Malaysia OGSE Blueprint Initiatives Focus on Tech, Talent, Financing in 2022

25/04/2022

❖ 15 Initiatives commencing in 2022 to cover technology, talent, and financing to strengthen, grow OGSE industry capacity and capability 

❖ OGSE Industry Sustainability Plan to roll-out this year, provides guidance to SMEs, companies on sustainability reporting  

❖ OGSE Development Grant, an EPU-MPRC initiative, has awarded RM7mil to 31 OGSE companies to date 

KUALA LUMPUR, 25 April 2022 – As the National OGSE Industry Blueprint 2021-2030 marks its first year of implementation in support of the oil and gas services and equipment (OGSE) industry, the Economic Planning Unit (EPU) and Malaysia Petroleum Resources Corporation (MPRC) today announced plans to kick-off a further 15 initiatives under the Blueprint to strengthen and grow the industry in the next decade and beyond.  

“The 15 Blueprint initiatives that are set to commence this year will continue to address systemic issues confronting the sector, specifically in the areas of technology, talent, and funding. EPU, alongside MPRC, will continue to work closely with ministries, agencies, PETRONAS, industry players and relevant stakeholders to realise the vision and goals set out in the OGSE Blueprint,” Minister in the Prime Minister’s Department (Economy), Dato’ Sri Mustapa Mohamed said at the second steering committee meeting for the Blueprint. The OGSE Blueprint was launched in April 2021 and outlined 31 initiatives for sector-wide improvements. [Refer to supporting Blueprint FACTBOX for detailed information]  

Dato’ Sri Mustapa Mohamed added that ensuring the Blueprint followed through its recommendations and initiatives are key to ensure the OGSE industry remains relevant in a landscape that is fast pivoting to a low-carbon, greener future. “To complement efforts under the Blueprint, the Government, via MPRC, will also introduce a Sustainability Plan for the OGSE sector later this year, which will serve as a guideline for industry players, particularly the SMEs to get into sustainability reporting and adopting sustainable business practices, while also looking at opportunities to introduce low-carbon technologies or solutions to the sector.”  

He further added that OGSE Development Grant, another joint effort by EPU and MPRC to support the sector’s continued growth, has approved RM7 million to 31 OGSE companies since it was launched in April 2021.  

“It is important that both the Blueprint and the complementary efforts by the Government and MPRC continue to gain traction among industry players. I am pleased to note that MPRC will be conducting roadshows around Malaysia, beginning with Terengganu, Sabah, and Sarawak in the coming months to reach out to industry players and stakeholders in these states,” Dato’ Sri Mustapa Mohamed added.  

MPRC President and Chief Executive Officer, Mohd Yazid Ja’afar, further elaborated that these efforts are being made to support and further develop a sector that has long contributed to Malaysia’s economic development. “The OGSE industry is undergoing significant challenges, even as oil prices have recovered and as economies move from pandemic-mode to the endemic phase. For OGSEs to pivot towards growth, these challenges need to be addressed immediately. MPRC, as an implementation agency and Blueprint secretariat will step up on our work towards engagements with stakeholders and industry players, to ensure that the challenges faced are recognised and addressed.”  

FACTBOX:  Malaysia OGSE Blueprint Initiatives Focus on Tech, Talent, Financing in 2022 

KUALA LUMPUR, 25 April 2022 –The National OGSE Industry Blueprint 2021-2030, launched in April 2021, is an effort by the Malaysian Government to solve existing structural challenges in the country’s oil and gas services and equipment (OGSE) sector. Following are some of the key points of the Blueprint:  

What Blueprint aims to achieve by 2030  

The Blueprint has identified 31 initiatives across six development levers—export, industry, technology, talent, Bumiputera and financial strength—to ensure holistic development of the sector. The Government has also set out ambitious goals for the sector, with the view that robust implementation of the initiatives could see the sector contributing around RM40 billion-RM50 billion to Malaysia’s GDP, retain jobs for 60,000 talents, greater adoption of sustainability practices, and more, by 2030.  

Overseeing the Blueprint implementation from 2021-2030 

To track progress of the Blueprint and ensure accountability, a National OGSE Steering Committee has been formed. The committee, with EPU’s Energy Division and MPRC jointly serving as secretariat, comprises Secretary Generals from the Ministry of Finance (MOF), the Ministry of International Trade and Industry (MITI), the Ministry of Entrepreneur Development and Cooperatives (MEDAC), the Ministry of Science, Technology and Innovation (MOSTI), the Ministry of Higher Education (MOHE), the Ministry of Human Resources (MOHR), Senior Deputy Secretary General of the Prime Minister's Department and EPU Director General, with the Minister in the Prime Minister Department (Economy) serving as chair. When necessary, PETRONAS and the Department of Statistics Malaysia are invited by the chair for meeting. The Steering Committee convenes for meeting at least twice a year during the implementation phase of the Blueprint. 

Initiatives commencing in 2022  

15 initiatives are expected to start from 2022 by implementation agencies including MPRC (to operationalise seven initiatives in 2022), Malaysia Investment Development Authority (two initiatives), Malaysia External Trade Development Corporation (three initiatives), TalentCorp (two initiatives) and trade association Malaysian Oil & Gas Services Council with one initiative. With the 15 initiatives, this brings the tally of initiatives that have commenced to 21. MPRC and relevant implementation agencies commenced development of six initiatives following the Blueprint launch in 2021.  

Some of the core activities identified as of April 25 under the 15 initiatives include: -  

  • Participating in OGSE-Centric Career Fair event in partnership with PERKESO and HRDCorp 

  • Assisting Bumiputera OGSE companies through funds under TERAJU 

  • Facilitating 25 OGSE companies for financing-matching (with relevant agencies and DFIs) for export-related activities  

  • Preliminary publication of OGSE industry data indicators to establish and track state and health of the industry.  

 

The Blueprint can be downloaded at https://www.mprc.gov.my/sites/default/files/resources/National%20OGSE%20Industry%20Blueprint.pdf