Premier Abang Johari Openg says both parties will share the benefits once the gas resources are commercialised.
Premier Abang Johari Openg said geological studies had revealed the presence of natural gas resources in western Sarawak. (Bernama pic)
PETALING JAYA: National oil and gas firm Petronas and Sarawak-owned Petros are working together to explore potential natural gas resources in the Lundu-Balingian geological belt.
Premier Abang Johari Openg said both parties will share the benefits once the resources are commercialised, the Borneo Post reported.
“Petros and Petronas are still in discussions. They will both benefit from it and share everything,” he was quoted as saying.
Abang Johari said geological studies had revealed the presence of natural gas resources in western Sarawak.
However, he did not disclose the estimated size of the reserves or the timeline for exploration and possible commercialisation. - FMT
MALAYSIA’S economic growth has long been supported by export-oriented manufacturing, construction and plantation agriculture.
Behind these industries is another key driver: a large migrant workforce that has helped businesses remain competitive by keeping labour costs low.
However, this dependence has also created long-term challenges, including stagnant wages for many Malaysians, slower adoption of automation, a growing informal labour market and billions of ringgit in annual remittances flowing overseas.
The COVID-19 pandemic exposed these vulnerabilities. Border closures disrupted labour supply, leaving factories short of workers, delaying construction projects and affecting plantation output.
The question is no longer whether Malaysia should reduce its reliance on low-cost foreign labour, but how.
A sudden crackdown through mass deportations or an abrupt freeze on foreign worker recruitment would severely disrupt key industries. Equally, maintaining the status quo is not sustainable.
What Malaysia needs is a carefully managed transition over the next decade that raises productivity while protecting economic growth.
The first step is reforming the foreign worker recruitment system.
The current work permit framework has encouraged businesses to depend on low-cost labour rather than invest in automation.
A single, transparent digital work permit linked directly to an employer’s audited business licence would reduce reliance on intermediaries, improve accountability and strengthen worker protection.
At the same time, foreign worker levies should be increased gradually over several years, with the additional revenue channelled into automation grants for small and medium-sized enterprises (SMEs) and wage support for Malaysians employed in so-called 3D (dirty, dangerous and difficult) jobs.
The objective should not be to penalise businesses, but to create stronger incentives for investment in productivity-enhancing technologies.
Malaysia must also address the issue of undocumented migrant workers.
A carefully managed regularisation programme would bring more workers into the formal economy, allowing labour laws, minimum wage regulations and workplace protections to be enforced more effectively while reducing exploitation.
Businesses also need to rethink long-standing operating models.
Many labour-intensive industries continue to rely on manual processes despite technological alternatives.
Construction companies, for example, can reduce labour requirements through greater use of prefabrication and modular building systems.
In agriculture, mechanisation has already demonstrated its ability to improve productivity in many operations.
Where automation is not practical, employers should improve wages, working conditions and career prospects to make these jobs more attractive to Malaysians.
The common argument that Malaysians are unwilling to work in factories or plantations deserves closer examination. In many cases, concerns over low wages, unpredictable working hours and poor working conditions are equally important factors.
Improving workplace standards would not only attract more local workers but also help businesses retain experienced employees.
The transition will not be without cost. Some products and services may become more expensive as businesses adjust to higher labour costs and greater investment in automation.
However, these adjustments should be viewed as investments in a more productive and resilient economy rather than short-term economic setbacks.
(Image: Pexels/Purvesh Photography)
The government has already introduced measures such as the Progressive Wage Policy and higher foreign worker levies.
These are positive first steps, but they should form part of a broader National Labour Transition Strategy with clear targets to reduce dependence on migrant labour while raising productivity and wages for Malaysian workers.
This is not about blaming migrant workers. They have made significant contributions to Malaysia’s development and deserve fair treatment and decent working conditions.
Rather, it is about building an economy that depends less on low-cost labour and more on innovation, productivity and higher-skilled employment.
If Malaysia is serious about becoming a high-income nation, reducing its dependence on cheap foreign labour must become a long-term national priority.
The author, Professor Datuk Dr Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an Adjunct Professor at the Ungku Aziz Centre for Development Studies, Universiti Malaya.
The views expressed are solely of the author and do not necessarily reflect those of MMKtT.
MALAYSIA’S ambition to develop rockets within the next two years has generated excitement. It signals an aspiration to strengthen the country’s defence capabilities while advancing its position in high-technology industries.
Yet the real question is not whether Malaysia can build rockets. It is whether the country is prepared to build the ecosystem that makes such ambitions sustainable.
Rocket development is among the most technologically demanding fields in modern engineering. It draws upon advanced manufacturing, materials science, artificial intelligence, electronics, software engineering and cybersecurity.
Countries with established aerospace industries did not acquire these capabilities overnight. They invested consistently in universities, research institutions, skilled engineers and long-term industrial policies over many decades.
If Malaysia views rocket development merely as another defence procurement project, it risks missing the larger opportunity.
A credible domestic defence industry is about far more than assembling imported components. Genuine technological sovereignty comes from designing, developing and improving systems locally while building the expertise to innovate independently.
Malaysia therefore needs a clear roadmap showing how today’s manufacturing capabilities can gradually evolve into indigenous research, design and development.
Such a transformation will require sustained investment.
Developing advanced aerospace capabilities cannot be achieved within a single political cycle. It demands long-term policy consistency, stable funding and bipartisan commitment that extends beyond changes in government.
Equally important is accountability.
Large-scale national projects inevitably involve substantial public expenditure. While certain aspects of defence procurement must remain confidential, this should not preclude proper financial oversight, independent audits and transparent governance.
Public confidence depends not only on successful outcomes but also on responsible stewardship of public funds.
The programme should also be evaluated against its broader economic impact.
Malaysia continues to face pressing challenges in healthcare, education and climate resilience. Defence spending should therefore generate wider national benefits rather than exist in isolation.
Investment in aerospace technology should strengthen universities, expand STEM education, create opportunities for local engineers and support research that benefits civilian industries.
Advances in satellite technology, advanced manufacturing, robotics and digital engineering can all emerge from a well-designed aerospace ecosystem.
The greatest success of a national rocket programme will not be measured solely by the number of rockets launched. It will be measured by the industries created, the innovations commercialised and the skilled workforce developed along the way.
Many of today’s leading aerospace nations first invested in people before they became leaders in technology.
Their competitive advantage lies not simply in sophisticated equipment, but in the strength of their research institutions, engineering capabilities and innovation ecosystems.
Malaysia should pursue the same path.
A rocket is ultimately a product of human knowledge and ingenuity. The country’s greatest investment should therefore remain its people.
If this initiative succeeds in producing a new generation of scientists, engineers, researchers and innovators, its impact will extend far beyond national defence.
It will strengthen Malaysia’s technological capabilities, enhance economic competitiveness and help position the country for sustained growth in the decades ahead.
KT Maran is a Focus Malaysia viewer.
The views expressed are solely of the author and do not necessarily reflect those of MMKtT.
