Growth hit by Sabah gas snag

January 6, 2019

Dateline 2018-11-28, Daily Express:

Malaysia’s gas exports have been suffering from severe disruption since the second quarter of 2018 following a production breakdown at the Kebabangan gas field in Sabah, according to Finance Minister Lim Guan Eng, recently.

Hence, he said, the country has not fully benefited from the rising oil prices in the past six months.

“Major repairs and assessment works are still ongoing and production is only expected to return to full capacity by the middle of next year the latest,” Lim said in a statement.
He highlighted that the supply disruption has severely affected gross domestic product (GDP) growth and petroleum income tax revenue received by the government.

For the third quarter of 2018, petroleum income tax revenue declined 27pc to RM2.79 billion from RM3.81 billion in the second quarter.

Malaysia investigates Chinese gas pipeline deals for fraud, possible corruption

July 20, 2018

Dateline 2018-06-07, Taiwan News:

Malaysia’s Anti-Corruption Commission has begun an investigation into two gas pipeline projects contracted to a Chinese company on suspicion of fraud and violation of contract terms.

Malaysia’s Finance Minister, Lim Guan Eng will head to Beijing to discuss the deals and other infrastructure projects with a mandate to potentially terminate some of the agreements, according to the Nikkei Asian Review.

Lim said that it was “highly suspicious” that around 88 percent of the cost of the two pipeline projects had been paid to the China Petroleum Pipeline Bureau (CPPB), despite only 13 percent of the work being done.

The Finance Ministry also alleges that the awarding of the contract did not follow protocol, leading to a case being filed by Malaysia’s Anti-Corruption Commission.