KUALA LUMPUR — The recent move by Petroliam Nasional Bhd (Petronas) to reduce its workforce is driven by global economic pressures and declining crude oil prices, not its dealings with Petroleum Sarawak Bhd (Petros), Deputy Prime Minister Datuk Seri Fadillah Yusof clarified today.
Speaking at a Hari Raya Aidiladha sacrificial ceremony at Taman Hussein Mosque here, Fadillah said the national oil company’s ongoing restructuring exercise is necessary in light of current global challenges, Bernama reported.
“That is why Petronas has to relook its entire operation. I’m planning a meeting with them to get a briefing on the matter and to ensure that the number of layoffs can be reduced, if not avoided,” he told reporters in Kuching today.
On June 5, Petronas president and chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the company is downsizing its workforce by 10 per cent as part of efforts to navigate tough market conditions, particularly due to the drop in oil prices.
He noted that approximately 5,000 employees will be impacted, with notifications to be made in stages throughout next year.
The announcement follows a recent understanding reached between the federal and Sarawak governments on May 21 regarding the roles of Petronas and Petros.
As outlined in a joint declaration, Petronas will continue to carry out its responsibilities under the Petroleum Development Act 1974 (PDA 1974), including its activities and obligations within Malaysia.
Existing agreements involving Petronas and its subsidiaries—particularly those related to the sale and export of liquefied natural gas (LNG)—will proceed without disruption.
A statement from the Prime Minister’s Office also reaffirmed that both federal and state laws pertaining to gas distribution in Sarawak will be upheld and respected by all stakeholders. – June 7, 2025