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KOTA KINABALU: The Sabah government is open to revisiting a long-standing proposal to build an oil refinery in the state, as fresh oil discoveries, particularly along the east coast, strengthen the case for downstream development.

Deputy Chief Minister II Datuk Seri Masidi Manjun said the idea, previously mooted for locations including Kimanis, remains relevant as Sabah seeks to expand its role in the oil and gas value chain.

Masidi was responding to a renewed call by former chief minister Tan Sri Harris Mohd Salleh in a Daily Express special report who argued that global uncertainties and ongoing conflict involving Iran could make a refinery in Labuan more viable.

While Sabah has long pushed for such development, Masidi said past decisions were influenced by industry shifts and commercial considerations that saw refineries built elsewhere.

He reiterated that it remains a longstanding issue for the state, where crude oil is produced locally but refined outside Sabah.

Despite evolving industry dynamics and investment priorities, Masidi said the state government maintains its position and is prepared to revisit the proposal in light of new developments.