YB Rafizi: OGSE Players Must Accelerate Pivot towards Energy Transition
Kuala Lumpur, 9 Feb 2023 – YB Rafizi Ramli, Minister of Economy, has called for an acceleration in efforts to pivot the oil and gas, services & equipment (OGSE) industry towards the energy transition in line with the rising prominence of environmental sustainability.
“National and international priorities are moving quite quickly towards low carbon principles to address climate change. This has created wider opportunities for the OGSE industry in other [cleaner] types of energy,” said YB Rafizi while chairing the Third Steering Committee meeting of the National OGSE Industry Blueprint (OGSE Blueprint) 2021-2030 implementation.
“We will need to ensure our OGSE players are geared towards the pivot and I suggest that more initiatives are incorporated into the OGSE Blueprint from this year,” he added, noting that the OGSE Blueprint initiatives pave the way for OGSE companies to thrive in the future by elevating their capabilities to provide support services amid the energy transition, including strengthening their sustainability and capacity to move into adjacent industries beyond traditional oil & gas businesses, such as renewable energy.
He also commended the significant progress made in the OGSE Blueprint implementation over the past year. A comprehensive plan launched in April 2021 to drive growth, resilience and global competitiveness in the OGSE industry, the blueprint brings together ministries, PETRONAS, government agencies and industry associations to address the challenges and opportunities facing the industry. This resulted in several key achievements in 2022:
- Of 500 OGSE-related job opportunities showcased during a career fair in June 2022 and the Skills in Oil & Gas Programme to upskill and reskill OGSE talent for job placement held in December 2022, 18.4%, or 92 talents, were successfully hired.
- RM10 million committed to 42 OGSE SMEs for the OGSE Development Grant. The grant aims to enhance competitiveness of the OGSE small and medium businesses by accelerating technology adoption and expand their reach into export markets.
Rafizi added that five new initiatives are expected to start in 2023, covering market access, financing and OGSE talent development. The OGSE Blueprint—an effort by the Malaysian Government to address existing structural challenges in Malaysia’s OGSE sector—identified 31 initiatives across key levers including export, Bumiputera development, technology, industry and financial strength, and talent.
Mohd Yazid Ja’afar, President/CEO of Malaysia Petroleum Resources Corporation (MPRC), which is custodian of the OGSE Blueprint, noted that talent development initiatives that are expected to start in 2023 aim to help expand relevant engineering courses and provide relevant training programmes to equip workers and graduate engineers with the skills they need to navigate the realities shaping the future of OGSE and energy in Malaysia and beyond.
"The OGSE Blueprint is a key driver of the industry's future, and we are already seeing the results of our collective efforts in the progress since its launch in 2021,” he said. "With the Ministry of Economy, we will continue to work together to achieve the blueprint's goals and ensure the long-term competitiveness of the OGSE sector.”
For more information on the National OGSE Industry Blueprint, please visit National OGSE Industry Blueprint.pdf (mprc.gov.my)