Monday, 18 February 2013

PETRONAS MUST DELEGATE ITS ADMINISTRATIVE POWER TO OIL PRODUCING STATES


Committee with Petronas to resolve MTEM's complaint that Petronas is favouring foreign companies instead of local and Malay companies in awarding job proposed .

As much as it is MTEM's concern, It is also every citizen's concern that the country's natural resources be made to  benefit all the people in this country in all term of fairness, whether through direct involvement or otherwise.

Petronas must not only be obliged to protect local oil and gas business industry, it must also  share and delegate its administrative power to oil producing states for them to administer and manage all oil field  within its border before any contract works are to be awarded to any qualified local Malaysian contractors.

This arrangement, would not affect the participation and or involvement of the local players, particularly those in MTEM.

What  this really emphasize is to get the poor people in the rich oil producing state, who has been deprived over the past 39 years of the enjoyment of employment opportunity to participate and be part of the industry whether through direct employment and or other form of involvement.

The fact is that the four(4) oil rich producing states in Malaysia are states having the most poorest people in comparation to those in  non-oil producing states. 

Thus by making this sort of arrangement, the economic standing of the people of the oil producing states can be elevated and poverty  be eradicated  within just a short period of time  and investors and or business flourish over cheaper and competitive manpower cost that is readily available locally.
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KUALA LUMPUR (Feb 14): The Malay Economic Action Council, formed by 47 Malay business groups, today claimed that Petronas is willing to listen to their demands for more job awards after holding a meeting with them yesterday.
Petronas has proposed forming a joint committee with this council, whose Malay name is Majlis Tindakan Ekonomi Melayu (MTEM), to address issues brought up by the latter, according to council chairman Syed Ali Alattas.
Syed Ali told a press conference the proposed committee with Petroliam Nasional Bhd (Petronas) is to resolve MTEM’s complaints that Petronas isMalay  favouring foreign companies instead of local and Malay companies in awarding jobs.
However, no Petronas representative was present at the media conference.
"We have received many complaints from local entrepreneurs that they have been marginalised by Petronas when it comes to doing business," Syed Ali said.
He added that Petronas, which has allocated RM300 billion for capital expenditure in 2011-2015, “is now willing to listen to us”.
Due to this development, MTEM is drafting a letter to Petronas’ president and CEO Tan Sri Shamsul Azhar Abbas, putting in writing what had been agreed at the meeting.
Syed Ali said he expects Petronas to respond to the letter by February 21.
In response to a question from the Edge on whether MTEM has proposed a quota for Malays entrepreneurs, MTEM CEO Mohd Nizam Mahshar said there is no need for a quota system as local firms aiming for oil and gas projects already have the expertise.
He said Petronas could practice a merit-based system, giving more focus to local firms instead of their international counterparts.
"We believe there are many capable Malay and local companies. While Petronas has been awarding contracts and conducting business with local firms, we believe it can do more (business) with the locals," he said.
MTEM said it is a group consisting 47 Malay entrepreneur non-governmental organisations (NGO) of various sectors, including oil and gas.
In an interview published by Bernama yesterday, former Prime Minister and Petronas's adviser Tun Dr. Mahathir Mohamad said Petronas is "caught" between championing its “founding objective” of uplifting the Bumiputera business community and to open up its business for foreign participation in line with its business globalisation plan.
"If we only look for high-skilled companies, definitely foreign companies will be better than the locals," he said in the interview.
Earlier this month, Syed Ali had urged Shamsul to step down as Petronas's president and CEO for failing to help more Malay companies.
He however has stopped this call today.
Reuters reported that last year, Petronas gave RM28 billion in dividends to the Malaysian government – its only shareholder.


http://my.news.yahoo.com/petronas-pressured-47-malay-groups-oil-gas-jobs-084609325--sector.html


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