SMJ Energy Sdn Bhd said the state government’s landmark partnership with Petronas in 2021 under a commercial collaboration agreement has triggered a massive economic shift in Sabah’s O&G sector.

“The numbers speak for themselves,” SMJ Energy chairman Masidi Manjun said in a statement today.

“In 2018, Sabah companies held only 3% of the contract market share in the state. Today, that figure stands at an amazing 36%.

“This is not a coincidence; it is the direct result of having clear policies, such as tender thresholds, reserved work categories, and mandatory partnership requirements, which ensure our local companies are given priority in the competitive bidding process.”

State-owned SMJ Energy, which has been tasked with coordinating Sabah’s role across the entire O&G value chain, also noted that the total number of contracts held by Sabahan vendors rose from 133 in 2021 to 483 in September 2025, a 263% increase.

Beyond contracts, the state is actively pushing local companies to take on more complex, higher-value work, previously dominated by large external players.

The focus on sustainable growth means the number of Sabahan vendors holding long-term contracts has jumped by 260% since 2021, ensuring stability for local businesses to invest in staff and assets.

SMJ Energy said the total anticipated contract value awarded to Sabahan companies stood at RM1.7 billion as of September.

Masidi, the state finance minister, emphasised that these gains directly translate into tangible benefits for the people of Sabah.

“When we see this kind of growth, it means more money staying in Sabah, more business opportunities for our local entrepreneurs, and crucially, more quality jobs for our Sabah youth.

“We are not just giving out contracts; we are building generational capability,” he said.