Datuk Seri Masidi Manjun (left)
It makes me happy, as a Sabahan and having written many times on the perennial problems of under-performing Sabah’s GLCs, to read Datuk Seri Masidi Manjun’s speech during a SYBIL’s [Sabah Young Business Industry Leaders] event on Daily Express 9th August 2024.
Before going further, let me say this. Chief Minister Datuk Seri Hajiji Noor has been right to entrust Masidi to look after the Ministry of Finance. Masidi has stopped many leakages and increased Sabah’s revenue to record high of RM6.973 billion in 2023. Despite numerous global, geopolitical and economic uncertainties, Sabah revenue will likely hold steady and grow.
Because of the mutual trust between Hajiji and Masidi, Hajiji has also entrusted Masidi to develop the oil and gas industry from almost ground zero and transform the GLCs. Two very important sectors in Hajiji’s economic transformation and Sabahans First Policy.
Masidi’s straight talk and no-nonsense management style are yielding results for Sabah never seen before!
IMPOSSIBLE? MASIDI HAS MADE IT POSSIBLE.
Most Sabahans have given up hope on the underperforming GLCs. Impossible to sort them out because of years and years of entrenched and deeply vested interest by political warlords. Masidi has turned the tide.
Here are some highlights from Masidi’s speech which are self-explanatory.
[a] “State-owned SMJ Energy Sdn Bhd (SMJE) is now a RM5.1 billion company despite having started three years ago with a RM50 million grant from the State Government and manned by 14 staff.
”My comment: Definitely not a walk in the park. It takes vision, pragmaticism, courage [both political and personal], confidence and commitment for Masidi to grant RM50 million. An investment well worth it. Bravo to SMJ Energy’s Chairman Datuk Seri Lim Haw Kuang and his team of 14 staff for their exceptional performance.
[b] “Last year SMJE’s profit after tax was RM259 million.”
My comment: Sweet returns of a brave decision! Yes, there will be ups and downs in business but with proper management and sound fundamentals, SMJ Energy will continue to thrive in the long run.
[c] “The point I am trying to say is that if we have honest people, hire purely on merit, are blind to race or religion, just get the best people we can afford and keep it clean, we will never go wrong.”
My comment: These are the most important attributes shared by Hajiji and Masidi, music to ordinary Sabahans who have been dismayed and disappointed with most of the GLCs for years. In business, keeping race or religious prejudices in check is critical. Performance and results are keys. SMJ Energy would not have succeeded if, like the practice in Malaya, race or religion is an important factor.
The enlightened, unbiased leadership of Hajiji and Masidi will prove to be very beneficial for Sabah’s future generations.
Masidi has chosen the best, most qualified Sabahan in oil and gas management, Lim Haw Kuang, to manage SMJ Energy. With his long and established experience in Shell [former Executive Chairman of Shell in China], SMJ Energy is in good hands.
Hajiji and Masidi have started a new culture which are critical for successful economic development, i.e. meritocracy and honesty. Going for the best brains is the best policy. Reflective of this culture, beside SMJ Energy, are Sabah Energy Corporation, SOGDC and Sabah Credit Corporation. It is hoped that the CHAIRMEN AND BOARD OF DIRECTORS of non-performing GLCs will pick up the cues fast.
Let these GLCs be examples to the other non-performing GLCs.
No need to imagine. If all major GLCs can do well like SMJ Energy, Sabah Energy and SOGDC, Sabah will be one of the top states soon. Possible? Yes. Just do what Masidi has done with SMJ Energy.
[d] “The oil and gas sector will be the best place for you actually to really think about making money. Every year, Petronas spent RM2.7 billion value of work in Sabah the last two years. “How much did we get from the companies in Sabah? 11 per cent. In totality, it did come up to RM1.2 billion, but half of these companies are from outside Sabah. That also shows that some of the companies that operate in Kuala Lumpur are doing well,” he said.
My comment: To use a quote from the Bible: “The harvest is plentiful, but the labourers are few”.
Hajiji and Masidi have toiled tirelessly and quietly for Sabah’s equitable share in oil and gas. They have succeeded exceedingly well. A number of Sabahan companies have ventured into this already.
But like the quote from the bible, Sabah needs many more Sabahans to venture into this industry. Sabahans must open their eyes to these opportunities as oil and gas will expand exponentially. For the example, some members of SYBIL have embraced the oil and gas industry already.
First time: Sabahan participation in oil and gas is a very important part of Hajiji’s strategy for his Sabahans First Policy.
[e] “Beginning last year, we initiated a programme whereby local best companies participate aggressively.
My comment: “You can lead a horse to water, but you can’t make him drink”. I am glad that some Sabahan companies are taking up the opportunities created by Masidi. No way near enough yet!
Masidi has just started Sabah’s oil and gas industry. More opportunities are coming! Before non-Sabahans grab the opportunities, Sabahans must jump into it.
Second time: Sabahan participation in oil and gas is a very important part of Hajiji’s strategy for his Sabahans First Policy.
[f] “Following the signing of the Commercial Collaborative Agreement (CCA) between Sabah and Petronas, we now make it mandatory to offer all jobs either directly or indirectly to Sabah companies, so long as they are qualified for it.
My comment:b It has been done. Hajiji and Masidi did not have to politically thump their chests.. Now there are more jobs than suitable Sabahans.
Third time: Sabahan participation in oil and gas is a very important part of Hajiji’s strategy for his Sabahans First Policy.
[g] “We have set up rather a centre for assistance for local companies at SMJE headed by Terry Biusing, who will coordinate to assist as a liaison person between local companies and Petronas.
“We also make it compulsory for Petronas to do a mentorship programme for a Sabah company to work with a bigger company from outside Sabah. Meaning to say, it (the works) can be given to a non-Sabah company on condition they must take a local partner.”
My comment: This is a very good policy. Requiring non-Sabahan companies in oil and gas to take on a local partnership in a piggy ride arrangement is the way to do. Singapore has used this concept extensively at the beginning of its development.
Sabahans must have the right attitude. Oil and gas is not an easy industry. It is demanding in proficiency. Better be humble and earn to crawl before running. The days are over for Ali Baba business, especially in Oil and gas.
Fourth time: Sabahan participation in oil and gas is a very important part of Hajiji’s strategy for his Sabahans First Policy.
Intentionally, I have repeated four times about the oil and gas being a very important part of Hajiji’s strategy for his Sabahans First Policy because the opportunities are the lowest hanging fruits ready for the Sabahans to take.
**** please note I have repeated four times: Sabahan participation in oil and gas is a very important part of Hajiji’s strategy for his Sabahans First Policy.
CAN SMJ ENERGY BE REPLICATED?
Strange as it may be to the non performing GLCs, meritocracy, competitive, competency and honesty are normal dictum in the private corporate world. In fact, these are bare minimum requirements. Any less is unacceptable.
To replicate, there must be: appropriate policies from the government which is the owner [in trust] on behalf of all Sabahans, check and balances and intelligent selection of Chairmen/ Board of Directors with honesty and integrity.
Selection of Chairmen of GLCs must be carefully done. Nothing wrong with politicians to be Chairmen or Board of Directors provided they subscribe to meritocracy, competitive, competency, honesty and knowledge of the industry/business of the GLCs.
Many Singapore’s biggest and most powerful GLCs [DBS, Tamasek, Sembawang, Keppel, Singtel] are chaired by ex-ministers or current politicians and are highly profitable. Some have become multinationals generating billions for Singapore.
NEVER DONE BEFORE!
True. Never before done at the national level or in Sabah. Hajiji and Masidi, by imposing honesty, integrity and professional competency requirements into the management of SMJ Energy, is a first in Malaysia!
Great political courage, conviction, commitments to do a SMJ Energy. It is not without risk. It would have been a thankless task if SMJ Energy has failed. They would have to take the blame. What is important is SMJ Energy has succeeded. Let it be a role model, a flagship, for non-performing GLCs’ Chairmen and Board of Directors.
Source:- Daily Express
