MIDA makes strong pitch for O&G industry at Amsterdam’s Offshore Energy 2019
15 Oct 2019
The Frankfurt office of the Malaysia Investment Development Authority (MIDA), participated in the Offshore Energy 2019 in Amsterdam, an exhibition-cum-conference on the oil and gas sector.
Held recently on October 8 and 9, the exhibition attracted key global players in the oil and gas industry and business.
Director of MIDA’s Frankfurt office Yusri Hasnan Chu which also services the Netherlands told Bernama, that he was invited to present investment opportunities in Malaysia’s oil and gas sector.
“This is an initiative by MDBC (Malaysian Dutch Business Council) and NLinBusiness (NLIB). It was held at the NL Maritime Pavilion. I shared insights into the ecosystems of the oil and gas segments covering upstream, downstream and midstream,” he said.
The MIDA director spoke of Malaysia’s “mature upstream oil and gas industry”.
“To date, Malaysia has the third largest O&G reserves in South East Asia,” Yusri observed, emphasizing that Malaysia has a mature upstream oil and gas industry,” he said adding that, Malaysia has the third largest O&G reserves in South East Asia.
According to the presentation made by MIDA’s Frankfurt office, the oil, gas and energy (OGE) industry in the past decade had been contributing about one-fifth to Malaysia’s GDP.
“This sector is striving to achieve a 5% annual growth until 2020,” he said, adding that production is expected to be carried out in more complex and challenging fields such as deep water, high carbon dioxide, marginal fields and enhanced oil recovery (EOR).
The importance of oil and gas can be seen in the global outlook for this sector.
“Oil and gas are expected to account for 40 per cent of power generation by 2050. The rising demand for liquefied natural gas in Asia is expected to continue; indeed, India’s demand is expected to surpass that of China’s. Another important impact of the carbon capture and sequestration or the CCS, to use the acronym, in gas-power plants will lower emission,” he said.
He also pointed out that Malaysia offered special incentives for investments by companies in machinery and equipment for the oil and gas sector.
They would enjoy what is called “pioneer status” and full income-tax exemption for up to 10 years; investment tax allowance, allowing up to 100 per cent of qualifying capital expenditure incurred within five years for income-tax exemption.
Incentives were also available for maintenance, repairs and overhaul of machinery and machinery components.
Yusri is, meanwhile, working on the visit of a high-powered delegation led by the Minister of International Trade and Industry (MITI), Datuk Darell Leiking, who will visit the Netherlands and Germany in the first week of November.
He also invited them to attend the seminar which is being jointly organized by MITI, together with MIDA and the Malaysia External Trade Development Corp. (MATRADE), to highlight business and investment opportunities in Malaysia, the “gateway to ASEAN”.
“We will welcome more investors from the Netherlands to leverage on our country’s competitive and comparative advantages, especially in industries such as electrical & electronics, machinery & equipment, chemicals, life sciences and transport equipment,” added Yusri.
The panellist seminar will update on the latest economic situation, and also highlight investment opportunities and potential business cooperation between the Dutch and Malaysian companies.
Two successful Dutch companies, KMWE & Anza Zaden will share their testimonials of doing business in Malaysia.