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Kota Kinabalu: Sindumin Assemblyman Yusri Pungut has called for background checks on foreign workers at the Sabah Oil and Gas Industrial Park (SOGIP), claiming Chinese nationals hired by a company there had replaced local workers at lower wages.

“More than 20 former SOGIP workers came to see me a few months ago. They told me they were dismissed by their employer, Esteel, and replaced by workers from China,” he said when debating the Supplementary Supply Bill 2026.

“Sadly, information reaching me suggests some of these Chinese workers are former convicts, and some may still be convicts. This needs to be investigated,” he said.

Yusri said local workers were being displaced, even from positions that did not require specialised skills.

“Our own people are not picky about jobs if given the chance. Even general worker positions are being competed for,” he said.

“If a position genuinely requires expertise that no one in Sipitang or Sabah can provide, we accept that. But if even general worker jobs are being monopolised by foreign workers from China, this is not right,” he said.

He called on the Government to prioritise local hiring and vet foreign workers regardless of nationality.

“I propose that the Government take more proactive steps to give priority to local workers across various job sectors and ensure the backgrounds and criminal records of foreign workers, whether from China, Korea or Japan, are checked first,” he said.

He also asked the Government to disclose the annual revenue generated by Sabah Oil and Gas Development Corporation Sdn Bhd, which manages SOGIP.

Yusri also questioned the whereabouts of RM130 million in aid that the State Government said had been channelled to former Sabah Forest Industries (SFI) workers, saying those affected had denied receiving any of the money.

He said the Government confirmed in a 2022 Hansard record that a fund was set up to help SFI workers and their families after the company ceased operations.

“All SFI workers have flatly denied receiving even a single sen of the aid that was supposedly given to them,” he said.

He said representatives of the workers had lodged a report with the Malaysian Anti-Corruption Commission over the matter.

“Who received the aid? When was it delivered? Who handed it over? Who witnessed the handover? Was it in the form of land instead of cash?” he said.

He linked the questions to the recent gazetting of about 39,482 acres of former SFI concession land for settlement purposes, saying there were concerns among former SFI workers and Sipitang residents that the land could end up being controlled by outside parties through proxies.

“I am only conveying the grievances of people in my constituency. All these questions must be answered by the Government. SFI workers deserve to know, and so do the people of Sabah as a whole,” he said.

“It saddens me. The SFI area used to make us proud, both as the people of Sipitang and as Sabahans. Now it has become like a wilderness. The buildings have fallen victim to vandalism and have been sold off, while people come and go freely,” he said.

Yusri also raised concerns over delays in the release of budget allocations for opposition-held constituencies, saying funds promised since April have yet to reach the ground.

“We support the Bill’s additional allocation, especially since our area, even though we are in the opposition, has not been left out when it comes to receiving these funds,” he said.

He said the State Finance Ministry confirmed in a written reply dated April 27, 2026, that funds could be channelled to opposition-held areas through their respective Community Development Leader Unit (UPPM) offices, subject to the approval of the Chief Minister or State Finance Minister.

“We do not want this to remain just a beautifully worded verbal statement. Ideally, we want it implemented as soon as possible,” he said, pointing out that the Sipitang District Office had yet to act on the Ministry’s stated position.

“The Sipitang District Office does not seem to understand the minister’s statement. 

“The office appears reluctant to submit the application even though the State Finance Minister has already said in this House that the funds can be released through the UPPM and district office,” he said.

“I have personally met with the Sipitang District Office. Until now, all we can do is keep waiting. It feels like the long-awaited project is being held back and cannot be carried out. It is still sitting at the district office level,” he said.

“I hope the Ministry and the Chief Minister will give this matter proper attention and take action because the people of Sipitang do not want this allocation delayed any further. We want this carried out without further delay,” he said.