KOTA KINABALU: The Parti Gagasan Rakyat Sabah (Gagasan Rakyat) Youth movement has slammed Warisan for what it described as irresponsible political rhetoric over Sabah’s oil and gas sector, accusing the party of being disconnected from the real challenges and progress under the current Gabungan Rakyat Sabah (GRS) Government.
Gagasan Rakyat Youth Exco member Gordon Horace Chin took aim at Warisan’s Datuk Azis Jamman, saying his remarks on the state’s oil and gas participation reflect a “glaring lack of understanding” of the industry, including its risk structures and financial implications.
“Azis speaks loudly, but it is clear he doesn’t understand the oil and gas industry, nor the structure of Production Sharing Contracts, risk profiles in upstream ventures, or the massive responsibilities that come with managing public funds,” Chin said in a statement.
Gordon Horace Chin
He warned that Azis’ “misleading and dangerous” remarks could jeopardise Sabah’s finances if followed, and risk sabotaging the gains made under the leadership of Chief Minister Datuk Seri Haji Hajiji Haji Noor and Finance Minister Datuk Seri Masidi Manjun.
Chin defended the strategic approach taken by SMJ Energy, the state-owned energy company established by the GRS Government, highlighting its focus on acquiring profitable and producing assets while carefully venturing into exploration.
“Oil and gas exploration can cost hundreds of millions, even billions of ringgit, often with no guarantee of success. SMJ Energy has taken a responsible route – securing rights to participate upstream only after discoveries are made,” he said.
Responding to Azis’ criticism of SMJ Energy’s perceived lack of upstream involvement, Chin pointed out that Sabah already holds substantial stakes in key petroleum projects under the Commercial Collaboration Agreement (CCA) with Petronas – including 50% in the Samarang Production Sharing Contract (PSC), 10% in LNG9, and 25% in SAMUR.
“SMJ Energy is not a concept – it is a RM5 billion entity delivering real results, including RM160 million in dividends to the government to date,” he added.
Chin also addressed concerns raised by Warisan over the RM900 million sukuk issued to acquire Sabah International Petroleum (SIP), accusing the opposition of spreading falsehoods while ignoring their own failures.
“SIP was drowning in RM1.7 billion debt, much of it accumulated when Warisan President was SIP chairman. Without government intervention, Sabah Development Bank (SDB) would have defaulted, causing a full-blown financial crisis,” he said.
He clarified that the sukuk was not a bailout but a market-backed restructuring that was oversubscribed 3.9 times, rated AAA, and awarded Malaysia’s Best Non-IPO Fundraising Deal of 2023. “That’s confidence, not controversy,” he said.
According to Chin, the refinancing saved over RM60 million in interest payments within a year, stabilised SDB, and empowered SMJ Energy to continue growing with sound financial backing.
“Warisan, on the other hand, failed to raise a RM10 billion sukuk when in power because the market had no confidence in them. The difference is clear – GRS’ plan worked, theirs didn’t,” he said.
He also debunked claims by Warisan president Datuk Seri Shafie Apdal that his administration settled a RM1 billion government bond in 2019, explaining that repayment came from a sinking fund set up since 2014.
Chin said it was obvious Warisan was frustrated by the current administration’s success, but urged them to stop misleading the public with half-truths and outdated narratives.
“Sabah is finally turning the corner after years of financial mismanagement. That is because this government is focused on solutions—not slogans,” he stressed.
Expressing firm support for Hajiji and Masidi, Chin said the Gagasan Rakyat Youth stands united behind the state’s economic direction.
“The stakes are too high for Sabah to go backwards. Enough with the empty noise. It’s time to move forward – responsibly, confidently, and with a clear plan for Sabah’s future,” he said.
