Petronas prioritises skill redeployment over layoffs

Amidst a changing energy landscape, Petronas is investing in its core portfolio and cleaner energy production.
By: | June 12, 2023

In the face of challenging conditions and the global shift towards cleaner energy, Malaysian energy company Petronas has dismissed employee layoffs as a priority. Instead, Tengku Tan Sri Muhammad Taufik, President and Group CEO of Petronas, emphasised the importance of skill redeployment in areas relevant to new businesses.

He said, “I do not anticipate employee layoffs. I am not someone who carries out such actions.”

Petronas will continue to invest in its core portfolio and cleaner energy production. While recognising the increasing demand for cleaner energy sources, Tengku Muhammad Taufik highlighted the enduring relevance of hydrocarbon usage, which is projected to make up 40-45% of the global energy mix over the next 30 years.

“We see the energy mix still consisting of 40-45% oil and gas. Whether you like it or not, your mobile phone contains plastic components (made from chemicals sourced from oil and gas), and so do cars,” he explained.

Petronas maintains its commitment to prudent and disciplined financial management, ensuring the required energy security today while facilitating a far and responsible transition. The organisation will focus on delivering its three-pronged growth strategy and supporting Malaysia’s aspiration of achieving net zero carbon by 2050, which will involve managing financial commitments and debt obligations prudently.

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Additionally, Petronas is exploring new business areas beyond its traditional scope to align with the global transition towards clean energy. Tengku Muhammad Taufik announced a target of achieving a 30% revenue contribution from non-traditional businesses by the end of the decade, reported New Straits Times.