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Daily Express
16 hours ago
- Business
- Daily Express
Phoong explains delay in RM31 billion Esteel project
Published on: Wednesday, June 04, 2025 Published on: Wed, Jun 04, 2025 Text Size: Phoong maintained that the company and its financial capacity were vetted by the Malaysian Investment Development Authority, as required for the approval of its manufacturing licence. Kota Kinabalu: State Industrial Development Minister Datuk Phoong Jin Zhe (pic) has sought to explain the delay in a RM31 billion steel investment project, saying this was caused by setbacks in securing the relevant approvals and natural gas supply. He said the initial projection to have Esteel Enterprise Sabah Sdn Bhd's factory begin operations in the fourth quarter of this year was based on the assumption that the approvals could be obtained without delay. However, he said, 'some obstructions' surfaced with Putrajaya's implementation of a two-year moratorium on approving manufacturing licences for steel-related industries. Phoong said this was acknowledged by Prime Minister Datuk Seri Anwar Ibrahim when he launched the project, which was first announced in November 2022, at the Sipitang Oil and Gas Industrial Park (Sogip). 'The special approval was only obtained on Jan 24, 2025, which affected the project's original timeframe,' he said in a statement. Phoong said technical assessments and negotiations with various stakeholders for the supply of natural gas to the factory had also pushed back the project's implementation. He was responding to Warisan's Elopura Assemblyman Calvin Chong, who had urged the State Government to come clean about the delay in the Esteel investment. Chong said the land lease agreement between Sogip and Esteel, signed in November 2022, stated that the first phase of the project would begin in the fourth quarter of 2023 and was expected to be completed within two years. The former DAP man also questioned the authenticity of the investment, claiming it was hard to find information on Esteel online, and also raised questions on the increased investment amount from RM20 billion to RM31 billion. Phoong maintained that the company and its financial capacity were vetted by the Malaysian Investment Development Authority, as required for the approval of its manufacturing licence. 'The latest amount of RM31 billion is a result of the company's latest review and calculation, which includes the construction of the plant, jetty and other related facilities. 'Value adjustments are common among phased development projects,' he said. The first phase of Esteel's investment in Sabah, estimated to be worth some RM6.4 billion, was officiated by Anwar at the Sabah International Convention Centre on May 30. * 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
The Sun
6 days ago
- Business
- The Sun
Train young Sabahans to become highly skilled in O&G sector
KOTA KINABALU: Prime Minister Datuk Seri Anwar Ibrahim has urged oil and gas (O&G) industry players to play a role in training more young Sabahans, both at the university level and through Technical and Vocational Education and Training (TVET) programmes, to address the sector's workforce needs. Anwar emphasised that such training is vital to ensure that young workers in the O&G sector meet the set standards and requirements, becoming highly skilled workers, thereby reducing mismatches in the industry. He also called on state and federal government agencies to be more flexible in allowing individuals to enter the field even without formal certificates. 'Let them undergo training and ensure that the training meets the industry's standards and requirements,' he said when officiating the launch ceremony of the RM6.4 billion Phase One Esteel project here, today. Also present was Sabah Chief Minister Datuk Seri Hajiji Noor. The three-phase project, worth RM31 billion and undertaken by Esteel Enterprise Sabah Sdn Bhd at the Sipitang Oil and Gas Industrial Park, represents a promising development for Sabah as the state advances in unlocking its full potential. Anwar stressed the importance of providing appropriate training, including opportunities for young Sabahans to enhance their skills outside the state, before returning as qualified professionals such as engineers or technicians. For instance, Petroliam Nasional Bhd (Petronas), the national oil and gas company, is providing comprehensive skills training focused primarily on the sector, the prime minister noted. 'Do not compromise. Think about the future of your students—they will be better prepared to serve the industry,' he added. Meanwhile, Anwar highlighted that Malaysia's political stability and clarity in economic policies have boosted investor confidence, contributing to the country's success in attracting foreign investment across various sectors. He also pointed out that the efficiency and transparency of civil servants in executing their duties are important in ensuring there are no bureaucratic obstacles hindering development projects. 'Investors are confident because of political stability, clear policies—especially economic policies—and effective execution at the ground level in project approvals,' he added.
Borneo Post
6 days ago
- Business
- Borneo Post
Train young Sabahans to become highly skilled in O&G sector – PM
Prime Minister Datuk Seri Anwar Ibrahim accompanied by Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor doing the launching gimmick of the RM6.4 billion Phase One Esteel project at the Sabah International Convention Centre (SICC) KOTA KINABALU (May 30): Prime Minister Datuk Seri Anwar Ibrahim has urged oil and gas (O&G) industry players to play a role in training more young Sabahans, both at the university level and through Technical and Vocational Education and Training (TVET) programmes, to address the sector's workforce needs. Anwar emphasised that such training is vital to ensure that young workers in the O&G sector meet the set standards and requirements, becoming highly skilled workers, thereby reducing mismatches in the industry. He also called on state and federal government agencies to be more flexible in allowing individuals to enter the field even without formal certificates. 'Let them undergo training and ensure that the training meets the industry's standards and requirements,' he said when officiating the launch ceremony of the RM6.4 billion Phase One Esteel project here, on Friday. Also present was Sabah Chief Minister Datuk Seri Hajiji Noor. The three-phase project, worth RM31 billion and undertaken by Esteel Enterprise Sabah Sdn Bhd at the Sipitang Oil and Gas Industrial Park, represents a promising development for Sabah as the state advances in unlocking its full potential. Anwar stressed the importance of providing appropriate training, including opportunities for young Sabahans to enhance their skills outside the state, before returning as qualified professionals such as engineers or technicians. For instance, Petroliam Nasional Bhd (Petronas), the national oil and gas company, is providing comprehensive skills training focused primarily on the sector, the prime minister noted. 'Do not compromise. Think about the future of your students — they will be better prepared to serve the industry,' he added. Meanwhile, Anwar highlighted that Malaysia's political stability and clarity in economic policies have boosted investor confidence, contributing to the country's success in attracting foreign investment across various sectors. He also pointed out that the efficiency and transparency of civil servants in executing their duties are important in ensuring there are no bureaucratic obstacles hindering development projects. 'Investors are confident because of political stability, clear policies — especially economic policies — and effective execution at the ground level in project approvals,' he added. —Bernama
The Sun
6 days ago
- Business
- The Sun
JAG Bhd confident of FY25 rebound with strong fundamentals, sector outlook
SHAH ALAM: JAG Bhd, a leading total waste management company, recorded a loss after tax of RM6.4 million for the first quarter (Q1) ended March 31, 2025 (FY25) compared with a profit after tax of RM3 million registered in the same period last year. Revenue stood at RM46.5 million compared with RM52.7 million a year ago. The contraction was primarily driven by a slowdown in demand from international clients, following uncertainty surrounding the US tariff policy announced in early April. Amid the lack of clarity, customers took a more cautious approach to procurement, resulting in delayed orders during the period. Nevertheless, the group views this as a temporary, one-off impact. Market sentiment is already showing signs of stabilisation, with semiconductor clients resuming typical procurement patterns. Operational fundamentals remain strong, and the Group expects performance to improve in the coming quarters as business activity normalises. Executive director Datuk Ng Meow Giak said while external headwinds impacted Q1 FY25, the company remains confident in its ability to deliver a strong rebound. 'Management guidance for FY25 remains strong and intact, and we expect the remaining quarters of the year to return to profitability. 'The long-term outlook for the industries we serve, particularly semiconductors and electronics, remains robust. 'We are focused on building the operational resilience and business agility needed to capitalise on these opportunities fully,' he said. Ng said the company's total waste management (TWM) segment continues to show strength and agility. 'We are broadening our revenue streams within TWM, including entry into the oil & gas space and tapping into specialised services such as the disposal of scheduled waste, an area that requires licensed handling and technical expertise. 'In Q1 FY25, we recorded a 25% quarter-on-quarter increase in the processing of these materials, signalling serious growth potential in this space. 'This presents a valuable opportunity to strengthen our market position and long-term profitability further,' he said. Ng said the global tariffs are beyond control, but what is within control is how JAG build and future-proof the business. 'That is why we are aggressively driving new opportunities in industrial waste recovery, securing strategic contracts, and exploring untapped markets. Commodity trends also buoy us. 'Gold and silver prices have been on an uptrend, and copper has remained stable. Coupled with our healthy inventory, which can support operations for the next six months, we are well-positioned to benefit from evolving market dynamics,' Ng said. He said the TWM segment remains the group's primary growth engine. In addition to streamlining operations and refocusing on high-value activities, JAG is enhancing productivity through processing efficiencies, expansion of service scope, and diversification into industries with long-term potential. 'As we enter this next phase of growth, we are also taking steps to enhance shareholder value. 'Given the strong fundamentals of our core business and the growth trajectory ahead, we are in the process of formalising a dividend policy. 'This reflects our confidence in the group's performance outlook and our commitment to delivering long-term value to our shareholders,' Ng said.
Barnama
6 days ago
- Business
- Barnama
Train Young Sabahans To Become Highly Skilled In O&G Sector
BUSINESS KOTA KINABALU, May 30 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim has urged oil and gas (O&G) industry players to play a role in training more young Sabahans, both at the university level and through Technical and Vocational Education and Training (TVET) programmes, to address the sector's workforce needs. Anwar emphasised that such training is vital to ensure that young workers in the O&G sector meet the set standards and requirements, becoming highly skilled workers, thereby reducing mismatches in the industry. He also called on state and federal government agencies to be more flexible in allowing individuals to enter the field even without formal certificates. 'Let them undergo training and ensure that the training meets the industry's standards and requirements,' he said when officiating the launch ceremony of the RM6.4 billion Phase One Esteel project here, today. Also present was Sabah Chief Minister Datuk Seri Hajiji Noor. The three-phase project, worth RM31 billion and undertaken by Esteel Enterprise Sabah Sdn Bhd at the Sipitang Oil and Gas Industrial Park, represents a promising development for Sabah as the state advances in unlocking its full potential. Anwar stressed the importance of providing appropriate training, including opportunities for young Sabahans to enhance their skills outside the state, before returning as qualified professionals such as engineers or technicians. For instance, Petroliam Nasional Bhd (Petronas), the national oil and gas company, is providing comprehensive skills training focused primarily on the sector, the prime minister noted. 'Do not compromise. Think about the future of your students—they will be better prepared to serve the industry,' he added.
