PETALING JAYA: A state government adviser has hailed chief minister Hajiji Noor’s move to reclaim the state power company Sabah Electricity Sdn Bhd (SESB) from federal control.
The company was sold to Tenaga Nasional Berhad (TNB) in 1998 after mismanagement led to the state incurring financial losses. TNB currently has a 83% stake in SESB.
John Lo, a member of the Sabah Economic Advisory Council, said electricity is central to Hajiji’s overall strategy in developing industries such as mining, oil and gas, the industrial tree plantation and silica processing plants.
These industries, Lo said, could bring in billions in potential revenue for the state.
“And Hajiji knows that without proper and sufficient control of Sabah’s own power generation for the heavy and power-intensive industries, the bulk of foreign investment coming in will have to be put on hold,” he told FMT.
Lo also dismissed the notion that Hajiji’s push for the state to regain control of SESB was “too ambitious”, noting the stability which the latter has ushered in since taking control of the state two years ago.
He said under the current administration, investments have doubled. Lo said as of September 2021, a total of RM48 billion have been poured into Sabah.
“Therefore, with continued political and economic stability, we can see these plans being implemented.
“The fact of the matter is that Hajiji wants to give the bulk of the control back to Sabahans as key decision makers of their own fate.”
Last month, Hajiji said the state government will set up an energy commission so that the electricity supply regulatory authority can be transferred from Putrajaya to Sabah.
Once that is completed only then can the state reclaim SESB with zero liabilities once the SESB transformation plan is completed within five to seven years.
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