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NIK ZAFRI BIN ABDUL MAJID,
CONSULTANT/TRAINER
Email: nikzafri@yahoo.com, nikzafri@gmail.com
https://nikzafri.wixstudio.com/nikzafriv2

Kelantanese, Alumni of Sultan Ismail College Kelantan (SICA), Business Management/Administration, IT Competency Cert, Certified Written English Professional US. Has participated in many seminars/conferences (local/ international) in the capacity of trainer/lecturer and participant.

Affiliations :- Council/Network Member of Gerson Lehrman Group, Institute of Quality Malaysia, Auditor ISO 9000 IRCAUK, Auditor OHSMS (SIRIM and STS) /EMS ISO 14000 and Construction Quality Assessment System CONQUAS, CIDB (Now BCA) Singapore),

* Possesses almost 30 years of experience/hands-on in the multi-modern management & technical disciplines (systems & methodologies) such as Knowledge Management (Hi-Impact Management/ICT Solutions), Quality (TQM/ISO), Safety Health Environment, Civil & Building (Construction), Manufacturing, Motivation & Team Building, HR, Marketing/Branding, Business Process Reengineering, Economy/Stock Market, Contracts/Project Management, Finance & Banking, etc. He was employed to international bluechips involving in national/international megaprojects such as Balfour Beatty Construction/Knight Piesold & Partners UK, MMI Insurance Group Australia, Hazama Corporation (Hazamagumi) Japan (with Mitsubishi Corporation, JA Jones US, MMCE and Ho-Hup) and Sunway Construction Berhad (The Sunway Group of Companies). Among major projects undertaken : Pergau Hydro Electric Project, KLCC Petronas Twin Towers, LRT Tunnelling, KLIA, Petronas Refineries Melaka, Putrajaya Government Complex, Sistem Lingkaran Lebuhraya Kajang (SILK), Mex Highway, KLIA1, KLIA2 etc. Once serviced SMPD Management Consultants as Associate Consultant cum Lecturer for Diploma in Management, Institute of Supervisory Management UK/SMPD JV. Currently – Associate/Visiting Consultants/Facilitators, Advisors/Technical Experts for leading consulting firms (local and international), certification bodies including project management. To name a few – Noma SWO Consult, Amiosh Resources, Timur West Consultant Sdn. Bhd., TIJ Consultants Group (Malaysia and Singapore), QHSEL Consultancy Sdn. Bhd.

He is also currently holding the Position of Principal Consultant/Executive Director (Special Projects) - Systems and Methods, ESG, QHSE at QHSEL Consultancy Sdn. Bhd.* Ex-Resident Weekly Columnist of Utusan Malaysia (1995-1998) and have produced more than 100 articles related to ISO-9000– Management System and Documentation Models, TQM Strategic Management, Occupational Safety and Health (now OHSAS 18000) and Environmental Management Systems ISO 14000. His write-ups/experience has assisted many students/researchers alike in module developments based on competency or academics and completion of many theses. Once commended by the then Chief Secretary to the Government of Malaysia for his diligence in promoting and training the civil services (government sector) based on “Total Quality Management and Quality Management System ISO-9000 in Malaysian Civil Service – Paradigm Shift Scalar for Assessment System”

Among Nik Zafri’s clients : Adabi Consumer Industries Sdn. Bhd, (MRP II, Accounts/Credit Control) The HQ of Royal Customs and Excise Malaysia (ISO 9000), Veterinary Services Dept. Negeri Sembilan (ISO 9000), The Institution of Engineers Malaysia (Aspects of Project Management – KLCC construction), Corporate HQ of RHB (Peter Drucker's MBO/KRA), NEC Semiconductor - Klang Selangor (Productivity Management), Prime Minister’s Department Malaysia (ISO 9000), State Secretarial Office Negeri Sembilan (ISO 9000), Hidrological Department KL (ISO 9000), Asahi Kluang Johor(System Audit, Management/Supervisory Development), Tunku Mahmood (2) Primary School Kluang Johor (ISO 9000), Consortium PANZANA (HSSE 3rd Party Audit), Lecturer for Information Technology Training Centre (ITTC) – Authorised Training Center (ATC) – University of Technology Malaysia (UTM) Kluang Branch Johor, Kluang General Hospital Johor (Management/Supervision Development, Office Technology/Administration, ISO 9000 & Construction Management), Kahang Timur Secondary School Johor (ISO 9000), Sultan Abdul Jalil Secondary School Kluang Johor (Islamic Motivation and Team Building), Guocera Tiles Industries Kluang Johor (EMS ISO 14000), MNE Construction (M) Sdn. Bhd. Kota Tinggi Johor (ISO 9000 – Construction), UITM Shah Alam Selangor (Knowledge Management/Knowledge Based Economy /TQM), Telesystem Electronics/Digico Cable(ODM/OEM for Astro – ISO 9000), Sungai Long Industries Sdn. Bhd. (Bina Puri Group) - ISO 9000 Construction), Secura Security Printing Sdn. Bhd,(ISO 9000 – Security Printing) ROTOL AMS Bumi Sdn. Bhd & ROTOL Architectural Services Sdn. Bhd. (ROTOL Group) – ISO 9000 –Architecture, Bond M & E (KL) Sdn. Bhd. (ISO 9000 – Construction/M & E), Skyline Telco (M) Sdn. Bhd. (Knowledge Management),Technochase Sdn. Bhd JB (ISO 9000 – Construction), Institut Kefahaman Islam Malaysia (IKIM – ISO 9000 & Internal Audit Refresher), Shinryo/Steamline Consortium (Petronas/OGP Power Co-Generation Plant Melaka – Construction Management and Safety, Health, Environment), Hospital Universiti Kebangsaan Malaysia (Negotiation Skills), Association for Retired Intelligence Operatives of Malaysia (Cyber Security – Arpa/NSFUsenet, Cobit, Till, ISO/IEC ISMS 27000 for Law/Enforcement/Military), T.Yamaichi Corp. (M) Sdn. Bhd. (EMS ISO 14000) LSB Manufacturing Solutions Sdn. Bhd., (Lean Scoreboard (including a full development of System-Software-Application - MSC Malaysia & Six Sigma) PJZ Marine Services Sdn. Bhd., (Safety Management Systems and Internal Audit based on International Marine Organization Standards) UNITAR/UNTEC (Degree in Accountacy – Career Path/Roadmap) Cobrain Holdings Sdn. Bhd.(Managing Construction Safety & Health), Speaker for International Finance & Management Strategy (Closed Conference), Pembinaan Jaya Zira Sdn. Bhd. (ISO 9001:2008-Internal Audit for Construction Industry & Overview of version 2015), Straits Consulting Engineers Sdn. Bhd. (Full Integrated Management System – ISO 9000, OHSAS 18000 (ISO 45000) and EMS ISO 14000 for Civil/Structural/Geotechnical Consulting), Malaysia Management & Science University (MSU – (Managing Business in an Organization), Innoseven Sdn. Bhd. (KVMRT Line 1 MSPR8 – Awareness and Internal Audit (Construction), ISO 9001:2008 and 2015 overview for the Construction Industry), Kemakmuran Sdn. Bhd. (KVMRT Line 1 - Signages/Wayfinding - Project Quality Plan and Construction Method Statement ), Lembaga Tabung Haji - Flood ERP, WNA Consultants - DID/JPS -Flood Risk Assessment and Management Plan - Prelim, Conceptual Design, Interim and Final Report etc., Tunnel Fire Safety - Fire Risk Assessment Report - Design Fire Scenario), Safety, Health and Environmental Management Plans leading construction/property companies/corporations in Malaysia, Timur West Consultant : Business Methodology and System, Information Security Management Systems (ISMS) ISO/IEC 27001:2013 for Majlis Bandaraya Petaling Jaya ISMS/Audit/Risk/ITP Technical Team, MPDT Capital Berhad - ISO 9001: 2015 - Consultancy, Construction, Project Rehabilitation, Desalination (first one in Malaysia to receive certification on trades such as Reverse Osmosis Seawater Desalination and Project Recovery/Rehabilitation), ABAC Centre of Excellence UK (ABMS ISO 37001) Joint Assessment (Technical Expert)

* Has appeared for 10 consecutive series in “Good Morning Malaysia RTM TV1’ Corporate Talk Segment discussing on ISO 9000/14000 in various industries. For ICT, his inputs garnered from his expertise have successfully led to development of work-process e-enabling systems in the environments of intranet, portal and interactive web design especially for the construction and manufacturing. Some of the end products have won various competitions of innovativeness, quality, continual-improvements and construction industry award at national level. He has also in advisory capacity – involved in development and moderation of websites, portals and e-profiles for mainly corporate and private sectors, public figures etc. He is also one of the recipients for MOSTE Innovation for RFID use in Electronic Toll Collection in Malaysia.

Note :


TO SEE ALL ARTICLES

ON THE"LABEL" SECTION BELOW (RIGHT SIDE COLUMN), YOU CAN CLICK ON ANY TAG - TO READ ALL ARTICLES ACCORDING TO ITS CATEGORY (E.G. LABEL : CONSTRUCTION) OR GO TO THE VERY END OF THIS BLOG AND CLICK "Older Posts"


 

Showing posts with label PETRONAS. Show all posts
Showing posts with label PETRONAS. Show all posts

Monday, June 30, 2025

Putra Heights Blaze - From Tragedy to Transformation - Suggested Preventive Measures by Nik Zafri


Photo Credit : Adam Amir Hamzah/The Sun - News : Bernama

The Putra Heights pipeline explosion on April 1, 2025, left deep emotional and physical scars in its wake. Though miraculously no lives were lost, 150 people suffered injuries, many severely, and 538 residents were displaced, with homes, vehicles, and a sense of safety devastated in seconds. We extend our deepest sympathies to the victims and affected families, whose courage and resilience have been nothing short of inspiring.

While no single party is at fault, the incident has brought to light systemic gaps in how we plan, monitor, and protect critical infrastructure especially in light of climate shifts and urban development. It is now our collective responsibility to ensure that such an incident does not happen again.


Official Findings (What we know)


1) Cause of Explosion

A multi-agency technical report led by the Department of Occupational Safety and Health and supported by the Department of Minerals and Geoscience confirmed that soil subsidence directly beneath the pipeline caused the engine to shift over time (about 15.9 cm displacement), resulting from weak, waterlogged ground accumulated since installation in 2000. This led to stress fractures and ultimately a rupture, igniting the explosion and fire 


2) No Sabotage or Negligence

Selangor police affirm that investigations found no evidence of sabotage or deliberate negligence 


3) Timeline and Investigation

The executive summary and police review were finalized by June 26, and publicly released today June 30 after Cabinet review


4) Impact and Aftermath

  • Initial Explosion (April 1, 2025)
  • Occurred at 08:08 am (MST); flames reached up to 30 m and temperatures exceeded 1,000 °C

5) Casualties and Damage

  • No fatalities reported
  • 150 injured (some with severe burns or smoke inhalation) 
  • 538 people displaced; approx. 81 homes destroyed, 81 partially damaged, 57 affected, with others inspected for safety. Around 399 vehicles were damaged

6) Emergency Response

Firefighters fought the blaze for about 7.5 hours; Petronas remotely shut off valves to halt gas flow 

7) Air Quality

Air quality remained safe according to Dept. of Environment monitoring 

8) Preventive Measures

A special committee, including federal and state representatives, Petronas, and technical experts, will frame long-term regulations and remediation strategies to prevent recurrence 


The explosion was a technical failure caused by prolonged ground subsidence not due to sabotage or human neglect. Authorities are now focusing on prevention through enhanced monitoring and regulation.


MY SUGGESTED PREVENTIVE MEASURES


1. Enhanced Geotechnical Monitoring

  • Soil Movement Sensors: Install long-term geotechnical instrumentation (e.g., inclinometers, piezometers, settlement plates) along pipeline corridors—especially in soft or reclaimed soils.
  • Frequent Soil Surveys: Require periodic subsurface soil investigations in flood-prone or clayey areas to detect early signs of subsidence or liquefaction risk.
  • Slope Stability Checks: Especially at elevated or hilly routes where stress transfer from terrain shifts may affect pipeline integrity.


2. Stricter Pipeline Design and Installation Standards

  • Flexibility in Joints: Introduce expansion joints or flexibility loops in design for pipelines in unstable ground to accommodate minor ground movement.
  • Deeper Embedment and Backfilling Standards: Mandate proper trench design, compacted backfilling, and waterproofing to prevent erosion or waterlogging.
  • Use of Corrosion-Resistant and Fatigue-Resistant Materials: Upgrade material standards for pipelines passing through high-risk zones.


3. Improved Risk Mapping and Zoning

  • Integrated Pipeline Risk Mapping (IPRM): Combine geological, hydrological, and construction data to map pipeline risks across Malaysia’s network.
  • Buffer Zones and No-Build Areas: Enforce regulated setback distances from pipelines, especially in residential or high-activity areas.
  • Real-Time GIS-based Alerts: Implement GIS-linked monitoring with AI-based anomaly detection for pipeline behavior and surrounding soil conditions.


4. Regulatory and Planning Reforms

  • Revise Existing Standards: Update Malaysian Standards (MS) or PETRONAS Technical Standards (PTS) related to pipeline structural safety and ground stability. (Important)
  • Mandatory Reevaluation: Require existing pipeline operators to reassess their old networks, especially pipelines over 20 years old.
  • Third-Party Audits: Enforce independent audit and certification of pipeline integrity at defined intervals (e.g., every 5 years).


5. Community Engagement and Emergency Preparedness

  • Public Awareness Campaigns: Educate residents and local governments near pipelines on signs of danger (e.g., ground cracks, gas smell, water seepage).
  • Evacuation and Fire Drill Protocols: Standardize rapid response SOPs for towns located within 300–500 m of major pipelines.
  • Community Alert Systems: Use SMS, sirens, and apps to broadcast real-time updates in case of pipeline incidents.


6. National Database and Pipeline Integrity Management System (PIMS)

  • Digital Registry of Pipelines: Centralized data on location, installation date, soil profile, maintenance history, and inspection logs.
  • Machine Learning for Failure Prediction: Use AI to assess failure probabilities based on age, terrain, and historical stress records.
  • Annual Reporting Obligations: Pipeline owners to submit condition reports annually to DOSH or the Energy Commission.


7. Climate Resilience Integration

  • Hydrogeological Resilience: Ensure pipelines are designed to withstand increasing rainfall, flooding, or underground water table rise due to climate change.
  • Green Infrastructure: Promote drainage upgrades, rain gardens, or dewatering measures to manage moisture near buried pipelines.


CONCLUSION

The Putra Heights incident was more than an explosion it was a wake-up call. One that reminds us that beneath every pipeline, every system, are lives, homes, and communities. Let this tragedy not be remembered for its flames, but for the reforms it sparked.

We stand in solidarity with every victim and every family affected. May their experience not be in vain, but serve as the foundation for a safer, more resilient Malaysia. Let us turn sorrow into resolve and ensure that from this painful moment, lasting safety, compassion, and accountability emerge.

Tuesday, April 01, 2025

WHAT COULD CAUSE GAS PLANT TO EXPLODE - Nik Zafri

The following is just a personal opinion.

1) Possible Causes of Plant Gas Explosions
1.1) Gas Leak and Ignition Source
a) A leak from damaged pipes, flanges, valves, or storage tanks can lead to an explosion if an ignition source (like sparks, static electricity, or open flames) is present,
b) Methane, propane, butane, and hydrogen are highly flammable gases that can cause explosions when mixed with air at the right concentration.
c) Overpressure or Pipe Rupture
Excessive internal pressure due to failure of pressure relief systems can rupture pipes or tanks, leading to explosions.
d) Corrosion and Material Degradation
Rust, stress corrosion cracking, or chemical exposure can weaken pipes over time, making them prone to failure.
e) Extreme Temperatures and Global Warming Effects
High ambient temperatures can increase pressure in gas pipelines,
f) Auto-ignition
Auto Ignition will depend on the temperatures which varies by gas type:
- Methane: ~537°C (999°F)
- Propane: ~470°C (878°F)
- Hydrogen: ~585°C (1,085°F)
If a leak occurs in extremely hot conditions, and there's no ventilation, accumulated gas could reach self-ignition temperatures.
g) Sabotage and Malicious Acts
Deliberate damage (e.g., cutting pipelines, tampering with safety systems, or introducing contaminants) can lead to explosions.
h) Cyberattacks
It has been known that cyberattacks on control systems in modern gas plants may also manipulate pressures, valves, and emergency shutdowns, creating hazardous conditions.
2) Piping Used in Gas Plants
a) Materials
- Carbon Steel & Stainless Steel: Used for durability and pressure resistance.
- HDPE and Composite Pipes: Used in some non-pressurized applications.
b) Coatings and Covering
Pipes are often buried or insulated to protect against weather and temperature variations.
- Corrosion-resistant coatings (e.g., epoxy) are applied.
- Explosion-proof enclosures may be used in hazardous areas.

Thursday, September 05, 2024

SINKHOLES : KLCC TWIN TOWERS IS UNSAFE



I find it perplexing that some individuals, claiming as a "technical experts," are claiming that the entirety of Kuala Lumpur, and implying the KLCC Twin Towers, is unsafe. First of all, I have never encountered this (these) person (s) in any of the major projects I have been directly involved in. (We construction people do know one another)


(And yes, as many of you might have guessed, I am one of the key individuals who worked on the construction of the Twin Towers, the LRT tunneling from Ampang Park to Masjid Jamek, and several other significant projects.)

During the construction of the Twin Towers, we were engaged by numerous professional institutions and the relevant government agency, including the The Institution of Engineers, Malaysia (IEM), DOSH Malaysia, Public Works Department Malaysia [Jabatan Kerja Raya Malaysia], Dewan Bandaraya Kuala Lumpur, and many others.

We thoroughly explained all the safety measures taken, such as spending millions on cavity grouting (thanks to BAUER Group) to fill any possible underground voids on the construction area.

Unfortunately, some individuals, including this person and others I've encountered, are quick to criticize without ever mentioning the extensive/expensive work done like cavity grouting, or understanding the challenges faced by those involved in the construction. Reasons : They were never involved in the construction of these mega projects.

They claimed to be "technical experts," yet their credibility are disputed by the university itself. There is a reason for every aspect of the building's design, from the bustles to the skybridge and the complex piling process—and so much more details I can't fully elaborate on here as it will be time-consuming.

I'm not speaking on behalf of the many engineering consultants involved, KLCC Group of Companies, or the focal point - end-user PETRONAS, but I am concerned about the unprofessional opinions being circulated by such individuals, which are gaining undue popularity based on pseudo-facts.

We have here in KL - two of the tallest skyscrapers. If you've never seen the feasibility and viability study for 118, I'm certain you haven't seen the one for KLCC Twin Towers either.

While we honor the victim of the Masjid India incident and acknowledge the time and sacrifices made by our SAR team, who left their families to respond, it does not mean that everyone should use this tragic event to gain popularity.

Do also take your time to read :

https://nikzafri.blogspot.com/2024/08/when-sinkholes-happen-in-urban-areas.html

Thursday, April 11, 2024

Give more chances to Bumiputera companies in the RE field

 Link to Article

Solarvest Energy was recently appointed by Gentari Renewables to install solar power systems at over 300 Petronas petrol stations nationwide

Tuesday, April 9th, 2024 at Business | News

Numerous Bumiputera companies possess the necessary qualifications and capabilities to complete the project effectively

by SHAUQI WAHAB & VEISHNAWI NEHRU

AS MALAYSIA endeavours to strengthen its renewable energy (RE) capacity, the discourse surrounding integrating Bumiputera companies into this sector has grown increasingly prominent.

This article delves into the ramifications of excluding Bumiputera entities from significant RE contracts against the backdrop of Solarvest Energy Sdn Bhd’s recent appointment to install solar power systems at over 300 Petroliam Nasional Bhd (Petronas) petrol stations nationwide.

While some argue for selecting companies purely on merit, others question how inclusive the procurement process really is. The debate highlights the push for Bumiputera involvement, concerns about the economic effects and the challenge of balancing merit with inclusivity in Malaysia’s RE contracts.

Advocacy for Bumiputera Inclusion in the RE Sector

Malay Chamber of Commerce Malaysia (DPMM) president Norsyahrin Hamidon said Petronas has consistently provided significant opportunities to Bumiputera companies in the oil and gas (O&G) industry over the past several decades.

“While we are not aware of the financial and commercial aspects of the Petronas petrol stations’ solar power contract awarded to Solarvest, the technical aspects of it from design to installation, commissioning and maintenance are straightforward.

“Numerous Bumiputera companies possess the qualifications necessary to bid successfully for such projects and deliver them effectively,” he told The Malaysian Reserve (TMR).


Norsyahrin says it is important for Bumiputera players to closely follow, monitor and participate in all Gentari Renewables’ present and future projects (Pic courtesy of Norsyahrin)

Norsyahrin explained that, as is generally known, 30% of the list of turnkey or engineering, procurement and construction-rated companies in the country is Bumiputera-owned and including those Sustainable Energy Development Authority-registered (SEDA) solar photovoltaic (PV) service providers, there would be at least 60 companies.

“In other words, there are many Bumiputera companies that have the merits and capabilities necessary to be included in the bid process.

“What DPMM takes into consideration is that in the long run, Gentari Renewables Sdn Bhd will be a major player in the renewable energy sector, in particular the solar PV power installations.

“Gentari Renewables, a subsidiary of Gentari Sdn Bhd, is planning to plant up to 30 gigawatts-peak (GWp) of solar plants globally,” he added.

Norsyahrin stated that Petronas’ self-consumption requirements (not just the petrol stations but all Petronas plants within the petroleum industries) are already large, and in the next few decades may hit some 15GWp to 20GWp capacity requirement in Malaysia alone.

“It is, therefore, important for Bumiputera players in the energy sector and solar PV industry, in particular, to closely follow, monitor and meaningfully participate in all Gentari Renew- ables’ present and future projects.

“We would like to see that Gentari Renewables also act like the Japanese ‘sogo shosha’ to facilitate Malaysian companies especially Bumiputera to penetrate and have a strong foothold in the global RE and solar energy markets,” he said.

Commenting further, Norsyahrin said DPMM is hopeful that after several rounds of discussion between DPMM and Gentari, there may be a better form of collaboration between Gentari Renewables and Bumiputera players in the industry including improving Bumiputera technical, commercial and financial capacities to participate in Gentari Renewables various energy transition projects in the future.

“We are positive that through the proposed collaboration framework being pursued now any unfair challenges and obstacles. If there are any it can be effectively addressed.

“DPMM will be facilitating and coordinating with Persatuan Industri Tenaga Boleh Baharu dan Alam Sekitar and Malaysian Energy Professionals Association as well with other associations in the RE industry to maximise their members’ participation in Gentari,” he explained.

Norsyahrin further stated that DPMM proposes a specific allocation for solar power works within the National Energy Transition Roadmap’s (NETR) target of 60GWp including what’s planned by Petronas or Gentari Renewables.

“The gap in business activity, productive capacity and profitability (measured by gross operating surplus) between Bumiput- era and non-Bumiputera is simply too big and is dangerously unsustainable.

“Addressing this gap is essential, otherwise, continued inequality could jeopardise the sustainability of the Malaysian economy as a whole and create political challenges,” he said.

Addressing the issue, a representative from United Solar Energy (M) Sdn Bhd said the company was not invited to be part of the Bumiputera candidates for the contract.

The representative also commented that a minimum equity by Bumiputera should be incorporated if they are serious about supporting Bumiputera businesses.

“Also, those who participated in the tender should be ensured to have Bumiputera equities only then sufficient opportunities for Bumiputera companies able to compete fairly for the said contract,” the representative said.

TMR tried to get comments from other Bumiputera industry players but was unable to get a response at press time.

Bumiputera Exclusion’s Economic Impact on RE Contracts

Universiti Teknologi MARA Faculty of Business and Management Department of Economics and Financial Studies senior lecturer Dr Mohamad Idham Md Razak said Gentari Renewables merit-based appointment of Solarvest Energy for their RE project can have a positive ripple effect on Malaysia’s competitiveness in this sector.

“By prioritising qualifications over ethnicity, they set a precedent for attracting the most skilled and experienced firms, fostering innovation, efficiency and ultimately driving down project costs.

“This not only benefits Gentari Renewables with a potentially successful project but also sends a strong signal to other players, encouraging them to focus on building strong technical capabilities to compete effectively in the growing RE market,” he told TMR.

Gentari Renewables’ decision could potentially have significant economic repercussions across various fronts within the RE sector, Mohamad Idham says

Besides, Mohamad Idham said the exclusion of Bumiputera players from the solar power system installation contract at Petronas’ stations could have detrimental effects on the socioeconomic development and inclusivity goals set by the government.

By excluding them from such contracts, he said it would cause risks of widening the economic gap and impede their progress toward economic empowerment.

“Furthermore, this exclusion undermines the government’s commitment to fostering inclusivity and diversity in economic opportunities, hindering efforts to build a more equitable society and achieve sustainability,” he said.

Commenting further, Mohamad Idham stated Gentari Renewables’ decision could potentially have significant economic repercussions across various fronts within the RE sector.

He believed that in terms of employment opportunities, the exclusion of Bumiputera players might lead to a loss of jobs and hinder the development of skilled labour within these communities, thereby impacting overall employment rates and exacerbating socioeconomic inequalities.

“Secondly, regarding revenue distribution, the absence of Bumiputera involvement may concentrate wealth and economic benefits within certain segments of society, potentially leading to disparities in income distribution and hindering broader economic development.

“Finally, in terms of industry growth, excluding Bumiputera players could impede the sector’s expansion by limiting diversity

and innovation, ultimately slowing down the pace of technological advancement and market competitiveness within the renewable energy industry as a whole,” he said.

Balancing Merit and Inclusivity

Meanwhile, weighing in on the matter, Noma SWO Consult associate partner and Gerson Lehrman Group’s (GLG) council member Nik Zafri Abdul Majid highlights the advantages and potential drawbacks of such a move.

One of the key points raised by Nik Zafri is the ambiguity surrounding the term “merit” which he questioned what criteria are used for that.

“While turnkey has been known for several advantages such as streamlined project management and reduced client responsibility, there are several disadvantages as well along the way,” he noted.

Nik Zafri said although turnkey contracts streamline project management, reduce client responsibility and offer convenience, they also pose challenges such as limited client control over project execution and potential disputes over project scope and performance standards.

He emphasised that awarding contracts solely based on merit could have unintended consequences.

“If merit criteria are narrowly defined or perceived as preferential treatment favouring large firms, it could be of disadvantage to smaller or local companies, including Bumiputera companies.

“Furthermore, if merit is not inclusive of diverse perspectives, backgrounds and expertise, it could result in a lack of diversity among contractors and suppliers,” he commented.

To address these concerns and promote inclusivity and competitiveness in the RE sector, Nik Zafri suggested implementing transparent and inclusive tender processes which include setting higher quotas for Bumiputera participation, providing incentives for Bumiputera companies and fostering partnerships between small and large firms to transfer knowledge and build capacity within the Bumiputera industry.

While the decision to award contracts based on merit aims to promote fairness and efficiency, it also raises questions about inclusivity and socioeconomic impact.

Hence, Nik Zafri believed that balancing these considerations is crucial for fostering a vibrant and competitive RE sector in Malaysia.

“If DPMM believes that tender processes are biased or unfair, they may be less inclined to participate, leading to reduced competition for contracts,” he said.

Nik Zafri added that Bumiputera small and medium enterprises (SMEs) are particularly vulnerable to the effects of perceived preferential treatment.

“If tender processes are seen as favouring established players, Bumiputera SMEs may struggle to compete, limiting their growth opportunities and stifling entrepreneurship in the sector.

“Thus, to mitigate these economic implications, it’s crucial for governments and organisations overseeing tender processes to prioritise transparency, accountability and fair competition,” he commented.