stake in ZLNG facility
KUALA LUMPUR: The Sabah government, through SMJ Energy (SMJE), will be acquiring a 25 per cent equity stake in the USD3.1 billion nearshore floating liquefied natural gas (ZLNG) facility in Sipitang. The state-owned company signed the Head of Agreement (HOA) with Petronas at the Malaysia Petroleum Club (MPC) today. "This partnership marks another significant milestone in ensuring Sabah's long-term development goals, promoting industrial growth, energy security, and creating new opportunities to drive the state's progress. "Through strategic investments like ZLNG, we will strengthen the state's economic resilience while ensuring that the benefits of Sabah's natural resources directly contribute to the well-being of our people," Chief Minister Datuk Seri Hajiji Noor said in a statement after witnessing the HOA signing. The ZLNG facility, with a capacity of two million tonnes per annum (MTPA), represents a major addition to Malaysia's LNG landscape. Positioned nearshore in Sipitang, the ZLNG facility is currently under construction and is expected to commence operations in the second half of 2027. This project complements Sabah's growing LNG portfolio, alongside two other floating LNG facilities, PFLNG1 (1.2 MTPA) and PFLNG2 (1.5 MTPA), currently operating in Sabah waters. The state government also announced its intention to acquire a 40 per cent participating interest in PFLNG1 through SMJ Energy, with due diligence expected to begin in the second half of 2025. SMJ Energy's growth trajectory since the signing of the Commercial Collaboration Agreement (CCA) with Petronas in December 2021 has been rapid. The company now holds 50 per cent equity in the Samarang PSC oil production asset, 10 per cent equity in LNG9, 25 per cent equity in the SAMUR petrochemical complex, and full ownership of Sabah International Petroleum (SIP), which operates both FPSO and FSO assets. SMJ Energy also holds free-carry and back-in rights in the following exploration blocks: SB409 (20 per cent), SB403 (20 per cent), SB306A (15 per cent), and SB306B (15 per cent). "We are a prudent financial investor with a disciplined approach to portfolio building. Our entry into ZLNG is part of our strategic plan to further diversify and strengthen our position in the upstream, LNG, and petrochemical sectors," the company said.
Borneo Post
17-07-2025
- Business
- Borneo Post
Sabah to acquire 25 per cent equity in Petronas ZNLG facility
Hajiji, together with Petronas Group President and Chief Executive Officer, Tan Sri Tengku Muhammad Taufik, witnessing the exchange of documents between Petronas LNG Sdn Bhd (represented by Vice President, LNG Marketing & Trading – Petronas Gas & Maritime, Shamsairi Mohd Ibrahim) and SMJ Energy Sdn Bhd (Datuk Dr Dionysia Kibat) at the signing ceremony of the Heads of Agreement at the Malaysian Petroleum Club (MPC) in Kuala Lumpur on Thursday. KUALA LUMPUR (July 17): The Sabah Government, through SMJ Energy (SMJE) will be acquiring 25 per cent equity in the USD3.1 billion nearshore floating liquefied natural gas (ZLNG) facility in Sipitang following the signing of the Head of Agreement (HOA) with Petronas at the Malaysian Petroleum Club (MPC) here on Thursday. 'This partnership marks another significant milestone to ensure Sabah's long-term development goals, promoting industrial growth and energy security and creating new opportunities to drive Sabah's progress. 'Through strategic investments like ZLNG, we will strengthen the state's economic resilience while ensuring that the benefits of Sabah's natural resources directly contribute to the well-being of our people,' said Chief Minister Datuk Seri Panglima Hajiji Noor after witnessing the HOA signing. The ZLNG facility with a capacity of two million tonnes per annum (MTPA) represents a significant addition to Malaysia's LNG landscape. Positioned nearshore in Sipitang, ZLNG is currently under construction and is expected to commence operations in the second half of 2027. This project complements Sabah's growing LNG footprint, in addition to two other floating LNG facilities, PFLNG1 (1.2 MTPA) and PFLNG2 (1.5 MTPA), currently operating in Sabah waters. The State Government also announced its intention to acquire a 40 per cent participating interest in PFLNG1 through SMJ Energy, with due diligence targeted to begin in the second half of 2025. SMJ Energy's growth trajectory since the signing of the Commercial Collaboration Agreement (CCA) with Petronas in December 2021 has been rapid. The company now holds 50 per cent equity in the Samarang PSC oil production asset, 10 per cent equity in LNG9, 25 per cent equity in the SAMUR petrochemical complex and full ownership of Sabah International Petroleum (SIP), which operates both FPSO and FSO assets. SMJ Energy also holds free carry and back-in rights in exploration blocks SB409 (20%), SB403 (20%), SB306A (15%) and SB306B (15%) 'We are a prudent financial investor with a disciplined approach to portfolio building. Our entry into ZLNG is part of our strategic plan to further diversify and strengthen our position in the upstream, LNG, and petrochemical sectors. 'This opportunity aligns with our mandate to generate long-term, stable cash flows from high-quality, cash-generating assets,' said SMJ Energy Chief Executive Officer Datuk Dr Dionysia Kibat. Sabah's downstream ambitions are also advancing rapidly. Sabah Energy Corporation (SEC), the state's gas aggregator and distributor, plays a crucial role in ensuring a stable domestic gas supply for Sabah's industries. One of its landmark projects includes supplying gas to E-Steel's RM31 billion green steel plant at the Sipitang Oil and Gas Industrial Park (SOGIP), a key investment supporting Sabah's move toward industrial diversification. Also present at the signing ceremony were Sabah Finance Minister an SMJE chairman Datuk Seri Masidi Manjun, State Secretary Datuk Seri Safar Untung and State Attorney General Datuk Brenndon Soh.
Daily Express
13-07-2025
- Business
- Daily Express
Sabah O&G reform rooted in restructuring: Chia
Published on: Sunday, July 13, 2025 Published on: Sun, Jul 13, 2025 Text Size: KOTA KINABALU: Political Secretary to the Chief Minister, Datuk Dr Roland Chia ( pic ), has dismissed recent remarks by former SOGDC CEO Abdul Kadir Abdullah Damsal, saying they misrepresent Sabah's current oil and gas progress. He said Sabah International Petroleum (SIP) was in financial distress before the GRS administration restructured it to safeguard state interests and create SMJ Energy (SMJE) to deliver long-term value. Chia added that the Sipitang Oil and Gas Industrial Park (Sogip) is now gaining investor confidence, with a major RM31 billion commitment from Esteel Enterprise Sdn Bhd highlighting the shift. He noted that since the Commercial Collaboration Agreement (CCA), SMJE has secured equity in key oil and gas blocks, while Sabah Energy Corporation (SEC) has obtained onshore gas distribution rights and over RM2 billion in contracts awarded to Sabah-based firms this year alone. Responding to claims regarding SMJE's absence from a recent oil and gas bid, Chia clarified that Datuk Seri Masidi Manjun's State Assembly response was factual and not a personal attack, stressing that Sabah's energy institutions are now empowered and led by Sabahans. * 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
Borneo Post
13-07-2025
- Business
- Borneo Post
Sabah's oil and gas gains built on reforms, not rhetoric — Dr Roland
Dr Roland KOTA KINABALU (July 13): The Sabah government's progress in the oil and gas sector is grounded in facts and meaningful reforms, not political rhetoric, said Datuk Dr Roland Chia, Political Secretary to the Chief Minister. Responding to recent remarks by former Sabah Oil and Gas Development Corporation (SOGDC) CEO Abdul Kadir Abdullah Damsal, Dr Roland said the statement distorted reality and overlooked a prolonged period of stagnation under the latter's leadership. 'The recent statement by former SOGDC CEO misrepresents the facts and conveniently glosses over a time of inertia during his own tenure,' said Dr Roland in a statement on Sunday. 'Let's be clear: Sabah International Petroleum (SIP) was in financial distress before it was restructured by the current government. The GRS administration's intervention wasn't just symbolic — it was critical for safeguarding Sabah's financial position and reclaiming control over key energy assets,' he said. Dr Roland noted that SMJ Energy (SMJE) was established to address past structural failures, consolidate state energy interests, enter direct upstream participation, and deliver tangible benefits to the people. 'Under the present administration, the Sipitang Oil & Gas Industrial Park (SOGIP) has gained investor confidence, with Esteel Enterprise Sdn Bhd's RM31 billion investment being a standout example,' he said. He added that the results following the signing of the Commercial Collaboration Agreement (CCA) speak volumes. 'SMJE now holds equity in major oil and gas blocks. Sabah Energy Corporation (SEC) has secured onshore gas distribution rights — a historic milestone. In 2024 alone, RM2 billion in contracts were awarded to Sabah-based companies, many of which are now expanding operations beyond the state,' he said. 'These are not just numbers — they represent real jobs and real economic growth for Sabahans,' Dr Roland stressed. Acknowledging Sabah's longstanding contribution to Malaysia's oil and gas industry, he said the current administration has brought genuine institutional empowerment to the state. 'SMJE and SEC are no longer passive entities. They are now key players, with Sabahans taking the lead — not by chance, but through strategic state action,' he said. Addressing claims surrounding State Finance Minister Datuk Seri Masidi Manjun's remarks in the State Assembly, Dr Roland clarified that they were made in direct response to a question by Datuk Seri Shafie Apdal regarding SMJE's non-participation in an East Coast exploratory bid. 'To twist that context into a personal attack is not only misleading but a deliberate attempt to politicise a factual explanation,' he said. He urged all parties to stay focused on the real, measurable progress made under the GRS government rather than engage in distortions that undermine public trust.
