Esteel Enterprise Sabah must have minimum 80 pct M’sian workforce, majority Sabahans

by · Borneo Post Online
Datuk Ewon Benedick — Bernama photo

KOTA KINABALU (Dec 17): At least 80 per cent of the workforce in Esteel Enterprise Sabah Sdn Bhd must comprise Malaysians, with Sabahans forming the bulk of that number, said Datuk Ewon Benedick.

The Industrial Development, Entrepreneurship and Transport Minister said this is in line with the Sabah First aspiration and the state government’s policy to prioritise local employment.

Responding to questions from Darau and Sindumin assemblymen on whether there are guarantees that Esteel will prioritise the hiring of Sabahans and provide training, Ewon said one of the key conditions set by the Malaysian Investment Development Authority (Mida) for the approval of a Federal Manufacturing Licence (FML) is that at least 80 per cent of a company’s full-time workforce during operations must be Malaysians.

“Following this policy, the state government has further stipulated that at least 80 per cent of that minimum local workforce must consist of Sabahans,” he said in his winding up speech at the State Legislative Assembly (DUN).

He said the approach is aimed at strengthening employment opportunities for Sabahans, while contributing to human capital development and improving local socioeconomic conditions.

“In this context, Esteel Enterprise Sabah Sdn Bhd is committed to prioritising the recruitment of Sabahans to fill the job opportunities created. This ongoing commitment reflects the company’s support for the Sabah First aspiration and ensures that the benefits of investment are enjoyed more holistically by the people of this state through sustainable, high-impact employment,” he said.

Ewon added that to further strengthen human capital development, his ministry requires investors to provide training programmes for local workers so that investments also contribute to skills enhancement and competency development among Sabahans.

“In line with this, Esteel has expressed its commitment to providing training opportunities for Sabahans to ensure the local workforce is well-prepared and able to meet the operational needs of its plant,” he said.

He noted that the emphasis on investor-led training has already borne fruit, citing two major investors, SK Nexilis and the Kibing Group, which have sent 13 local workers to South Korea and China, respectively for intensive training to prepare them for high-technology operations at their facilities in Sabah.

Meanwhile, responding to a query from the Likas assemblyman on the long-abandoned Sabah Trade Centre (STC) building, Ewon said the STC in Likas is a state-owned asset under the supervision of his ministry through the Department of Industrial Development and Research (DIDR).

“At present, the STC building is not suitable for use due to the deterioration of its structure, which makes it unsafe for occupation,” he said.

As such, he said the state government, through his ministry, is studying several redevelopment options for the STC site, including a proposal to redevelop it as a new ministry office and an entrepreneurship activity centre to support the empowerment of local entrepreneurs.

On a question raised by the Senallang assemblyman, Ewon said his ministry, through the Sabah Ports Authority (LPPS), will play a crucial role in supporting and integrating port planning for the development of new industrial parks across Sabah.

This includes the Blue Economy Industrial Park in Limau-Limauan, Kudat, which will be developed by the Sabah Economic Development Corporation (Sedco).

He said port development planning will be incorporated into the industrial park master plan study to be undertaken by Sedco in the near future, noting that industrial growth is expected to significantly increase demand for specialised port services.

Ewon also acknowledged a proposal from the Sebatik assemblyman on the need to upgrade public jetty facilities for the comfort and safety of Sebatik residents.

“In this regard, the ministry, through the Sabah Ports and Wharves Department, has included plans to construct a public jetty at Kampung Mentadak, Pulau Sebatik, under the 13th Malaysia Plan,” he said.

Touching on POIC Lahad Datu, as raised by the Silam assemblyman, Ewon said development at the industrial park not only focuses on providing world-class infrastructure, but also places strong emphasis on local workforce participation and development.

To date, 43 investor companies are operating in POIC Lahad Datu, creating 1,509 job opportunities, of which 1,246 are Sabahans.

“Of that number, 1,221 are local residents of Lahad Datu, while 13 are Malaysians from other states. The remaining 250 are expatriates,” he said.

He added that POIC Logistics Sdn Bhd, which manages logistics operations within the POIC area, employs 96 staff, all of whom are Sabahans, with 90 being locals from Lahad Datu.

“This clearly shows that the majority of job opportunities at POIC Lahad Datu have been taken up by Sabahans, particularly local residents. As such, POIC Lahad Datu has served as an important platform for job creation for the local community,” he said.

To further strengthen these efforts, Ewon said his ministry fully supports proposals to establish strategic collaborations for the setting up of a training institution or Technical and Vocational Education and Training (Tvet) centre in Lahad Datu.

He said the proposed training centre would allow technical and skills training to be tailored directly to the needs of industries at POIC, including logistics, manufacturing, processing, energy and related sectors.

“This approach will not only enhance the employability of local talent, but also reduce long-term dependence on external and expatriate labour,” he added.

Esteel Enterprise Sabah Sdn Bhd Ewon Benedick lead