KUALA LUMPUR – Shell Malaysia is expected to reduce around 250 to 300 roles, or around 2% progressively over two years, as the oil and gas company strives to have a “simpler organisation”.
Its chairman Datuk Iain Lo said the move is part of the firm’s global reshaping initiative in the present challenging business landscape.
“This reorganisation focuses on improving efficiency to become a more streamlined, competitive and collaborative organisation in today’s challenging landscape.
Shell Malaysia will see growth in jobs in certain areas of its business nationwide as well as reductions in others, with the largest impact felt in upstream business, which will reduce between 250-300 roles,” he said in a statement today.
Still, Lo said Malaysia will remain an important country for the Shell Group and that exploration and production will continue to be a critical business for the company.
He said that the upstream business in Malaysia has been identified as one of Shell’s nine core performance units worldwide.
“The organisational changes that we are embarking on are crucial for the business to reduce complexity, drive stronger and end-to-end connectedness to make it easier for assets and ventures to focus on delivery,” he said.
He said most of Shell Malaysia Upstream staff will relocate to the principal office in Miri, Sarawak as part of the company’s exercise.
The company will continue to maintain an office in Kota Kinabalu for the downstream businesses and some upstream support.
“There are no changes to Shell’s offshore deep-water operations in Sabah. Menara Shell in Kuala Lumpur will continue to host Shell Malaysia Downstream and corporate entities,” Lo said, adding that Shell business operations centre will continue in Wisma Shell in Cyberjaya.
“We realise that this is difficult news for the impacted staff, and these are never easy decisions. However, change is a necessary one to ensure that Shell in Malaysia remains competitive, stays resilient in challenging times and is in a strong position to capture opportunities in the energy transition.
“Shell is committed to proactively engaging staff throughout the process and ensuring fair treatment in accordance with our values and with Malaysia’s employment laws and regulations,” he further added.
Shell Malaysia intends to grow its downstream marketing businesses to reinforce its retail and lubricants leadership positions in the country, he added.
“Shell Business Operations in Malaysia, which has clientele across more than 25 countries will continue to grow to manage increasing demand from businesses from Shell companies in other countries,” he said.
“Shell’s Middle Distillate Synthesis (Shell MDS) plant in Bintulu, continues to be a niche business for Shell in Malaysia, producing a range of high-quality finished products including GTL waxes, drilling fluids and chemicals.
“Shell continues to maintain a network of Malaysian retailers, distributors, suppliers, across our broad value chain, all of whom continue to be indirectly in our employ, as we seek to deliver high quality products and services to all our customers across Peninsular Malaysia, Sabah and Sarawak.” – The Vibes, January 13, 2021
