KUALA LUMPUR — The Human Resources Ministry through Socso’s Employment Insurance System (EIS) is helping a few employees let go by Petronas due to workforce reductions.
The ministry in a written parliamentary reply to the Dewan Negara said to date, seven Petronas employees have reported losing their jobs to Socso and have applied for the EIS.
Of this number, Socso has approved four applications and disbursed benefits under the EIS, while the three other applications are still being processed.
“Kesuma (the ministry) is proactively helping employees who have lost their jobs due to the workforce reduction in Petronas.
“Socso also held a meeting with the Petronas management on March 5, 2025, to establish cooperation in assisting affected employees,” the ministry said in a written parliamentary reply to the Dewan Negara dated March 12.
The ministry was replying Senator Tan Sri Mohamad Fatmi Che Salleh who asked how the government would address Petronas employees affected by workforce reduction as reported in recent months.
Scoop had reported on Dec 28 last year that Petronas was planning a retrenchment exercise as part of measures to cope with projected losses as a result of Petroleum Sarawak’s (Petros) emergence as the sole gas aggregator in the East Malaysian state.
Town halls with staff and internal meetings had already discussed the potential downsizing as of late last year.
On Feb 28, Petronas CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz said the national oil company will finalise its rightsizing strategy by the middle of this year, and thereafter begin the organisational restructuring in phases.
He also said the exercise would not be a mass layoff and would “not involve 15,000 to 16,000 jobs”, while all levels including top management would be affected.
Previously though, on Feb 7, Tengku Muhammad Taufik denied that the rightsizing was linked to Petros’ taking over as Sarawak’s sole gas aggregator, and instead cited challenges in the oil and gas sector, greater technical difficulties and declining profit margins.
The human resources ministry in its written parliamentary reply said the various forms of assistance under EIS to workers who have lost their jobs include a job search allowance, early re-employment allowance, shortage of income allowance and a dependent persons allowance.
The ministry said employers who have plans to cease operations or carry out retrenchments should hold an “early intervention programme” and brief employees ahead of time.
Socso can collaborate with these employers for the early intervention programme by providing job profiling sessions and by registering employees in re-employment initiatives. – March 13, 2025