Monday, March 1

Shell Malaysia reshapes to thrive through energy transition

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KUALA LUMPUR (Jan 13): As part of a global reshaping of Shell, Shell Malaysia will be implementing changes to ensure that the company thrives through the energy transition and become a simpler organisation. This reorganisation focuses on improving efficiency to become a more streamlined, competitive and collaborative organisation in today’s challenging landscape.

Shell Malaysia will see growth in jobs in certain areas of its business nationwide as well as reductions in others, with the largest impact felt in Upstream business, which will reduce between 250-300 roles. However, as other businesses in Malaysia are set to grow, the overall reduction of roles in Shell Malaysia is expected to be around 2%. This reduction will take place progressively over two years.

“Malaysia is a very important country for the Shell Group. Upstream Exploration & Production continues to be a critical business for Shell, and the upstream business in Malaysia has been identified as one of Shell’s nine Core Performance Units worldwide. The organisational changes that we are embarking on are crucial for the business to reduce complexity, drive stronger and end-to-end connectedness to make it easier for assets and ventures to focus on delivery,” shared Datuk Iain Lo, Chairman of Shell Malaysia.

As part of its drive for increased efficiency and collaboration, most of Shell Malaysia Upstream staff will relocate to the principal office in Miri, Sarawak. This office consolidation will enable new and better ways of working. Shell Malaysia will continue to maintain an office in Kota Kinabalu for the downstream businesses and some upstream support. There are no changes to Shell’s offshore deep-water operations in Sabah. Menara Shell in Kuala Lumpur will continue to host Shell Malaysia Downstream and corporate entities. Shell business operations centre will continue in Wisma Shell in Cyberjaya.

“We realise that this is difficult news for the impacted staff, and these are never easy decisions. However, change is a necessary one to ensure that Shell in Malaysia remains competitive, stays resilient in challenging times and is in a strong position to capture opportunities in the energy transition. Shell is committed to proactively engaging staff throughout the process and ensuring fair treatment in accordance with our values and with Malaysia’s employment laws and regulations,” he further added.

Shell Malaysia intends to grow its Downstream Marketing businesses to reinforce its Retail and Lubricants leadership positions in the country. Shell Business Operations in Malaysia, which has a clientele across more than 25 countries will continue to grow to manage increasing demand from businesses from Shell companies in other countries. Shell’s Middle Distillate Synthesis (Shell MDS) plant in Bintulu, continues to be a niche business for Shell in Malaysia, producing a range of high-quality finished products including GTL waxes, drilling fluids and chemicals. Shell continues to maintain a network of Malaysian retailers, distributors, suppliers, across our broad value chain, all of whom continue to be indirectly in our employ, as we seek to deliver high quality products and services to all our customers across Peninsular Malaysia, Sabah and Sarawak.

Shell has been in Malaysia for close to 130 years and the company looks forward to many more years as it seeks to be a partner in Malaysia’s progress. Shell will continue to seek growth opportunities in Malaysia in line with its global strategy, to support the country with its energy transition.