Latest news with #NikMaheranNikMuhammad
The Sun
2 days ago
- Business
- The Sun
‘Impact of Petronas layoffs could be significant'
PETALING JAYA: Petronas announced last week a phased reduction of over 5,000 jobs over the next twelve months, sparking concerns over regional employment stability, economic resilience and investor confidence in the country's crucial oil and gas sector. Although most of those affected will be contract staff, experts caution that the economic ripple of the layoffs could be significant, impacting not only workers but also communities and industries tied to Petronas operations. Universiti Malaysia Kelantan entrepreneurship and business professor Datuk Dr Nik Maheran Nik Muhammad said the immediate consequence would be a rise in unemployment, particularly in areas where Petronas has a strong operational presence. 'In the long run, continued downsizing and automation may lead to underemployment and skills mismatch in the sector.' Nik Maheran also said with the abrupt displacement of contract workers, the gig and freelance economy is expected to see an uptick. 'Many may turn to ride-hailing services, digital platforms or small-scale entrepreneurship to sustain themselves.' She added that while these roles offer flexibility, they often come with limited income security and little to no social protection. She said although permanent positions remain intact for now, uncertainty is growing within the organisation. 'Morale could drop and highly skilled professionals might begin seeking opportunities abroad or shifting to other industries unless leadership provides clear reassurance.' Nik Maheran said given the extensive links of Petronas to local vendors, logistics providers and support services, the impact of the layoffs would not be confined to the company alone. She said SMEs that rely on Petronas contracts, support staff such as canteen workers and cleaners as well as Bumiputera entrepreneurs who constitute a significant portion of its vendor network, may be disproportionately affected. She pointed out that the hardest-hit regions are expected to be Kerteh (Terengganu), Miri and Bintulu (Sarawak), and Pengerang (Johor), areas where Petronas has a strong economic footprint. 'Households dependent on Petronas-related income may reduce spending, which could trigger declines in retail, real estate and other local business revenues. 'Reskilling initiatives through HRD Corp and TVET programmes may need to be accelerated.' She stressed that the issue goes beyond numbers. 'These job cuts aren't just statistics, they represent families and communities. It's time for government, industry and society to work together to build a more resilient and inclusive economy.' Universiti Sains Islam Malaysia human resource management assoc prof Dr Abdul Rahim Zumrah emphasised the importance of clear and empathetic communication during such periods of uncertainty. 'Companies should hold assemblies or town halls to explain the reasons behind the layoffs, backed by data and long-term plans. When employees understand the rationale, it helps maintain morale and trust. 'Management should create space for employees to voice concerns and receive honest answers. This helps reduce anxiety and prevent speculation. 'Recognition, through formal letters or public appreciation, goes a long way. Companies should also consider former contract workers for future roles.' He said laid-off workers still hold valuable potential. 'Many have solid industry experience. With support from agencies like Mara and the National Entrepreneurial Group Economic Fund, they could transition into roles as consultants, trainers or entrepreneurs.' Abdul Rahim said staff reductions could become unavoidable in times of crisis – whether economic, political or due to currency fluctuations. 'It's natural to seek job security, but we also need resilience and realism, both from employers and employees.' Petronas on Tuesday reaffirmed its commitment to employee welfare amid a restructuring that would cut around 10% of its workforce, offering competitive separation packages. The company said a comprehensive transition programme is in place to support affected staff, ensuring fair, respectful and professional decisions.
The Sun
2 days ago
- Business
- The Sun
Petronas to Cut 10% of Workforce Amid Energy Transition
PETALING JAYA: Petronas announced last week a phased reduction of over 5,000 jobs over the next twelve months, sparking concerns over regional employment stability, economic resilience and investor confidence in the country's crucial oil and gas sector. Although most of those affected will be contract staff, experts caution that the economic ripple of the layoffs could be significant, impacting not only workers but also communities and industries tied to Petronas operations. Universiti Malaysia Kelantan entrepreneurship and business professor Datuk Dr Nik Maheran Nik Muhammad said the immediate consequence would be a rise in unemployment, particularly in areas where Petronas has a strong operational presence. 'In the long run, continued downsizing and automation may lead to underemployment and skills mismatch in the sector.' Nik Maheran also said with the abrupt displacement of contract workers, the gig and freelance economy is expected to see an uptick. 'Many may turn to ride-hailing services, digital platforms or small-scale entrepreneurship to sustain themselves.' She added that while these roles offer flexibility, they often come with limited income security and little to no social protection. She said although permanent positions remain intact for now, uncertainty is growing within the organisation. 'Morale could drop and highly skilled professionals might begin seeking opportunities abroad or shifting to other industries unless leadership provides clear reassurance.' Nik Maheran said given the extensive links of Petronas to local vendors, logistics providers and support services, the impact of the layoffs would not be confined to the company alone. She said SMEs that rely on Petronas contracts, support staff such as canteen workers and cleaners as well as Bumiputera entrepreneurs who constitute a significant portion of its vendor network, may be disproportionately affected. She pointed out that the hardest-hit regions are expected to be Kerteh (Terengganu), Miri and Bintulu (Sarawak), and Pengerang (Johor), areas where Petronas has a strong economic footprint. 'Households dependent on Petronas-related income may reduce spending, which could trigger declines in retail, real estate and other local business revenues. 'Reskilling initiatives through HRD Corp and TVET programmes may need to be accelerated.' She stressed that the issue goes beyond numbers. 'These job cuts aren't just statistics, they represent families and communities. It's time for government, industry and society to work together to build a more resilient and inclusive economy.' Universiti Sains Islam Malaysia human resource management assoc prof Dr Abdul Rahim Zumrah emphasised the importance of clear and empathetic communication during such periods of uncertainty. 'Companies should hold assemblies or town halls to explain the reasons behind the layoffs, backed by data and long-term plans. When employees understand the rationale, it helps maintain morale and trust. 'Management should create space for employees to voice concerns and receive honest answers. This helps reduce anxiety and prevent speculation. 'Recognition, through formal letters or public appreciation, goes a long way. Companies should also consider former contract workers for future roles.' He said laid-off workers still hold valuable potential. 'Many have solid industry experience. With support from agencies like Mara and the National Entrepreneurial Group Economic Fund, they could transition into roles as consultants, trainers or entrepreneurs.' Abdul Rahim said staff reductions could become unavoidable in times of crisis – whether economic, political or due to currency fluctuations. 'It's natural to seek job security, but we also need resilience and realism, both from employers and employees.' Petronas on Tuesday reaffirmed its commitment to employee welfare amid a restructuring that would cut around 10% of its workforce, offering competitive separation packages. The company said a comprehensive transition programme is in place to support affected staff, ensuring fair, respectful and professional decisions.
The Sun
27-04-2025
- Business
- The Sun
High costs dampen dream weddings
PETALING JAYA: Weddings in Malaysia have become increasingly expensive, posing a significant financial challenge for many young couples. Universiti Malaysia Kelantan (UMK) entrepreneurship and business professor Datuk Dr Nik Maheran Nik Muhammad said inflation, rising venue and catering costs, and societal expectations have driven wedding budgets to soar between RM50,000 and RM200,000. 'Malaysia's wedding expenses are among the highest in Asean, with average costs ranging from RM50,000 to RM200,000,' she said. 'In comparison, weddings in Cambodia and the Philippines are significantly more affordable, averaging around US$15,000 (RM71,000) and US$4,800 (RM22,800), respectively.' Research shows that Chinese couples tend to allocate more funds towards luxurious venues and gourmet catering, while Malay and Indian couples often prioritise elaborate decorations and invitations. Regardless of cultural preferences, the rising cost of weddings affects all communities, leading many couples to take on debt to fund their dream celebrations. 'Some take out personal loans or rack up credit card debt ranging from RM30,000 to RM100,000,' said Nik Maheran. 'Alarmingly, the Malaysia Insolvency Department has linked wedding-related financial burdens to an increase in bankruptcy cases among young Malaysians.' Nik Maheran also said financial struggles are a key reason why many young Malaysians, particularly Chinese men, are delaying marriage. 'Statistics show that the marriage rate among Chinese Malaysians has declined sharply in recent years, dropping from 9.8 per 1,000 in 2016 to just 6.6 in 2022. This trend has continued to decline in 2024,' she said. 'As the cost of living and property prices continue to rise, marriage rates may decline further unless economic conditions improve.' To avoid financial distress, smart wedding planning is essential. Nik Maheran advised couples to set a clear budget early, allowing them to plan within their means. Establishing a wedding savings fund can help cover expenses without relying on loans. Cost-cutting measures, such as reducing the guest list or selecting an off-peak wedding date, can significantly lower expenses. 'Avoid following others in having a grand wedding if you cannot afford it,' she advised. 'Have a small wedding instead, and perhaps plan for a grand 10th or 25th year anniversary celebration when you have a stable income or accumulated wealth.' Rather than splurging on lavish weddings, open discussions about finances, realistic budgeting, and prioritising financial stability can help couples build a secure future together. Nik Maheran emphasised 'a wedding is just one day, but financial stability lasts a lifetime'. Nurizyan Syafiqah Mohd Shafruddin, 27, a customer service executive, managed to finance her RM40,000 wedding entirely through savings. 'I had a savings budget of RM40,000 for my wedding, covering both the nikah and bersanding ceremonies. To supplement my income, I sold perfumes and did Shopee affiliate marketing, using that extra income for daily expenses while saving my salary entirely for the wedding.' She said a simple nikah followed by a meal can save significant costs. For business analyst Yaswinii Kannan, 28, her budget initially had no strict limit, but she estimated her total spending at RM85,000, keeping it under RM100,000. However, unexpected costs arose. 'My makeup artist initially charged RM3,150 but later added an extra RM300 for waiting time during my saree change.'
