DAP rep laments lack of business opportunities for locals in O&G industry

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Posted on May 17, 2012, Thursday

BUSINESS opportunities for Sarawak-based companies in the oil and gas industry in Miri have become scarce, said Fong Pau Teck (DAP-Pujut) 

When debating on the Head of State’s address at the State Legislative Assembly here yesterday, he said out of the RM24 billion worth of contracts awarded by Shell Miri between 2008 and 2010, only RM4.8 billion were awarded to Sarawak-based companies.

“The contracts worth RM19.2 billion were awarded to non-Sarawak based companies,” he said, adding that it was similar with Petronas Miri, which awarded only nine per cent of its contracts (estimated to be RM5.8 billion) to Sarawak-based companies.

“Whereas our west Malaysian counterparts have been awarded nearly 91 per cent of the contracts worth RM58.2 billion by Petronas Miri in 2008, 2009 and 2010.”

According to him, the contracts awarded to non-Sarawak based companies were subsequently sub-contracted to local companies, resulting in the local companies hardly earning any profit from the contracts.

“Sarawakians must be the main players in the oil and gas industries. More business opportunities for locals here means more jobs opportunities as well as a better economy for Sarawakians,” he said and suggested that the state government form a policy to make sure that Sarawak-based companies were given priority.

Meanwhile, Fong also pointed out that state government should consider providing subsidies to bus companies in Miri due to the rising cost of fuel and vehicles.

Citing Penang as an example, Fong pointed out that due to subsidies provided by their state government, bus companies there were able to provide free service to the public in certain routes to encourage the public to use public transport instead of driving their own vehicles.

“As a result, not only traffic congestion is reduced, the Penang community saves unnecessary expenses on vehicle fuel consumption, and at the same time the federal government does not have to pay unnecessary fuel subsidy,” he said.

Fong also suggested that the state government provide better facilities such as shelters at every bus stop in Miri and regular police patrol in residential areas.

“If the number of passengers using bus service increases, bus companies will be able to make profit, leading to better bus service,” he said.

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