Skilled local workers help firms weather headwinds

KUALA LUMPUR: Skilled local workforce has helped major oil and gas (O&G) companies cushion the global weak oil prices, ringgit fluctuations and foreign exchange losses over the past few years.

Analysts said companies such as Petroliam Nasional Bhd (Petronas), Sapura Energy Bhd, Alam Maritim Bhd, Barakah Offshore Bhd have hired local professionals and technical and vocational education and training (TVET) graduates in an effort to reduce costs.

Sunway University Business School Professor of Economics Dr Yeah Kim Leng said the O&G sector requires specialised skills for work at oil rigs and fabrication yards.

“In the early days, these areas required foreign expertise and was dominated by expatriates, but now firms, such as Petronas and Sapura, no longer hire foreign professionals but source local engineers from the O&G field.

“This has enabled the country to save a lot in terms of foreign exchange as it is expensive to pay the foreign engineers,” he said.

An O&G engineer at Jurunature Sdn Bhd said the sector is growing robustly and would require TVET graduates fill up the various portfolios.

Many firms are also teaming up with foreign players to save cost as well as tap each other’s strengths and synergies, he said.

Meanwhile, a source at Petronas said the group is committed to collaborating with TVET graduates via the Petronas Training Institute to produce quality O&G workforce.

Universiti Kebangsaan Malaysia Associate Professor Dr Mohamad Sattar Rasul said: “Petronas can do more by introducing an apprenticeship programme to help them secure jobs.”