KUALA LUMPUR: The protracted slump in crude oil prices has forced many oil and gas (O&G) related companies around the globe to cut their development expenditure and reduce their workforce — but recruitment consultant firm Hays plc said there are still job opportunities available — especially for locals who have the right fit.
Hays oil & gas business director Mike Wilkshire, in an email response to The Edge Financial Daily, said he is still seeing job opportunities in the O&G industry.
“For example, proposal engineers are needed. Engineering companies that are struggling to find new projects are adding local talent who have experience working on large complex projects,” he said.
Wilkshire said both senior and lead process engineers were in demand, as well as senior bid engineers with good experience.
“Local Malaysian candidates are particularly sought after for these positions as they have good working knowledge of creating bids and tenders that meet the criteria of local standards and specifications,” he said.
And companies that had clinched projects previously are showing a keen interest in hiring local talent wherever possible, he added.
However, he could not provide the exact number of Malaysians working in the O&G sector presently, but said the Hay’s pre-oil price slump data — as provided in its O&G Global Salary Guide — showed that annual salaries in the industry range from US$46,800 (RM168,480) to US$137,200. The overall average annual salary — inclusive of local and expatriates — stands at US$60,700, according to Hays.
“Talent from Europe, the US and Australia are also keen to explore suitable opportunities in Malaysia,” said Wilkshire.
Meanwhile, AmResearch Sdn Bhd economist Patricia Oh Swee Ling said based on guidance from the Performance Management & Delivery Unit (Pemandu), the key takeaway for the O&G and energy sectors is that it is labour intensive, requiring an additional workforce of 52,300 by 2020.
Oh said according to Pemandu, the country’s economic expansion and growing middle class will spur progressive additional demand for energy.
“As such, the sector is expected to grow in tandem with the anticipated growth in energy consumption,” she said via email.
Pemandu, when asked if it is concerned that the fall in oil prices has led to spending and jobs cuts, said the petroleum industry had been in Malaysia for over 100 years.
“During this time, there have been many periods of upturns and downturns in oil and gas prices. Although the fall in oil prices has been significant in the past year, it is far from unprecedented. This is an opportunity for a re-balancing of the industry to focus more on ‘sweating the asset’ and ensuring the best possible return on capital invested,” it said.
Pemandu explained that the historical swings in oil prices were part of the reason why O&G companies were typically well-capitalised.
“This allows them to ride such swings out. While there will doubtless be some scrutiny on projects [to ensure they are viable in the new price environment], this is just good business practice. While individual companies involved in the sector have to make their own decisions in regard to staffing levels, it is unlikely that the effect of oil prices on employment is large enough to affect the broader economy,” it added.
On whether there was enough activity in other economic sectors to cushion the impact of the drop in oil prices and keep Malaysia on a firm footing for economic growth, Pemandu said there was more than enough.
“This is evidenced by other sectors increasing as a share of Malaysia’s economy over the past half-a-dozen years (when oil prices were high). Oil, gas and energy constituted an estimated 16.7% of gross domestic product as at end-2014.
“We should note that Malaysia’s movement to become a developed economy also implies moving away from being a resource-dependent economy,” it said.
This article first appeared in The Edge Financial Daily, on May 25, 2015.