Sabah’s energy shift must be inclusive: Sabah Energy Corporation
- SOGCE ADMIN
- Jul 11
- 3 min read
Published on: Friday, July 11, 2025
By: Crystal E Hermenegildus
Kota Kinabalu: A just energy transition must ensure that the shift toward cleaner energy does not leave communities behind, said Sabah Energy Corporation (SEC) Chairman Datuk Annuar Ayub.
He said that while the world is undergoing a major energy transformation, progress must be inclusive — one that protects livelihoods, enhances quality of life, and empowers communities across Sabah.
“We all agree that the world is transitioning. But a just energy transition must ensure that, as we shift towards cleaner energy, it does not leave communities behind,” Annuar said.
He said this in his keynote address at the recent 12th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE), held at the Sabah International Convention Centre (SICC).
As the largest natural gas supplier in Sabah, and one of the largest in Malaysia, SEC plays a pivotal role in driving this transformation. According to Annuar, the Corporation powers 86 percent of Sabah’s electricity, supports over 45 industrial customers, and serves more than 500,000 households.
Yet, he said SEC’s impact extends beyond statistics — to powering the potential of youth, rural towns, and rising cities.
Annuar stressed that natural gas remains a crucial transitional fuel in ensuring a stable and cleaner alternative to coal and diesel. It is especially vital in maintaining essential services such as hospitals, schools, and homes.
He cited Esteel’s green steel complex- an anchor project enabled by natural gas- as an example of how energy resources can catalyze large-scale industrial development and job creation.
“But we must be honest: this bridge cannot be long. It must lead us forward,” he said, adding that SEC is aggressively reinvesting gas-derived value into renewable energy.
Annuar outlined several renewable projects currently spearheaded by SEC: A 15MW solar project in Tuaran is in advanced stages, A RM4billion hydroelectric project in Ulu Padas, Tenom, expected to contribute 15 percent to Sabah’s grid capacity, integrates biodiversity offset plans such as floating solar and nature-positive engineering.
Moreover, a 100MW utility-scale wind power project in Kudat is nearing the end of a detailed feasibility study. Once operational, it would mark Malaysia’s first wind energy source, significantly reducing fossil fuel reliance.
SEC is also the lead proponent of the wind energy initiative and is working closely with technical partners to ensure that development aligns with the interests of local communities.
“We prioritise respectful engagement and work collaboratively with village communities..this is not mere compliance. This is commitment,” Annuar said.
These initiatives align with the SE-RAMP 2040 goal of having 35 per cent of Sabah’s energy from renewable sources by 2035.
Annuar said SEC’s strategy goes beyond corporate social responsibility-it is about embedding ESG values into every layer of decision-making.
The corporation has built partnerships with major entites including Petronas, Maybank, Cimb, Ambank, and Sabah Development Bank, as well as NGOs and civil society.
On the ground, SEC is actively empowering Sabahans through the Skill Enchancement and Career Advancement (SECA) programme.
The initiative targets underprivileged youth from B40 backgrounds, providing them with real work experience and allowances, with many securing employment post-training.
“Energy must empower. Otherwise, it is incomplete,” he said.
SEC also supports local schools, clinics, and disaster preparedness efforts, reinforcing its commitment to equitable development.
Reinforcing its commitment to sustainability, SEC holds a 30 percent stake in the Tabin Wildlife Reserve initiative. This partnership supports rewilding efforts and the conservation of ecological corridors.
“We believe that energy development and ecological preservation can and must coexist,” he said.
Annuar said Sabah’s energy transition must not mirror Western Models, but instead be localized, just,and inclusive to ensure every village and community shared its benefits.
“At SEC, we believe we are not just powering homes. We are powering heart and hope.
“The future is not something we wait for. It is something we engineer with care, courage and collective purpose,” he said.
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