THOMAS identified three specific concerns that Sub-Committee 4 has continued to observe among some Sabahan vendors.
The first is a failure to respond to tender opportunities.
“Operators are issuing invitations to tender, conducting market surveys and identifying scopes of work intended to support greater local participation, yet some of these do not receive adequate responses from local companies.
“When a Sabahan company does not respond to a market survey or participate in a tender process, it is not just a missed business opportunity for that individual company, but it also affects the credibility of the wider local content agenda.
“It creates the perception that even when opportunities are created, the local market may not be fully ready, responsive or commercially prepared to participate,” he said.
Thomas said the minimum expectation is for vendors to engage, respond professionally, submit credible documentation and demonstrate seriousness in pursuing available opportunities.
“If we want the industry to continue creating space for Sabahan participation, then Sabahan companies must also demonstrate the discipline and urgency required to seize those opportunities,” he said.
The second concern is technical non-compliance.
Thomas said some proposals submitted by local vendors do not meet the required technical standards and that this issue must be addressed directly.
“Local content cannot come at the expense of safety, quality, technical integrity or operational reliability.
“Being a Sabahan company provides an opportunity to compete. It does not exempt any company from meeting industry standards,” he said.
He said bid proposals must be complete, technically sound and professionally prepared, with the necessary certifications, competent personnel, proven methodologies, quality assurance systems and relevant project experience included.
“Submitting a weak or incomplete proposal and expecting evaluators to compromise on technical requirements is not sustainable. It does not help the vendors, it does not help the operator and it does not help Sabah,” he said.
The third concern is unrealistic pricing. Thomas said some commercial proposals have been submitted at rates significantly above market benchmarks.
“Being a Sabahan vendor does not provide a licence to overprice. Local content prioritisation is intended to empower local companies, retain more value within Sabah and strengthen our industrial ecosystem.
“It is not intended to create inefficiency, inflated margins or unsustainable cost structures,” he said.
He called on vendors to exercise commercial discipline through fair pricing, efficient cost management and realistic profit margins.
“Protection must be matched with professionalism. Opportunity must be matched with readiness. Local content must be matched with competence, discipline and competitiveness.
“We must build companies that are not only local by registration, but also recognised for credible performance,” he said.
He also urged aspiring local entrepreneurs to engage with the Sabah Oil and Gas Services Council, Persatuan Kontraktor Petroleum Bumiputera Sabah and other industry stakeholders to better understand industry requirements and build credible partnerships.
Addressing students and young Sabahans, Thomas said the oil and gas sector offers a serious and rewarding career pathway.
“The future workforce of Sabah’s energy industry must be shaped and led by our own people,” he said.
