KUALA LUMPUR, 19 OCTOBER 2023 – The oil & gas services and equipment (OGSE) industry is facing its next opportunity as the world focuses on the energy transition, said YB Mohd Rafizi Ramli, Minister of Economy.

“Not many people know that 85% of core OGSE companies in Malaysia are made up of SMEs. They face similar challenges to other SMEs: less access to capital, stiff competition with bigger players, shortage of talent and technology adoption. This is on top of the fact many OGSE players are still recovering from the long-term effects of the 2014 oil price crash and COVID-19.

“That is why OGSE players must embrace energy transition, as this will solve many of the issues being faced today,” he said in a speech delivered on his behalf by Dato’ Nor Azmie bin Diron, Secretary General, Ministry of Economy during the National OGSE Roadshow 2023 organised by Malaysia Petroleum Resources Corporation (MPRC).

He added that the National Energy Transition Roadmap launched this year outlined 10 flagship projects that will open up RM1.85 trillion in investment opportunities by 2050 with involvement from industry players such as Petronas, Gentari and Tenaga Nasional Berhad

“This is one of many efforts that open areas of collaboration for OGSE SMEs. It will facilitate decarbonisation and improve ESG governance,” he said, adding that OGSE companies must join in the effort to decarbonise to attract younger talent. He also urged OGSE companies to upskill its current workforce and ensure local OGSE talent did not move overseas.

“We must remember that OGSE is in the business of growth. By reshaping our business model through energy transition, I am confident the sector will continue to drive Malaysia’s economy forward - as it has done for many years,” he said.

Meanwhile, Mohd Yazid Ja’afar, President/CEO, MPRC, highlighted that the National OGSE Industry Blueprint (OGSE Blueprint) 2021-2030 had achieved encouraging progress since its launch in April 2021, including the provision of grants, fiscal facilitation, export promotion and talent development (See appendix for selected OGSE Blueprint highlights).

He also announced that MPRC, which coordinates the implementation of the OGSE Blueprint, would embark on a mid-term review of the programme next year, targeted for completion in 2025. He said the review was needed to ensure the OGSE Blueprint remained relevant and pragmatic in tackling the energy transition and other trends in the oil & gas and energy industry. He also called upon all OGSE industry stkeholders to continue working together to realise the potential and vision of the industry.