KOTA KINABALU: Shell Malaysia has decided to halt its plan to close its petrol stations in Sabah, following intervention from Putrajaya and a series of discussions with the state government, according to Datuk Seri Hajiji Noor, the Chief Minister.
In a statement released on Tuesday (Oct 3), Hajiji expressed his gratitude for the news, saying, “The Sabah government welcomes the good news.”
Earlier this year in June, it was reported that Shell stations in Sabah, including 10 in Tawau, two in Semporna, six in Lahad Datu, and 12 in Sandakan, would be closed beginning in early January.
In response to Shell’s announcement, Hajiji met with Siti Hurrairah Sulaiman, the chairman of Shell Malaysia, to address the matter.
Shell Timur Sdn Bhd, the company that operates Shell kiosks in Sabah and Labuan, confirmed at the time that the closure of several underperforming retail stations was part of a review aimed at sustaining the company’s overall performance.
The closure was primarily attributed to sustained losses over several years due to the unchanged automatic price mechanism (APM), which has not been revised since 1998, as reported.
If the closure had gone ahead, it was estimated that more than 500 people would have lost their jobs.
However, on Tuesday, Shell Timur Sdn Bhd announced that it would reverse its decision and keep its 40 retail stations in Sabah open beyond January.
The company expressed its gratitude towards the governments of Sabah, Sarawak, and the Federal Government for recognizing the challenges faced by the industry and their support in ensuring business sustainability in Malaysia.
In other news, the Sabah police received the first batch of high-powered motorcycles donated by the state government on Tuesday.
During the presentation held at Menara Kinabalu, Hajiji presented four out of the eight motorcycles, worth RM1.076mil, to Sabah Police Commissioner Comm Datuk Jauteh Dikun, with the presence of state secretary Datuk Seri Safar Untong.
Credit: The Star : News Feed
