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Oil & gas services, equipment sector expected to contribute RM40-50b to GDP by 2030

Oil & gas services, equipment sector expected to contribute RM40-50b to GDP by 2030

27 Apr 2021

KUALA LUMPUR: The oil and gas services and equipment (OGSE) industry is expected to contribute between RM40 billion and RM50 billion to Malaysia’s gross domestic product by 2030 compared with RM20 billion last year, Minister in the Prime Minister’s Department Datuk Seri Mustapa Mohamed said today.

He said the higher contribution by the sector will be driven by the implementation of initiatives under the National OGSE Industry Blueprint 2021-2030.

“The National OGSE Industry Blueprint 2021-2030 aims to provide direction for OGSE companies to improve their competitiveness, efficiency and technological capabilities.

“We must ensure that the growth of the sector is achieved in a sustainable manner without greater costs to future generations, through innovation and advancement in low-carbon technologies,“ he said in his keynote address at the launch of the blueprint here.

To date, Malaysia has 1,500 active OGSE companies.

Mustapa said the blueprint will also be expected to continue to provide 60,000 jobs for talents, a sharp rise in OGSE patent-filing by local entrepreneurs under technology levers and also instrumental to pushing more OGSEs towards increased sustainability reporting and business practices, with a target of around 70 companies adopting and reporting their sustainability-based business models.

Malaysia Petroleum Resources Corporation (MPRC), supported and guided by the Economic Planning Unit in the Prime Minister’s Department, has been working closely with different ministries, government agencies, Petronas and industry associations in the last 10 months to develop the blueprint.

The blueprint will include four strategic pillar in competitiveness, resilience, development and sustainability, as well as 31 initiatives that will be implemented in three phases starting from 2021.

MPRC also introduced a RM25 million oil and gas, services and equipment development grant for OGSE small and medium enterprises as well as mid-tier companies to enhance their competitiveness through innovation in technology and help accelerate their move towards commercialisation and exports.

MPRC president and chief executive officer Mohd Yazid Ja’afar said the grant was part of the 12th Malaysia Plan to assist and facilitate high potential OGSE and mid-tied companies to move and develop their technology and innovation along the stages of commercialisation process.

“That (grant) is about RM5 million a year. The target for this year is to support at least 20 SMEs and mid-tier companies to apply through their viability phase,” he added.  

Source: Bernama

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