Jun 14, 2010

Should Malaysia Liberalise Oil & Gase Sector?

Ensure All get to Share Oil, gas sector benefits ~ MCA Speaks

Article by Tan Sri Dr Fong Chan Onn (chairman of MCA's Institue of Strategic Analysis & Policy Reseach) seems like the oil & gas sector is under threat of progressing.

This the one of the sector in Malaysia which is not rationalise or open for liberalisation. In this sector also we can see lots of Bumi companies grows under the help or regulation of Petroleum Act & under strict Petronas rules. So the statement of saying "full benefit of the resources have not trickled down to all levels of society" is misleading. Probably Fong Chan Onn forget almost all the big players especially fabricator, mill manufacturers & steel importers owned by Chinese. Let me mention some. Some of the big fabricators & supplier like Wah Seong Engineering, Kinsteel, Lion Steel, Oilfab, Alpine manufacturing, An Joo (AP steel imported), Ji Kang & a lot more is owned by whom? All of these owned by Chinese businessman.

So don't tell me that the policy of Petronas & government is not giving other race opportunity to do business in Oil & Gase. All of us have a share. I think it is fair for O&G sector to prioritise Bumi's since all other sector already been conquered by others up to 90% market share (automotive, banking, retailing etc2). Yes, Petronas have implemented Bumiputera participation quota ranging from 50% to 70% not 100%. There're still areas that non-bumi's can have business with. What i can say is the quota have its positive effect at place now & future. Due to this factor there's a lot of professional bumi's have their places in international company & also trending of growing SME (contractors) in rural areas such as Bintulu, Paka & Miri.

FCO also says, with this quota in place it serves as a barrier to the overall growth & development of progress upstream & downstream. I dint understand what barrier he's talking about. Upstream & downstream industry is running well. At the moment there's no hiccups along the way. No complain of short of supply of manpower or oil companies complaining regarding the current contractors that they have. So far the overall growth have been great. With a lot of capable local companies stand up to the challenge & some of them goes beyond expectation. Let me mention some companies like Dayang, Petra, PFCE & others. Please do enlighten me what growth he's talking about.

To continue FCO also said that the barrier discourage the growth of talent pool of local experts. Come on-lah. Didn't he even read the statistic & the policy. By having the quota's will ensure all international company need to have at least 50-70% local entity which will definitely benefits the locals. Without having this policy we might end up like Singapore which majority of the workers are expectorate (for international company) & locals only fill in labour work positions (such as clerks, receptionist etc). And also despite all that, the O&G sector still booming & increasingly created Bumi skilled worker that works around the globe.

FCO also says that our O&G sector still lacking professional skill, skilled worker & manpower to cater the needs of the industry. He even quoted a new group of welder, drillers & oil engineers needed to satisfy the evolving need of O&G company. :) I think either FCO dint know or he's lack of information in O&G sector. Do not underestimate the policy that have created thousand of great Malaysian engineer, technicians, drillers & welders. Because of this policy I have friends working in big international company like Saipem, BP & even Shell overseas. These friends of mine hired due to their talents & not due to Petronas policy. In fact they excell by their own effort to successfully become professional in the international arena.

Come on-lah. The way he say it its like the Oil & Gas sector is fully conquered by Bumi's. This is among the only sector which survive liberalisation by Najib. As a conclusion i can say than FCO merely talks about abolishing the quota which is conquered by Bumi's. What i don't understand why O&G? It is because this is the only sector not conquered by them. Do a reseach & u'll find out that a handfull of other races also in the sector.

To the government & prime minister, one thing i can say is DON'T EVER plan to liberalise this sector which is the heart & soul of majority of Bumi economy. A pie need to be share with all the people. Despite all other cuts already conquered by others, let it be this pie owned by the bumi's.

P/s: Maybe Fong forget that Petronas is among 500 Fortune Company by being Bumi owned.


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