Masterplan for state’s industrial terminals in S’wak to complete early 2023

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File photo shows expansion works commissioned by high-tech multinational corporations on the Samajaya Free Industrial Zone.

KUCHING (May 26): The Masterplan for the Development of Industrial Terminals in Sarawak is expected to be completed early next year.

Minister of International Trade, Industry and Investment Datuk Amar Awang Tengah Ali Hasan said the ministry had commenced the Master Plan study.

He said the consultant had visited various identified sites for the proposed industrial terminals, and was now finalising the Interim report to be submitted for consideration.

“When completed in March 2023, the Masterplan will enable Sarawak to plan and develop the petrochemical downstream industry in a more holistic manner,” he said.

On issues raised by Tanjung Batu and Pelagus assemblymen, the Deputy Minister said Petronas has earlier agreed to award at least RM2.1 billion worth of contracts annually as a baseline within Sarawak waters to Sarawakian companies (including those contracts awarded under various Production Sharing Contracts).

“We note that during the pandemic years, the targeted contract value was not achieved due to low activities in the oil and gas sector (2020: RM1 billion,  2021: RM1.99 billion).

“However, we expect this year’s RM2.1 billion target could be achieved as we are recovering from the Covid-19 pandemic,” he said in his winding up speech today.

Awang Tengah said Petronas has also agreed to work towards increasing the contract threshold for Sarawak’s small and medium contractors in both upstream and downstream sectors.

He said for the upstream sector, the contract value threshold would be increased from RM10 million to RM20 million by 2025, and would be further increased to RM50 million by 2030.

For the downstream sector, he said the contract value threshold would be increased from RM5 million to RM10 million by 2025, and RM20 million by 2030.

“Sarawak has also proposed that the Petronas SWEC Code (Standardised Work & Equipment Categories) priority for Sarawakian contractors be increased by 100 per cent by 2025 from the current baseline of 63 categories.

“The SWEC Code priority will increase to 600 categories by 2030,” he said.

Awg Tengah added there were various programmes made available to harness the full potential of oil and gas industry players such as Vendor Development Programme (VDP).

He said as of December 2021, 20 Sarawakian companies had graduated while two Sarawakian companies were still undergoing the VDP programme.

In terms of financial assistance, he said about RM308 million had been disbursed to 26 Sarawakian companies through the Vendor Financing Programme.