Latest news with #KCCI
Borneo Post
5 hours ago
- Business
- Borneo Post
Sabah aims to be regional OGSE hub with RM2 billion local contracts, says Masidi
Masidi (fifth from left) with KCCI and DCCI officials at the event on Saturday. KOTA KINABALU (June 28): Sabah's oil and gas sector is poised for greater local participation and global competitiveness as the State Government intensifies its push to position Sabah as a key pillar of Malaysia's energy security and a trusted investment destination. Sabah Finance Minister Datuk Seri Panglima Masidi Manjun said this when addressing members of the Kadazandusun Chamber of Commerce and Industry (KCCI) and the Dayak Chamber of Commerce and Industry (DCCI), along with industry players here. He said this when officiating the Business Opportunities and Challenges in Sabah's Oil & Gas Industry & The Way Forward forum organised by KCCI on Saturday. 'It is a privilege to stand before such an influential gathering of business leaders today,' he said, describing the oil and gas industry as the backbone of Sabah's economy. Masidi highlighted that Sabah consistently contributes nearly 40 per cent of the nation's oil and close to 20 per cent of its gas, resources he described as 'untapped potential, strategic relevance, and the opportunity to position Sabah as a central pillar of Malaysia's long-term energy security.' However, he stressed that recognising this potential was only the beginning. 'The real challenge lies in turning it into meaningful outcomes, especially for Sabahan vendors who have long sought greater access and participation,' he said. Masidi said this was why the State Government, working closely with Petronas under the proactive leadership of SMJ Energy, has been driving initiatives since the signing of the landmark Commercial Collaboration Agreement (CCA) in December 2021. 'The agreement not only affirmed Sabah's rightful role in shaping its energy future but also established a joint coordination committee focusing on upstream activities, domestic gas supply, equity participation, development of the Oil and Gas Services and Equipment (OGSE) industry, human capital and CSR,' he said. He noted that under Sub-Committee 4 (SC4) on OGSE development, Sabahan companies were awarded jobs exceeding RM2 billion in 2024, a three-fold increase from previous years. 'This reflects growing confidence in local capabilities,' he said, adding that the Sabah Local Content Council, chaired by SMJ Energy Executive Director Terry Biusing, has been instrumental in coordinating efforts between the State, Petronas, industry operators and local associations. Looking ahead, Masidi said Sabah aims to position itself not only as a production hub but also as a regional centre of excellence for OGSE innovation and sustainable energy practices. 'We are open for business, transparent, and aligned with the State's development blueprint. New players like ConocoPhillips, INPEX, Dialog Group and others are welcome alongside existing operators,' he said. He said the State Government wants investors to see Sabah not just as a resource base, but as 'a strategic hub to grow their business, form lasting partnerships, and build local OGSE capabilities.' Masidi also called on local businesses to match the government's commitment with action. 'Our unwavering commitment to prioritising Sabahan companies remains paramount. But this requires reciprocal dedication from local businesses – to actively invest in enhancing capabilities, forge strategic partnerships, and embrace innovation,' he stressed. He urged the Chambers of Commerce, especially KKCCI and DCCI, to 'be bold, be visionary, and be future-ready' by leveraging collective strength and encouraging joint ventures and consortia to bid for larger, more complex projects. 'This is how we collectively create greater value and unlock unprecedented growth,' he said. Masidi concluded with a rallying call to industry leaders: 'Let us work together to usher in a new chapter for Sabah's oil and gas industry – one defined by greater empowerment, genuine inclusivity, and meaningful local participation, all without compromising on safety, technical standards, quality, costs, or schedule.
Daily Express
12 hours ago
- Business
- Daily Express
Sabah reaffirms ties with Sarawak
Published on: Saturday, June 28, 2025 Published on: Sat, Jun 28, 2025 Text Size: Dr Joachim (second right) in a group photo with others after the launching gimmick. PENAMPANG: The Sabah Government is committed to strengthening ties and promoting unity with Sarawak through continued collaboration, said Deputy Chief Minister II Datuk Seri Dr Joachim Gunsalam. Speaking at the 2025 Kaamatan Gawai Golf Tournament in Donggongon, Dr Joachim highlighted the event as a meaningful platform to deepen mutual understanding between the people of Sabah and Sarawak, especially the Kadazandusun and Dayak communities. 'This tournament reflects the State Government's aspiration to foster goodwill and cooperation with our Sarawak counterparts,' he said, stressing that cultural events like this are crucial to regional unity and development. He noted that despite Sabah and Sarawak comprising 60 percent of Malaysia's landmass, they hold only about 20 percent of the population, a dynamic that offers room for strategic partnerships. Dr Joachim also praised the growing ties between the Kadazandusun Chamber of Commerce and Industry (KCCI) and the Dayak Chamber of Commerce and Industry (DCCI), saying the tournament has strengthened business and social connections. 'There are no losers here, only winners in friendship and unity,' he said, thanking the Sarawak delegation for their strong support and calling for the tournament's tradition to continue as a celebration of shared values and diversity. Also present were KCCI President Ladislaus Maluda, DCCI President Dato' Allan Keripin, PBB Secretary General YB Miro Simuh, and other dignitaries. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Business Recorder
16 hours ago
- Business
- Business Recorder
KCCI urges govt, ECC to withdraw gas tariff hike proposal
KARACHI: Chairman Businessmen Group Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, while strongly opposing proposal to increase gas tariff for industrial processes in the upcoming meeting of the Economic Coordination Committee (ECC), termed the proposal illogical and detrimental to Pakistan's already struggling industrial sector, particularly at a time when input costs are surging and exports are under severe pressure. Zubair Motiwala and Jawed Bilwani emphasized that the move is unjustified given the current energy market dynamics. They noted that international Brent crude prices have declined, and the SNGPL system is already dealing with a surplus of imported RLNG, with around 300 to 400 MMCFD going unutilized. This surplus exists because power and captive sectors are reluctant to purchase RLNG at exorbitantly high rates compounded by excessive taxes and levies, which has resulted in inefficient resource utilization. Rather than penalizing the industrial sector, the government should be working to improve gas supply management and rationalize pricing. They emphasized that while only around 80 to 100 Independent Power Producers (IPPs) utilize process gas, it is critical to recognize that the livelihoods of over 8,000 Small and Medium Enterprises (SMEs) also depend on this essential resource. Any increase in the gas tariff would severely impact the already struggling SME sector, which plays a vital role in the country's economic fabric. Rather than imposing a hike, a more prudent policy would be to reduce the process gas tariff by at least 20 percent, enabling SMEs to remain operational and contribute effectively to the economy, they suggested, adding that at a time when the business community is already burdened by the harsh taxation measures introduced in the budget, a tariff increase would only deepen their challenges. Given that the country has surplus indigenous gas, the logical course of action would be to offer it at lower rates to stimulate industrial consumption, boost production, and drive economic growth. They further highlighted that OGRA itself, in its decision dated May 20, 2025, approved a significant reduction in gas tariffs for SSGC by PKR 103.95 per MMBtu, setting the new rate at approximately PKR 1,658.56 per MMBtu. This decision was made in recognition of cost realities and declining fuel prices. 'If OGRA found justification to reduce the tariff for SSGC, how can the government justify a hike for industrial consumers?' Chairman BMG and President KCCI questioned. They added that such contradictory measures create serious disparities and undermine industry confidence in policy consistency. They also pointed out that OGRA's determination for SNGPL prescribed a revised price of Rs 1,895.25 per MMBtu, which is still below the proposed hike. Moreover, during OGRA's own hearing process, several petitioners highlighted the existence of a projected RLNG surplus of approximately 400 MMCFD; equivalent to 79,337 BBTU or nearly 25 LNG cargoes. Petitioners also demanded the revision of Brent crude pricing assumptions in OGRA's ERR, noting that the assumed price of USD 75.33 per barrel was higher than global spot rates, leading to artificially inflated diversion costs and non-transparent, non-cost-reflective pricing. Copyright Business Recorder, 2025
Arab News
a day ago
- Business
- Arab News
Pakistani industrialists eye Gulf nations for business as tax laws toughen at home
KARACHI: More and more Pakistanis are planning to shift their businesses to the Gulf countries as Prime Minister Shehbaz Sharif's government seeks to give policing powers to tax collectors, a traders' representative said on Thursday, describing the move as being 'worse than law of the jungle.' The government this month introduced a new legal provision in the form of Section 37AA of the Sales Tax Act, 1990 that allows officers of the Federal Board of Revenue (FBR) to make arrests in case of a 'tax fraud or any other offense warranting prosecution.' The move has sparked protests by the Karachi Chamber of Commerce and Industry (KCCI), the country's largest body of traders and industrialists, in Karachi which the KCCI members say could be expanded to the whole country, if the government did not withdraw the provision decision. In an interview with Arab News, KCCI President Muhammad Jawed Bilwani said investors were already deserting Pakistan for Gulf countries, Vietnam, South Korea, US, African and Central Asian regions and even Afghanistan, and more people plan on joining them after the latest move. 'Most of the people have shifted to the UAE (United Arab Emirates) and Gulf countries where they say the tax rate and electric tariffs have been fixed for 10 years,' the KCCI president said. 'In those countries the tax rate applied is fixed for a decade, unlike Pakistan where we see a change every year. The utility rates are fixed, the departments are fixed, there is one-window operation. Everything is made available for you within 24 hours. The government's response is very good.' Arab News reached out to Pakistan's finance adviser Khurram Schehzad and FBR spokesperson Najeeb Ahmad Memon, who did not respond to requests for comment on the subject. In his budget speech on June 10, Finance Minister Muhammad Aurangzeb said granting policing powers to the FBR was part of the government's efforts to reform Pakistan's weak revenue system that has created an estimated tax gap of Rs5.5 trillion ($19.4 billion). 'This situation was unacceptable,' the minister said at the time. Pakistan has the region's lowest tax-to-GDP ratio that the government seeks to increase to 14 percent in the next three years in line with the International Monetary Fund's loan program that supports the new budget. The IMF's tough conditions have made the government to take steps like the withdrawal of energy subsidies and toughening laws to meet Rs14 trillion ($50 billion) tax target for the next fiscal year starting July 1. Giving policing powers to FBR officers was another such measure. 'That day [June 10] some members asked us what help the [Karachi] chamber could extend if we wanted to make a committee to shift our businesses abroad,' Bilwani told Arab News, warning of going on a strike if the government did not address their concerns. The agitation may jeopardize the macroeconomic stability Pakistan has achieved in the last one year. Sharif's government is already coping with the persisting political instability that is keeping foreign investors away from Pakistan and the country has not attracted more than $3 billion foreign direct investment in about last two decades, according to official data. '[We] will pay taxes with honor,' reads one of the KCCI banners the traders have placed throughout Pakistan's commercial capital of Karachi. Bilwani said the government was granting 'very dangerous powers' to the FBR that would then be able to seize bank accounts of traders, withdraw money from them and arrest them. According to the KCCI data, more than 24,000 Pakistani businesses have registered with the Dubai Chamber of Commerce in the last two and a half years. As many as 8,036 Pakistani firms registered in 2023, 8,179 in 2024 and over 8,100 by the initial months of 2025. 'Thanks to Dubai Chamber membership data, we can see a clear trend of Pakistani businesses establishing themselves in the UAE,' said KCCI spokesman Aamir Hasan. Presently, he said, more than 47,000 Pakistani-owned firms are operating in the UAE, including 8,000 having established there within last one year. 'The kind of direction this budget has taken it can neither help the exports industry nor the import substitute industry to run,' said Bilwani, who was unsure if the government had made any changes in the new budget which the lower house of Pakistan's parliament passed on Thursday. 'The exports of this country have been continuously falling for the last two months.' Pakistan's exports declined by 6 percent in May to $2.67 billion and by 17.66 percent to $2.17 billion in April, according to official figures. The exports rose by 3 percent to $2.65 billion in March. 'Who will survive in this environment? Those who have money can go anywhere and do business,' Bilwani said, adding that mill owners would soon start agitating in Pakistan's textiles and sports goods hubs like Faisalabad, Sialkot and Lahore. This departure by industries will significantly increase unemployment and poverty as well as deteriorate the law-and-order situation in the country, according to the traders' representative. In a separate KCCI statement, Bilwani said 'the protest will escalate. If our demands are ignored, we may be left with no option, but to call for citywide or even nationwide strikes.' 'We don't see things are in order,' Bilwani told Arab News. 'The government should correct its decisions and set them in the right direction so the industry could run.'
Arab News
a day ago
- Business
- Arab News
Pakistani industrialists eye Gulf nations for business as tax laws toughen at home — representative
KARACHI: More and more Pakistanis are planning to shift their businesses to the Gulf countries as Prime Minister Shehbaz Sharif's government seeks to give policing powers to tax collectors, a traders' representative said on Thursday, describing the move as being 'worse than law of the jungle.' The government this month introduced a new legal provision in the form of Section 37AA of the Sales Tax Act, 1990 that allows officers of the Federal Board of Revenue (FBR) to make arrests in case of a 'tax fraud or any other offense warranting prosecution.' The move has sparked protests by the Karachi Chamber of Commerce and Industry (KCCI), the country's largest body of traders and industrialists, in Karachi which the KCCI members say could be expanded to the whole country, if the government did not withdraw the provision decision. In an interview with Arab News, KCCI President Muhammad Jawed Bilwani said investors were already deserting Pakistan for Gulf countries, Vietnam, South Korea, US, African and Central Asian regions and even Afghanistan, and more people plan on joining them after the latest move. 'Most of the people have shifted to the UAE (United Arab Emirates) and Gulf countries where they say the tax rate and electric tariffs have been fixed for 10 years,' the KCCI president said. 'In those countries the tax rate applied is fixed for a decade, unlike Pakistan where we see a change every year. The utility rates are fixed, the departments are fixed, there is one-window operation. Everything is made available for you within 24 hours. The government's response is very good.' Arab News reached out to Pakistan's finance adviser Khurram Schehzad and FBR spokesperson Najeeb Ahmad Memon, who did not respond to requests for comment on the subject. In his budget speech on June 10, Finance Minister Muhammad Aurangzeb said granting policing powers to the FBR was part of the government's efforts to reform Pakistan's weak revenue system that has created an estimated tax gap of Rs5.5 trillion ($19.4 billion). 'This situation was unacceptable,' the minister said at the time. Pakistan has the region's lowest tax-to-GDP ratio that the government seeks to increase to 14 percent in the next three years in line with the International Monetary Fund's loan program that supports the new budget. The IMF's tough conditions have made the government to take steps like the withdrawal of energy subsidies and toughening laws to meet Rs14 trillion ($50 billion) tax target for the next fiscal year starting July 1. Giving policing powers to FBR officers was another such measure. 'That day [June 10] some members asked us what help the [Karachi] chamber could extend if we wanted to make a committee to shift our businesses abroad,' Bilwani told Arab News, warning of going on a strike if the government did not address their concerns. The agitation may jeopardize the macroeconomic stability Pakistan has achieved in the last one year. Sharif's government is already coping with the persisting political instability that is keeping foreign investors away from Pakistan and the country has not attracted more than $3 billion foreign direct investment in about last two decades, according to official data. '[We] will pay taxes with honor,' reads one of the KCCI banners the traders have placed throughout Pakistan's commercial capital of Karachi. Bilwani said the government was granting 'very dangerous powers' to the FBR that would then be able to seize bank accounts of traders, withdraw money from them and arrest them. According to the KCCI data, more than 24,000 Pakistani businesses have registered with the Dubai Chamber of Commerce in the last two and a half years. As many as 8,036 Pakistani firms registered in 2023, 8,179 in 2024 and over 8,100 by the initial months of 2025. 'Thanks to Dubai Chamber membership data, we can see a clear trend of Pakistani businesses establishing themselves in the UAE,' said KCCI spokesman Aamir Hasan. Presently, he said, more than 47,000 Pakistani-owned firms are operating in the UAE, including 8,000 having established there within last one year. 'The kind of direction this budget has taken it can neither help the exports industry nor the import substitute industry to run,' said Bilwani, who was unsure if the government had made any changes in the new budget which the lower house of Pakistan's parliament passed on Thursday. 'The exports of this country have been continuously falling for the last two months.' Pakistan's exports declined by 6 percent in May to $2.67 billion and by 17.66 percent to $2.17 billion in April, according to official figures. The exports rose by 3 percent to $2.65 billion in March. 'Who will survive in this environment? Those who have money can go anywhere and do business,' Bilwani said, adding that mill owners would soon start agitating in Pakistan's textiles and sports goods hubs like Faisalabad, Sialkot and Lahore. This departure by industries will significantly increase unemployment and poverty as well as deteriorate the law-and-order situation in the country, according to the traders' representative. In a separate KCCI statement, Bilwani said 'the protest will escalate. If our demands are ignored, we may be left with no option, but to call for citywide or even nationwide strikes.' 'We don't see things are in order,' Bilwani told Arab News. 'The government should correct its decisions and set them in the right direction so the industry could run.'
