PUTRAJAYA, 26 NOVEMBER 2024 – Oil & gas services and equipment (“OGSE”) companies must move beyond business as usual to grow, unleash greater value and achieve competitiveness and resilience, said YB Rafizi Ramli, Minister of Economy.

“My view is that in order to rebuild the strength of oil & gas (following the COVID-19 crisis and 2014 oil price crash), we need to build up more of the ‘big boys’ that can be resilient to crisis,” said YB Rafizi while chairing the National OGSE Industry Blueprint 2021-2030 (“OGSE Blueprint”) Steering Committee meeting here today.

He also emphasised that the OGSE sector needed more companies which could serve as “pillars” of the sector with diversified customers beyond Malaysia. “The pie is getting smaller. There is a limit to the opportunities available from the domestic market, and even if OGSE companies can go international and regional opportunities may also remain limited,” he said.

"Hence, it is also important for the OGSE sector to identify adjacent sectors including in the energy transition, where it can leverage its transferable technical capabilities to seek new business opportunities.

"To this end, the Mid-Term Review (“MTR”) of the OGSE Blueprint, which had been conducted from March to October 2024, would also emphasise on building strategic partnerships to enable OGSE companies to strengthen their competitiveness. The OGSE Blueprint and its MTR are overseen by Malaysia Petroleum Resources Corporation (“MPRC”), the Ministry of Economy’s OGSE sector development agency.

YB Rafizi noted that the oil & gas industry and its OGSE sector supply chain had undergone many changes and was now getting back on its feet following recent crises. “Meanwhile, in terms of policies, there are a lot of new opportunities that may be available to the OGSE sector compared to previously. Hence, the OGSE Blueprint MTR is important to realign the OGSE Blueprint with national policies, roadmaps and emerging global trends,” he said.

He also emphasised for the OGSE Blueprint MTR, which will be launched in the first quarter of 2025, to focus on impactful outcomes to enable the sector to achieve long-term competitiveness and sustainability and continue to contribute to Malaysia’s economic growth.

Meanwhile, Mohd Yazid Ja’afar, President/CEO, MPRC said, “As part of the MTR outcomes, new flagship projects will be introduced to propel the sector into bold new frontiers, focusing on enhancing competitiveness, establishing regional leadership and ensuring long-term sustainability. These initiatives underscore a commitment to strengthening Malaysia’s OGSE sector in an ever-changing global environment.”

The OGSE Blueprint MTR had also been conducted as the OGSE Blueprint reaches its midway point in 2025, with highlights of its implementation from 2021 to date including:

• A total of 300 individuals successfully obtained certifications in oil and gas sector skills through partnerships with training institutions ADTEC Kemaman, ADTEC Shah Alam and Sarawak Skills.

• RM40 million in sales generated from R&D activities conducted by 18 SMEs that received funds from the OGSE Development Grant. To date, RM19 million has been allocated to 81 companies through the OGSE Development Grant.

• The launch of the National OGSE Sustainability (“NOS”) Framework Guide, the final instalment of the three-part NOS Programme. The NOS-FG equips OGSE companies with comprehensive guidance to embed and report on sustainability practices.

• The launch of MPRC's OGSE Strategic Facilitation Partnership Service to assist OGSE companies identify and partner with suitable collaborators to strengthen competitiveness and gain wider market access.

• The launch of the OGSE Census in collaboration with the Department of Statistics Malaysia (“DOSM”) to gather definitive data on the OGSE sector.

• Facilitation and approval of 76 applications for grants, alternative financing and export programmes through the i-OGSE Portal.

• 20 OGSE companies approved for RM25 million in grants from TERAJU’s Dana Kemakmuran Bumiputera from 2021 to 2023, catalysing projected investments exceeding RM250 million.

• 10 OGSE companies secured fiscal facilitation for Malaysian Investment Development Authority’s (“MIDA”) Industry4wrd Intervention Fund, Smart Automation Grant and Automation Capital Allowance.

• Eight multinational corporations (“MNCs”) in the OGSE sector have received MIDA approval for new and expansion projects.

• 400 Malaysian diasporas engaged through TalentCorp’s OGSE returning talent programme and 300 participants benefitted from its #WalkWithMe OGSE Industry Coaching Programme, which supports career development in the OGSE sector.

• RM2 billion in potential sales for 164 OGSE companies facilitated through Malaysia External Trade Development Corporation (“MATRADE”) business matching and export promotion.

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About MPRC

Established in April 2011, Malaysia Petroleum Resources Corporation (MPRC) is an agency of the Ministry of Economy primarily tasked with advancing Malaysia’s Oil and Gas Services and Equipment (OGSE) sector. As countries around the world, including Malaysia, embark on the energy transition, MPRC further advocates for OGSE companies to pivot towards cleaner and sustainable energy as new areas for business growth. MPRC also provides policy recommendations to the Government on the oil & gas and energy industries.

Following the launch of the National OGSE Industry Blueprint 2021-2030 (OGSE Blueprint), MPRC serves as its custodian, coordinating and implementing its initiatives together with OGSE Blueprint partners. The OGSE Blueprint seeks to develop a robust, resilient, and globally competitive OGSE sector that contributes to sustainable national development in Malaysia.