Malaysia’s National Oil & Gas Services and Equipment (OGSE) Industry Blueprint Convenes Inaugural Steering Meeting
❖ Implementation of Blueprint initiatives on track with 6 initiatives rolled out this year
❖ 60% of 10 approved companies under OGSE Development Grant tapping fund for technology and innovation
KUALA LUMPUR, 11 November 2021 – The Economic Planning Unit (EPU) and Malaysia Petroleum Resources Corporation(MPRC) recently organised an inaugural steering committee of the National OGSE Industry Blueprint 2021-2030 that was chaired by Minister in the Prime Minister’s Department(Economy), Dato’ Sri Mustapa Mohamed.
The Blueprint Steering Committee, which was established following the launch of National OGSE Blueprint in April this year, on Monday reviewed the progress over the last eight months of the Blueprint implementation, specifically the initiatives that have been rolled out this year and endorsed five programmes escalated by initiative owners MPRC,MIDA, and MATRADE. The endorsed programmes include a Government point of contact for oil and gas services and equipment (OGSE) industry via a web-portal—an MPRC-owned initiative—that was launched in September. Other initiatives endorsed by the Committee include efforts undertaken towards defining and recognising OGSE companies and establishing a baseline to track the progress and development of the sector.
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. The Steering Committee convenes for meeting at least twice a year during the implementation phase of the Blueprint.
The Blueprint—an effort by the Malaysian Government to solve existing structural challenges in Malaysia’s OGSE sector—identified31 initiatives across key levers including export, Bumiputera development, technology, industry and financial strength, and talent.
In support of the sector’s continued growth, EPU also worked closely with MPRC in developing and designing the OGSE Development Grant (OGSE DG), alongside the Blueprint to enhance local Mid-Tier Companies (MTC) and Small Medium Enterprises (SMEs) players’ competitiveness through innovation and export. The RM25 million OGSE DG was launched in April together with the Blueprint. As of November, the OGSE DG has selected 10 companies, or equivalent to RM2.2 million in disbursement.
“Based on figures provided by MPRC, I am pleased to announce that the OGSE DG is on track towards achieving its target of RM5 million in annual disbursement to eligible and approved companies. This is a heartening development as we believe companies that embrace innovation will better navigate and thrive in a competitive and evolving energy landscape,” Mustapa said.
MPRC President and Chief Executive Officer, Mohd Yazid Ja’afar, added that together with EPU, MPRC will continue to deliver meaningful impacts to the OGSE industry to reach its full potential. The Development Grant will assist in increasing OGSE companies’ competitiveness in the industry, accelerate innovation and drive them move towards commercialisation and exports.
The OGSE Development Grant is part of the Twelfth Malaysia Plan to assist and facilitate high potential OGSE Small and Medium Enterprises (SMEs)and Mid-Tier Companies (MTCs)to move and develop their technology and innovation along the complex stages of the commercialisation process. The grant is a matching fund on a 70:30 basis. Details of the OGSE Development Grant are available at www.mprc.gov.my/OGSEDG.