Malaysia , Jan 31, 2025
Malaysia’s oil and gas sector, long considered one of the country’s economic pillars, is now facing a growing crisis: a severe shortage of skilled professionals. As major players like PETRONAS and its contractors ramp up operations in the wake of global energy demand recovery, they are finding it increasingly difficult to fill technical and specialist roles—raising alarms across the industry.
Industry insiders attribute the talent crunch to multiple factors, with brain drain topping the list. Skilled engineers and technicians continue to migrate overseas for better salaries and career growth, especially to the Middle East, Australia, and Europe. “It’s not just about money,” says a PETRONAS subcontractor based in Terengganu. “It’s also about job security, exposure to advanced technology, and better work-life balance.”
Another major challenge is the decline in vocational and technical education enrollment. Many young Malaysians are opting for white-collar degrees, leaving fewer graduates equipped for roles like rig technicians, pipeline inspectors, and offshore engineers. Industry veterans point to a disconnect between academic institutions and the real demands of the energy sector.
Adding to the pressure, Malaysia’s energy sector is under growing pressure to evolve toward greener and more sustainable practices, increasing the need for digitally savvy and environmentally aware professionals. The mismatch between the industry’s evolving needs and the available talent pool is widening.
This shortage is not just a human resource issue—it could snowball into economic consequences. Delays in exploration, production, and maintenance activities may hamper Malaysia’s ability to meet energy demands and maintain export targets. The ripple effects could hurt national revenues and investor confidence in the country’s ability to deliver on major projects.
In response, PETRONAS and other key players have launched upskilling initiatives and talent retention programs, including partnerships with local universities and expanded in-house training academies. But experts warn that these efforts may be too little, too late, unless the government steps in with broader incentives and long-term education reform.
“If Malaysia doesn’t solve this talent drain now, we risk falling behind not just in fossil fuel production, but also in the clean energy transition,” warns Dr. Rozana Karim, an energy economist at Universiti Teknologi Malaysia.
The road ahead is steep—and unless concrete steps are taken soon, Malaysia’s prized oil and gas sector could face long-term stagnation.
