Rabu, Julai 04, 2012

MICCI WANTS ENOUGH GAS FOR SABAH’S OWN DEVT

MICCI wants enough gas for Sabah’s own devt

KOTA KINABALU July 4, 2012: Malaysia International Chambers of Commerce and Industry (MICCI) Sabah Branch wants the state government to continue pushing Petronas to ensure there is enough gas for Sabah’s own development.

“We strongly request the state government to urge Petronas to commit that in all its projects, the first opportunity is given to local consultants and qualified local companies so they will not end up being sub-contractors or sub, sub, sub contractors earning mere peanuts,” said MICCI Sabah Branch chairman, Datuk A Arulpragasam.

Speaking during MICCI Sabah Branch’s annual luncheon here yesterday, he added that despite the setting up of the Sipitang Oil and Gas Industrial Park (SOGIP), there would still be a shortage of gas for development of downstream industries as most of the Sabah gas would be piped to Bintulu.

SOGIP involves the development of over 4,000 acres of land, with the RM4.5 billion Petronas Sabah Ammonia and Urea (SAMUR) plant being the first to be built there.

Chief Minister Datuk Seri Musa Aman was the guest-of-honour at the event, which was also attended by state cabinet ministers, their assistants, as well as business community.

Arulpragasam also added that apart from gas, MICCI also hopes Petronas Gas Berhad’s RM1 billion in capital expenditure for its Liquefied Natural Gas (LNG) terminal in Lahad Datu, which is expected to be completed in 2015, as well as the first 100 megawatt (MW) Kimanis Power Plant that would supply power to the state’s main grid by December next year, and the remaining 200MW by April 2014, would be completed on time in order to solve Sabah’s acute and perennial problem of inadequate electricity supply and frequent interruptions.

“In the Kolombong Industrial area alone, there were 10 unannounced power failures in the last three months and this is coupled with the increase in electricity charges by 30 over per cent which frustrates the manufacturers,” he said.

He added that these were among the many topics raised by MICCI members, which also include the implementation of the minimum wage and cabotage policy, to mention some.

Arulpragasam said issues related to the implementation of the minimum wage policy would no doubt affect the business community which would add to the already higher cost of doing business in Sabah.

“We hope that in the long run, the implementation will benefit both the employers and employees by producing high quality workers achieving better results.

“It is also our hope that the state and federal governments will ensure a smooth implementation of the policy by allowing time for the private sector to make the necessary adjustments. We must all make changes in our mindset that we do not creep into a comfort zone syndrome with the extra pay and make no effort to improve ourselves,” he said.

On the cabotage issue, MICCI hopes that the federal government will implement the one country one price policy in keeping with the 1Malaysia concept so that Sabah will not be made to suffer financially, especially when the goods and service tax (GST) is introduced in the near future, to which Arulpragasam said: “We hope that solutions are found to rectify the pathetic policy.”

He also announced that the extension of land lease is now being carried out by the Land and Survey Department, of which out of the 97 applicants from MICCI members, 19 have been approved by the Natural Resources Department.

On a different note, Arulpragasam said MICCI sees greater investor interests in downstream activities in Sabah such as the agriculture, aquaculture, palm oil and the oil and gas.

“It is our hope that the state government’s investor friendly and hand-holding policies would cement the implementation of these investment projects,” he said.

MICCI, he added, also took note of the RM107 billion investments secured by the Sabah Development Corridor in the first quarter of this year.

“It is our hope that the initial 31 entry point projects (EPPs), worth RM77.5 billion, would be implemented soon in order to create the 144,000 new jobs, thus boosting the state’s economic growth and employment,” he said.

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20 ulasan:

  1. Sabah adalah pengeluar minyak, jadi Sabah harus ada bekalan minyak yang mencukupi.

    BalasPadam
  2. Agree with Malaysia International Chambers of Commerce and Industry that Sabah needs to have access to enough gas for the state's development instead of exporting all the resources.

    BalasPadam
    Balasan
    1. Bagus eksport lebihan saja. jangan pula dijual tapi sendiri rasa kekurangan.

      Padam
  3. Sabah is a producer of natural gas and we could make use of the resources for power generation to resolve electricity insufficiency in the state.

    BalasPadam
    Balasan
    1. SOGT project is designed to help support the development of the state’s economy

      Padam
  4. Semoga Sabah mendapat apa yang perlu untuk negeri itu sendiri.

    BalasPadam
  5. SOGT will have an onshore gas terminal and compression station, as well as terminal facilities for oil, including loading jetties for tankers

    BalasPadam
  6. kalau sudah namanya negeri pengeluar minyak dan gas, patut tiadalah Sabah alami kekurangan.

    BalasPadam
    Balasan
    1. minyak dan gas adalah sumber yang tidak boleh diperbaharui.. mungkin lebih baik jika kerajaan mempertimbangkan sumber yang boleh diperbaharui seperti hidroelektrik..

      Padam
  7. macam mana jika Sabah menggunakan bentuk fizikal muka bumi Sabah untuk menjana elektrik?? bina la empangan seperti empangan Bakun.. confirm tidak ada lagi masalah elektrik..

    BalasPadam
  8. Sabah has become the first state in Malaysia to supply compressed natural gas (CNG) via a virtual pipeline system. Chief Minister Datuk Seri Musa Haji Aman said the approach undertaken by Sabah Energy Corporation (SEC) would enable a wide spectrum of users to benefit from the project.

    BalasPadam
  9. The project is accessible to users who are located up to 70km from SEC's station at the Kota Kinabalu Industrial Park.SEC is also currently exploring the possibility of bringing CNG to the east coast of Sabah and the Sipitang area.

    BalasPadam
  10. As SEC would offer the gas cheaper than other fuels, Musa said it would complement the state's effort to make business activities in Sabah more cost competitive. He also said CNG was a cleaner burning fuel compared to other types of fossil fuel and reduced pollution.

    BalasPadam
  11. This is very important when viewed from the context of the state government's focus towards ensuring that our growth sectors practice initiatives that stress on environmental protection and sustainability. Such a move also fits in with our focus on promoting Sabah as an eco-tourism destination.

    BalasPadam
  12. Meanwhile, the Chief Minister urged industries that used highly polluting fuels to seriously consider switching to natural gas so that everyone could enjoy a cleaner environment. He also said he was pleased that SEC has signed an engineering, procurement, construction and commissioning (EPCC) contract with Galileo of Argentina and Frugas Synergy Sdn Bhd.

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  13. In addition, SEC also signed two natural gas sales and purchase agreements with Ching Kuan Holdings Sdn Bhd and Colourcoil Industries Sdn Bhd. There was a lot of effort put into this matter ensuring all required issues were resolved to the satisfaction of all parties concerned.
    The Chief Minister added that currently the natural gas market handled by SEC was small and geographically scattered. Due to these factors, it is not economical for SEC to distribute natural gas through the conventional way of underground pipelines.
    This virtual pipeline is an alternative, and t was noted that SEC has taken the initiative to introduce this technology in Malaysia. SEC is currently exploring the possibility of bringing natural gas to the east coast of Sabah, and south to the Sipitang area. Musa encourageSEC to actively pursue these options as he is optimistic to seethe benefits of natural gas made available throughout the state.
    From a macro level, he said oil that commanded a premium prices in the overseas market could be exported to bring in more foreign exchange to the country. On the issue of oil and gas reserves, he noted that that in the case of our timber sector, Sabah did not take full advantage of the resource and instead focused on exporting round logs. He admited that in the past, the state government did not place enough emphasis on adding value to timber, which could have created untold spinoffs for the state and the people.
    Today, the focus, he said, has shifted to the oil and gas sector and therefore motioned that all concerned do not miss the opportunity of leveraging on benefits of these two resources through the creation of value-added sectors locally. Musa meanwhile stressed that the state government was committed to making the best use of oil and gas reserves found offshore of Sabah.
    In order to achieve this goal, he said the state government was collaborating with Petronas to channel the benefit of oil and gas in invigorating the local economy where efforts were already materialising through several projects such as the Sabah Oil and Gas Terminal, the Sabah-Sarawak Gas Pipeline, Sabah Ammonia Urea Project (SAMUR) and the Sipitang Oil and Gas Industrial Park.
    To meet the demand for electricity and to ensure that it comes from cleaner resources, gas-fired power plants costing billions of ringgit are coming up in Kimanis and Lahad Datu, each with 300mw capacities. Musa also said oil and gas was an exciting industry and urged those keen to participate to play an active role as there were many opportunities - key among them would come from the downstream sector.

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  14. It is in Musa wishes that locals would gained from quality employment and the creation of new entrepreneurs as the sector grows in years to come. He added that SEC has been given the task to be a key facilitator in Sabah's efforts to maximise local participation in the oil and gas industry.

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  15. For the SAMUR initiative, SEC which had transformed into a dynamic and credible company since its establishment in 1981, has been appointed as an associate to the consortium running the project. With SEC proven track record, the Chief minister is confident that SEC will play a significant role in Sabah's efforts to maximise local participation in the oil and gas industry.

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  16. For the SAMUR initiative, SEC which had transformed into a dynamic and credible company since its establishments in 1981, has been appointed as an associate to the consortium running the project. "With your track record, I am confident that you will play a significant role in Sabah's future growth, specifically through the oil and gas sector. I am also happy to note that SEC has also consistently declared dividends to the state government and I wish you continued success," said Musa.

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  17. The Chief Minister also encouraged SEC and other government-linked companies to constantly think out of the box and create ventured that would enhance their worth. Globalisation demands that we keep up with a fast paced world in order to remain competitive and relevant, he said matter-of-factly. Also present at the function were Deputy Chief Minister Datuk Dr Yee Moh Chai, SEC chairman Au Kam Wah and SEC executive officer Dato' Harun Ismail.

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