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KOTA KINABALU: Gerakan Kuasa Rakyat Malaysia (G57) has renewed calls for a petroleum refinery in Sabah, saying it is now a strategic necessity amid global energy risks and supply chain vulnerabilities.

Its chairman Datuk Zulkarnain Mahdar said Sabah and Sarawak produce over 70 per cent of Malaysia’s oil and gas, but crude is still refined in Peninsular Malaysia, which he described as inefficient and limiting to local growth.

He said a refinery in Sabah would strengthen energy security, create jobs and boost downstream industry, while Labuan could serve as a regional refining and storage hub.

G57 urged federal and state governments, including Petronas, to consider the proposal, noting earlier remarks by Datuk Seri Masidi Manjun that “some form of refinery must be built in the State”.