Pengerang investment must deliver measurable results, financial improvements, says industry expert

KUALA LUMPUR, September 1 — According to industry expert Datuk Seri R. Jeyenderan, the substantial multibillion-ringgit investment in Pengerang must now yield tangible operational and financial enhancements, especially given PRefChem's ongoing losses. Jeyenderan, who possesses over three decades of experience in the shipping industry, advised that the Pengerang Integrated Complex (PIC) be judged against specific and transparent benchmarks rather than generic assurances.

He outlined the desired outcomes for the next few years, including increased and stable plant utilization, fewer unplanned shutdowns, reduced losses, positive operating cash flow, and ultimately, a competitive return on the capital invested. Jeyenderan emphasized that these benefits should extend beyond financial gains, encompassing strengthened domestic fuel security, crude oil sourcing diversification, stronger exports, quality employment, and broader economic opportunities for Malaysian maritime, logistics, and supporting service industries.

He advocated for a transparent performance scorecard that would detail yearly improvements and progress towards the project's economic goals, enabling public and stakeholder assessment of the investment's effectiveness. Jeyenderan stressed that continued investment would be justified only if it leads to clear operational improvements, financial targets, and a credible path to sustainable profitability.

He cautioned that without these clear indicators and without disclosing key operational and financial objectives, Malaysians might question whether the investment is genuinely being turned around or merely perpetuated. Jeyenderan further highlighted the importance of robust governance and transparency within the Pengerang ecosystem, recommending regular independent audits and reconciliation of petroleum cargo movements across the system.

He called for clear accountability among customs, terminal operators, cargo owners, and other relevant agencies, asserting that any discrepancies in cargo handling, classification, ownership, or taxation should be promptly investigated and resolved. He argued that enhanced oversight would safeguard government revenues while preserving public confidence in Pengerang as a critical petroleum hub.