Kota Kinabalu: Sabah is facing a shortage of skilled local workers in the oil and gas industry following the implementation of an 80 per cent Sabahan workforce requirement for companies operating in the sector, says Datuk John Lo, a retired banker and advisor to the State Government (in his role in the Sabah Economic Advisory Council as well as Institute for Development Studies).
Speaking on the Daily Express Sabah Matters Podcast, Lo said the quota introduced by Chief Minister Datuk Seri Hajiji Haji Noor has increased demand for local talent to the point where the State can no longer supply enough qualified workers.
“Hajiji has mandated a quota. 80 per cent of oil and gas companies operating in Sabah, the staff must be Sabahans. That has created a situation where for the first time in history, we don’t have enough skilled Sabahans in the oil and gas industry,” he said.
Lo said the development reflects the growing participation of Sabahans in an industry that has traditionally relied on workers from outside the State.
He also said Sabah’s commercial collaboration agreement with Petronas has expanded opportunities for local businesses in the sector.
Under the agreement, Petronas is required to work with Sabahan entrepreneurs and companies, resulting in a significant increase in local participation in the oil and gas industry.
“I think all these are available in the public domain. Then, we have the commercial collaborative agreement in which Petronas is obligated to work with Sabahan entrepreneurs.
“That has resulted in something like 80, I’m sure now maybe has reached 100 plus already, of Sabah companies, actual Sabah companies, functioning and operational companies in the oil and gas, working with Petronas under the guidance of Petronas,” he said.
Asked about his message to young Sabahans, Lo urged them to remain united and welcomed the growing “Sabah for Sabahans” sentiment, which he said reflects a stronger sense of ownership over the State’s economic future.
“My message to Sabahans in general is this: Sabahans must stick together. In the past, we have often been divided and manipulated by outsiders,” he said.
Lo said many sectors of Sabah’s economy had historically been dominated by external interests but noted that the situation was beginning to change as more Sabahans entered business and industry.
“There is now a strong and positive feeling of ‘Sabah for Sabahans,’ and the Sabahan spirit is growing,” he said.
