SEC and Esteel Sabah Collaborate on The Green Steel Project

Sabah Energy Corporation (SEC) has officially handed over the Heads of Agreement to Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah), a subsidiary of Singapore’s Green Esteel Pte Ltd. This significant agreement solidifies SEC’s commitment to environmental responsibility and marks a major step towards cleaner and greener steel manufacturing.

Under the Heads of Agreement, SEC will supply 100 million standard cubic feet per day (mmscfd) of natural gas to Esteel Sabah’s steel manufacturing plant and an additional 50 mmscfd for the plant’s power generation over the next two decades. The ceremony, attended by key stakeholders and dignitaries, showcased the collaborative spirit driving this transformative project.

Representing SEC at the ceremony was Datuk Adzmir Abd Rahman, the Chief Executive Officer of SEC. Esteel Sabah was represented by its Managing Director, Mr. Xu Yihang. The ceremony was witnessed by the Chief Minister of Sabah, Datuk Seri Panglima Haji Hajiji Haji Noor, Minister of Industrial Development & Entrepreneurship Datuk Phoong Jin Zhe, SEC Chairman Datuk Annuar Ayub, and State Secretary Datuk Seri Panglima Sr. Safar Untong.

The Green Steel Project by Esteel Sabah is a comprehensive three-phase initiative valued at RM20 billion. The project stands out for its innovative approach, opting for natural gas as a reducing agent instead of traditional coke and coal. This decision is projected to reduce carbon emissions by an impressive 70%, positioning the steel manufacturing process as low carbon, efficient, and environmentally friendly.

The commitment to sustainability is not only a strategic move for Esteel Sabah but also aligns with SEC’s vision as one of the top state government-linked companies (GLCs). SEC actively promotes an economic landscape that is both thriving and sustainable. Through responsible business practices and strategic partnerships, SEC aims to contribute significantly to the growth and development of the region.

This collaboration signifies a pivotal moment in the transition towards greener industrial practices, emphasizing the importance of responsible corporate citizenship and innovation in addressing environmental challenges.

Chief Minister Explores Asian Supply Base During Working Visit to Labuan

Sabah Energy Corporation’s Chief Executive Officer, Datuk Adzmir Abd Rahman, who also serves as a board member of ASB, participated in a comprehensive briefing on the performance and expansion plan of Asian Supply Base (ASB) during a working visit by Chief Minister YAB Datuk Seri Panglima Haji Hajiji Haji Noor in Labuan. Asian Supply Base is a wholly-owned subsidiary of Sabah Energy Corporation.

The briefing, held in the presence of Labuan Member of Parliament and ASB Chairman, Datuk Suhaili Abdul Rahman, Labuan Corporation Chairman, Senator Tan Sri Anifah Aman, State Secretary Datuk Seri Safar Untong, and YB Datuk Hassan A Ghani Pg Amir, provided insights into ASB’s strategic initiatives.

The Chief Minister’s visit to ASB underscores the government’s commitment to fostering economic development and collaboration between key entities. The engagement with ASB leadership serves as a testament to Sabah’s dedication to maximizing the potential of its strategic assets for the benefit of the community and the region at large.

Sabah Breaks Ground on Ulu Padas Hydroelectric Dam for Energy Boost

Sabah achieved a historic milestone as Prime Minister YAB Datuk Seri Anwar Ibrahim and Chief Minister YAB Datuk Seri Panglima Haji Hajiji Haji Noor led the groundbreaking for the RM4 billion Ulu Padas Hydroelectric Dam in Ulu Tomani, Tenom.

This significant project, a collaboration between Sabah Energy Corporation, KKHJV, and Gamuda Berhad, is set to be completed by 2029, adding 187.5 MW to Sabah’s power capacity—a substantial 15% increase.

The ceremony drew over 1,000 participants, including ministers, industry leaders, and locals, highlighting the project’s national and community importance.

Beyond addressing electricity and water shortages, the dam reflects Sabah’s commitment to sustainable development, promising a brighter future. As the Ulu Padas Hydroelectric Dam progresses, it signifies Sabah’s stride towards energy independence and a resilient, empowered future.

SEC’s 9th Corporate Retreat: Unite & Ignite at Kokol Haven Resort, Kota Kinabalu.

(SEC) recently hosted its 9th annual corporate retreat from October 20th to October 22nd, 2023, at the picturesque Kokol Haven Resort in Kota Kinabalu. This year’s retreat, themed “Unite & Ignite,” brought together SEC’s dedicated staff for three days of collaboration, celebration, and planning for the future.

The SEC corporate retreat has become a highly anticipated event in the company’s calendar, providing a unique opportunity for employees to unwind and reconnect outside the confines of the office. The retreat aimed to promote unity and inspire staff, in line with the chosen theme.

Celebrating Dedication and Loyalty
The retreat commenced with an extravagant annual appreciation dinner on the first night, held against the backdrop of Kokol Haven Resort’s breathtaking scenery. The evening was dedicated to recognizing and appreciating the dedication and commitment of the SEC staff. One of the night’s highlights was the presentation of long-service awards to employees who had served the organization for 20 and 30 years, including the company’s CEO. This recognition not only celebrated their enduring loyalty but also underscored the SEC’s commitment to its workforce.

Uniting Through Team Building
Day two of the retreat was filled with exhilarating team-building activities, encouraging staff to work together, problem-solve, and strengthen their interpersonal relationships. Activities ranged from outdoor challenges to group problem-solving, fostering collaboration and camaraderie among SEC employees.

In the evening, the company organized a town hall session where the CEO and top management laid out the company’s plans for the upcoming years. This platform allowed employees to engage directly with senior management, ask questions, and share their thoughts on the SEC’s future direction.

The town hall session served not only as an informative session but also as a testament to the SEC’s commitment to transparency and the importance of hearing the voices of its employees.

Engaging in Effective Communication
On the final day of the retreat, staff members gathered for a group photo session, capturing the memorable moments shared throughout the retreat. It was a visual representation of the unity and camaraderie cultivated during the event.

The retreat concluded with a half-day communication workshop focusing on enhancing effective communication skills among SEC’s workforce. This skill-building session was designed to empower employees with the tools necessary to promote collaboration and alignment within the organization.

The 9th SEC Corporate Retreat was not only an occasion for relaxation and fun but also a testament to the company’s commitment to its staff’s well-being, development, and the pursuit of a shared vision for the future.

As the retreat ended, employees left Kokol Haven Resort with a renewed sense of unity, fresh inspiration, and a shared commitment to ignite their collective potential for the betterment of the SEC.

YB Datuk Annuar Ayub, the Chairman of Sabah Energy Corporation Sdn Bhd (SEC), and Adzmir Abd Rahman, the CEO, had the privilege of presenting mementos to Sabah’s esteemed Chief Minister, Datuk Seri Panglima Haji Hajiji Bin Haji Noor. This momentous event took place during the Chief Minister’s visit to the SEC booth at the Sabah International Expo 2023 (SIE) held at the Sabah International Convention Centre (SICC). The Minister of Industrial Development and Entrepreneurship of Sabah, YB Ginger Phoong, was also present to witness this special occasion.

The SIE is known as Sabah’s biggest trade fair and serves as a vital platform for exhibitors from the BIMP-EAGA (Brunei, Indonesia, Malaysia, Philippines – East ASEAN Growth Area) region and ASEAN as a whole. It offers a unique opportunity for businesses to connect, establish valuable contacts, and showcase the latest products and services.

Sabah, with its strategic location, abundant natural resources, and access to a market of 60 million customers in the BIMP-EAGA region, is emerging as an ideal trading hub in Southeast Asia. By participating in the SIE, companies can tap into this lucrative market and explore new business opportunities.

The visit of Sabah’s Chief Minister to the SEC booth at the SIE highlights the importance of the event and underscores the government’s commitment to promoting trade and investment in the region. YB Datuk Annuar Ayub and Adzmir Abd Rahman took the opportunity to express their appreciation to the Chief Minister for his support and dedication to the growth of Sabah’s energy sector.

As the SIE continues to attract exhibitors from near and far, Sabah reinforces its position as a key player in the BIMP-EAGA region and a gateway to the larger ASEAN market. With its vibrant business environment and the commitment of its leaders, Sabah is primed to expand its economic potential and drive regional integration.

The SIE serves as a testament to the remarkable achievements and aspirations of Sabah, providing a platform for economic progress, innovation, and collaboration.

Sabah Energy Corporation (SEC) demonstrated its firm commitment to integrity and transparency on the 8th of August 2023, by organizing the 7th instalment of its ‘Ikrar Bebas Rasuah’ event. This initiative saw 26 new staff members take the Anti-Corruption Pledge, pledging to uphold a culture of honesty and accountability within the organization. 

The Deputy Chief Executive Officer/Chief Operation Officer, Ir Hj. Ahmad Jafar @ Jaafar, led by the pledge, witnessed by the CEO, Adzmir Abdul Rahman, and SEC’s top management. This representation of top-level commitment highlights the significance of the event. 

During his address, Adzmir emphasized the importance of living within one’s means to avoid falling prey to the allure of corruption. He also reiterated the need for all SEC employees always to be responsible and conscientious. 

The ‘Ikrar Bebas Rasuah’ event has been an integral part of SEC’s calendar since 2017 and is a testament to SEC’s steadfast dedication to building a corruption-free future. Through events like these, SEC strives to promote a strong anti-corruption stance, ensuring that every member of the organization contributes to a transparent and accountable operating environment.  

SEC aims to establish a corporate environment that promotes a strong sense of responsibility and ethics among its workforce. In doing so, SEC aspires to serve as a role model for other organizations while simultaneously making a positive impact on society’s advancement as a whole. 

Sabah Energy Corporation’s CEO, Adzmir Abdul Rahman, was invited as one of the speakers for the “Malaysia’s Energy Transition Pathways” session during the recent Energy Asia conference.

Adzmir highlighted the importance of the Energy Trilemma Balance and Just Energy transition in achieving the goal of carbon neutrality by 2050.

Adzmir opined that Malaysia is facing the energy trilemma, the challenge of balancing the reliability of energy supply with affordability for the end user while also addressing the looming climate crisis, which complicates the dynamics of energy supply.

Fossil fuels are at the heart of the climate problem in Malaysia. As the country aims to reach net-zero carbon by 2050, fossil fuels still dominate its total primary energy supply, approximately 96%.

Therefore, Adzmir also said that while we need to accelerate the pace of the energy transition through well-planned strategies, the transition should be gradual enough to avoid disruptions to energy security and provide a smooth transition for consumers and the industry. This is where the government can play an important role in setting workable policies and regulatory frameworks to facilitate a smooth energy transition.

Adzmir then gives insight into the concept of a Just Energy transition in shifting from fossil fuels to low or zero-carbon sources fairly and equitably. Social equity and participatory decision-making are the two key elements within the framework of a Just Energy transition that need to be upheld in achieving inclusiveness, energy accessibility, and benefits for all members of society.

He also stressed that the race toward carbon neutrality should not create clear winners or losers. While winners reap the benefits of the energy transition, addressing the needs of those facing high energy costs and reliability issues is essential, ensuring that no one is left behind.

During the discussion, Adzmir was also joined by Dato’ Nor Azmie bin Diron, Secretary-General, Ministry of Economy, Malaysia, Datu Haji Sharbini Suhaili, Group CEO, Sarawak Energy, Dr. Mohd Yusoff Sulaiman, President & CEO of MIGHT, and Jenny Koo, Director, Oil Markets, Midstream & Downstream Advisory of S&P Global Commodity Insights, who chaired the session.

On 22 June 2023, SEC celebrated a huge milestone, which was achieving 1 Million Man-hours without Lost Time Injury (LTI). The ceremony was held at Marriott Hotel Kota Kinabalu, witnessed by SEC’s Chairman, YB Datuk Anwar Ayuub @ Annuar Ayub and Regional Manager, NIOSH Sabah and WP Labuan, Tuan Wan Sarman Bin Sakan.

SABAH ENERGY CORPORATION PAYS RM10 MILLION DIVIDEND TO THE SABAH STATE GOVERNMENT

KOTA KINABALU: Sabah Energy Corporation Sdn. Bhd. (SEC) today paid a dividend of RM10 million to the Sabah State Government for the financial year concluded on 31st December 2022.

YB Datuk Anwar Ayuub @ Annuar Ayub, the Chairman of SEC, presented the dividend to YAB Datuk Seri Panglima Haji Hajiji Bin Haji Noor, The Chief Minister of Sabah. The Board of Director of SEC, YBhg. Datuk Saddi Bin Abdu Rahman and the Chief Executive Officer of SEC, Encik Adzmir Abdul Rahman, were present to witness the handover.

During the ceremony, Adzmir said that SEC and its group of companies profit before tax in 2022 reached an impressive RM47.9 million, a noteworthy increase from the previous year’s RM40.6 million. Asian Supply Base Sdn. Bhd. (ASB), a wholly owned subsidiary of SEC, contributed significantly with a profit before tax amounting to RM28.8 million, while SEC’s standalone profit before tax stood at RM22 million.

Adzmir further highlighted that against the State Government’s paid-up capital of RM299.9 million, the accumulated profit after re-investments over the years has increased the Shareholders’ Fund to over RM 1 billion at the end of 2022. To date, SEC’s total dividend contribution to the Government stands at RM241 million.

As the largest domestic natural gas supplier and transporter in Sabah, SEC is now playing a major role in the industrial and economic growth of the region. According to Adzmir, SEC is committed to enhancing their business operations and profitability in the energy sector, aligning with the state government’s objective to have more active participation of state GLCs in the energy industry.

With its expanding customer base and infrastructure control, SEC is well-positioned to provide quality products and services that will boost profitability and positively impact the people of Sabah through continuous dividend payments to the State Government.

21^st June 2023