Education

Sabah turns oil profits into school aid for poor students

Over 2,000 children from poor families in Pitas to benefit from welfare programmr

Updated 1 year ago · Published on 11 Jun 2025 10:49AM

Sabah turns oil profits into school aid for poor students
The programme will benefit students from four primary and three secondary schools in the district. - June 11, 2025

by Jason Santos

SIXTEEN-year-old Riolwen Paul, the son of a farmer in one of Sabah’s most remote districts, says he does not receive regular school pocket money. 

On days when there are co-curricular activities, he often must go without it, said the Form Four student from Pitas.

But starting this month, Riolwen is among 2,617 students in Pitas who will receive a smart card worth RM100 monthly as part of a new state-backed initiative aimed at easing the cost of schooling for families in what is widely regarded as the poorest district in Malaysia.

“Sometimes I use it when there’s extra-curricular activities (at school),” Riolwen said, referring to after-school programmes.

“If my parents can’t give me any money, I’ll still be able to buy something,” he added.

The initiative was made possible through a collaboration between state-owned SMJ Energy and the MyKasih Foundation, under its “Love My School” programme — a smart-card system designed to channel targeted welfare support to underprivileged students.

The programme targets schoolchildren from poor families with monthly aid for food, stationery, and school supplies — all delivered via the cashless card, which can be used only at designated shops and school canteens for pre-approved essentials.

According to state Finance Minister Datuk Seri Masidi Manjun, SMJ Energy reported a profit of RM320 million in 2024 and is now fulfilling its social obligation by redistributing part of that wealth back to the people. 

SMJ Energy is established to manage the Sabah’s commercial interest in the oil and gas industry. 

“We chose Pitas because it has long been known as the most underdeveloped district in Malaysia. This is part of our corporate responsibility to help communities that need assistance. 

“And we believe one of the most effective approaches is to invest in the youth,” he said at the launch of the programme at Kanibungan Secondary School in Pitas, some 200 kilometres from Kota Kinabalu. 

The programme will benefit students from four primary and three secondary schools in the district. 

Each student will receive RM100 per month for the next eight months through the MyKasih smart-card system.

“There will be no cash withdrawals. Sometimes when people receive cash, instead of buying food, they buy a new phone. This programme is about changing mindsets — ensuring help goes where it’s needed,” he said.

Eligibility was determined through school data in cooperation with MyKasih, with priority given to households earning less than RM2,500 a month.

“This is the first time MyKasih is working with SMJ Energy. Previously, there were small-scale contributions from elected representatives, but nothing as comprehensive as this,” Masidi added.

He said the state will evaluate the programme’s impact before deciding whether to expand it to other needy districts or continue it in Pitas.

“Either way, we are setting a precedent for how natural resource revenue can directly support education and social mobility,” he said. 

During the same visit, Masidi also approved RM250,000 to build a multipurpose hall for one of the participating schools and an additional RM15,000 for a local church. 

Also present were SMJ Energy CEO Dr Dionysia Kibat and MyKasih Deputy Chairman Jeffrey Perera.  - June 11, 2025 

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