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Enabling a workforce fit for a just energy transition
Enabling a workforce fit for a just energy transition

Malaysian Reserve

time13 hours ago

  • Business
  • Malaysian Reserve

Enabling a workforce fit for a just energy transition

In the energy sector employment, preparing communities for change is no longer optional — it is a prerequisite for a just and lasting transition by AKMAR ANNUAR THE race to decarbonise the global economy is accelerating, but without deliberate focus on workforce readiness, the transition risks leaving many behind. In countries like Malaysia, where energy sector employment remains significant, preparing communities for change is no longer optional — it is a prerequisite for a just and lasting transition. At the 'Enabling the Workforce for a Just Transition' session at Energy Asia 2025, a panel of leaders from academia, industry and human resources discussed how to empower the next generation of workers to thrive in an evolving energy landscape. Their collective message was clear: Long-term investments in skills, inclusive policies, and cross-sector collaboration are vital to delivering a sustainable energy transition that benefits all. Petroliam Nasional Bhd (Petronas) senior VP and group chief HR officer Ruslan Islahudin said the company is committed to ensuring a just transition on three fronts — its own workforce, the wider supply chain ecosystem and society at large. 'Every region starts from a different place. There is no one-size-fits-all approach. The transition must be contextual, and in Malaysia, that means accounting for differences even between West and East Malaysia,' he said. He added that Petronas has signed memoranda of understanding with several institutions, including the UK's Offshore Petroleum Industry Training Organisation (Opito) and the Energy Institute, to bolster technical training and leadership development. 'In Sabah, we found schools lacking basic science equipment. Teachers themselves often do not have the resources to make STEM exciting. We need to fix this from the ground up,' he said. Ruslan says Petronas is committed to ensuring a just transition on 3 fronts — its own workforce, the wider supply chain ecosystem and society at large (Source: The issue of declining interest in STEM (science, technology, engineering and mathematics) was echoed throughout the session. Industry experts warned that unless this trend is reversed, the energy sector may face a talent drought at a time when innovation is most needed. Ruslan said there remains a perception issue surrounding vocational training and technical careers, which are no longer widely viewed as aspirational paths. He stressed that these roles are, in fact, critical to the energy industry's future and must be redefined in the public eye. Young people, he said, need to see that careers in both renewables and hydrocarbons can be exciting and impactful. This sentiment was reflected in the My Energy Future campaign by Opito, which aims to showcase real stories from young professionals in energy. Opito COO Alex Spencer said past transitions — from wood to coal, from oil to nuclear — have always relied on skilled people, and the shift to low-carbon energy will be no different. 'We are not resetting the counter to zero. The current oil and gas (O&G) workforce already possesses a majority of the skills needed. The key is recognising the gap and building on existing capabilities,' he said. He noted that Opito's partnership with the Petronas Energy Transition Academy aims to address this gap by identifying transferable skills and delivering decarbonisation training units. Spencer stressed that attracting new talent remains a challenge, especially as sectors like automotive and IT compete for engineers and young professionals. 'Energy used to have its pick of the workforce but that is no longer the case. We need to make energy vibrant, exciting and visible to the next generation,' he said. We are working with Petronas and Instep to identify the remaining gap and deliver decarbonisation units to support workers transitioning into new sectors, Spencer says (Source: To spark early interest, Opito's My Energy Future campaign focuses on real stories from young entrants into the industry, while promoting STEM engagement in schools. 'This is not something that can be fixed in a year or two. By 2030, we will need tens of thousands of jobs — many of which do not even exist yet. The urgency is real,' he added. Stanford Graduate School of Business lecturer Robert Siegel added that while many Gen Z students express a desire to make a difference, they often underestimate the long-term commitment required. 'This is not an 18 to 24-month cycle. The energy transition will take decades. We need to cultivate a generation that can stick with it for the long haul,' he said. Meanwhile, Energy Institute CEO Nick Wayth warned against repeating past mistakes where communities were left behind during energy shifts. 'We have seen towns still suffering decades later. That cannot happen again,' he noted, citing post-coal transition failures in parts of the UK. Wayth also stressed the importance of diversity and inclusion, particularly in leadership. Through the UK's Powerful Women initiative, female representation on energy boards rose from 9% to 30% in a decade. 'We now have a target of 40% by 2030. The shift is slow, but steady. If we cannot get gender right, how will we manage broader inclusion?' he said. Petronas, too, is advancing its diversity agenda. Ruslan noted that 50% of the company's scholars are women, yet fewer enter leadership roles in technical fields. 'We are measuring this, learning from others, and making room for neurodiverse talent in roles like cybersecurity and data science,' he said. The discussion also turned to funding. Wayth pointed out that the cost of capital in developing nations is two to three times higher than in advanced economies, limiting access to transition technologies. 'The world has capital. The challenge is deploying it equitably,' he said. Other panellists advocated for innovative models like long-horizon venture capital and government-backed incentives to support skills training and technology adoption. Training duplication, too, must be avoided, with credential recognition across borders to improve efficiency. 'Learning is the new pension. Companies must invest continuously in their people. Career paths are no longer linear. What worked yesterday will not work tomorrow. We must let go of old practices,' Siegel said. The speakers agreed that collaboration between government, industry and education institutions is essential to building a resilient, adaptable energy workforce. The issue of declining interest in STEM was echoed throughout the session. Industry experts warned that unless this trend is reversed, the energy sector may face a talent drought at a time when innovation is most needed One panellist cautioned that time is running out, noting that 2030 is only five years away and that the groundwork for a just energy transition must begin immediately. In a separate conversation, Spencer told The Malaysian Reserve (TMR) that the initiative is about 'ensuring the workforce in oil and gas, in energy and renewables, is seen as exciting despite growing competition from sectors like automotive and IT.' Spencer said the partnership with the Petronas Energy Transition Academy is designed to bridge the existing skills gap. 'Our view at Opito is that around 80% of the energy skills needed already exist within the industry. 'We are working with Petronas and Institut Teknologi Petroleum Petronas (Instep) to identify the remaining gap and deliver decarbonisation units to support workers transitioning into new sectors,' he said. He added that mapping clear career pathways is key to helping oil and gas professionals move into other roles. 'If I am an electrical engineer in O&G, I need to know how that transfers to a role in wind or hydrogen. In the UK, we supported the Energy Skills Passport initiative, which maps identical training across sectors to ease these transitions,' he explained. The energy transition may be complex and uneven, but with the right policies, inclusive frameworks and grassroots engagement, the path forward can be both just and sustainable. This article first appeared in The Malaysian Reserve weekly print edition

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