THE multibillion-ringgit investment in Pengerang must now translate into measurable operational and financial improvements, particularly as PRefChem continues to face losses, said industry expert Datuk Seri R. Jeyenderan.
Commenting on a recent report on the financial performance of PRefChem, the chief executive officer of Maritime Network Sdn Bhd said the performance of the Pengerang Integrated Complex (PIC) should be assessed based on clear and transparent indicators rather than broad assurances.
“Over the next few years, Malaysians should see higher and more consistent plant utilisation, fewer unplanned shutdowns, narrowing losses, positive operating cash flow and, ultimately, a competitive return on the capital invested,” said Jeyenderan, who has more than 30 years of experience in the shipping industry.
In a statement, Jeyenderan said the benefits should extend beyond the financial performance of the complex, particularly in strengthening Malaysia’s domestic fuel security and diversifying crude sourcing.
Jeyenderan said stronger exports, quality employment and greater opportunities for Malaysian maritime, logistics and supporting service companies should also form part of the project’s broader economic contribution.
“There should be a transparent performance scorecard showing, year by year, what has improved and whether the project is moving towards its intended economic objectives,” he said.
Jeyenderan said such a scorecard would enable the public and stakeholders to better assess whether the substantial investment in Pengerang was delivering the expected economic returns.
He said continued investment could be justified if it was supported by clear operational improvements, financial targets and a credible pathway towards sustainable profitability.
“However, if billions more are committed while key operational and financial targets remain undisclosed, Malaysians will be justified in asking whether the investment is genuinely being turned around or simply being carried forward,” he said.
Beyond operational and financial performance, Jeyenderan said strong governance and transparency across the wider Pengerang ecosystem would also be essential to ensuring the value of the investment was fully realised.
He said the governance framework should include regular independent audits and reconciliation of petroleum cargo movements across the Pengerang ecosystem, with clear accountability among Customs, terminal operators, cargo owners and other relevant agencies.
He said any discrepancies involving cargo quantity, classification, ownership or tax treatment should be investigated promptly and resolved through a documented process, adding that stronger oversight would help protect government revenue while maintaining confidence in Pengerang as a strategic petroleum hub. – September 1, 2026
