By Karen Bong and Ling Hui
KUCHING, June 23: The federal government through Malaysia Petroleum Resources Corporation (MPRC) has to date committed development grants totalling close to RM7 million for local oil and gas, services and equipment (OGSE) companies, of which about 20 per cent went to Sarawak-based companies.
Minister in the Prime Minister’s Department (Economy) Dato Seri Mustapa Mohamed emphasised that the government has initiated the OGSE Development Grant amounting to RM25 million over a period of five years (2021-2025) to support OGSE players to reach greater technological sophistication and employ more skilled talent.
“The funds will be disbursed through matching grants provided to local OGSE companies.
“Despite the significant progress made in the last three decades, our OGSE industry is not without its challenges. In recent years, the industry has become increasingly fragmented with 98 per cent of OGSE companies consisting of small and medium-sized enterprises (SMEs).
“Besides that, there is a high concentration of low complexity work. These factors have inhibited industry players from building financial strength and developing export-ready products and services,” he said when addressing the audience at OSGE Roadshow 2022 at Borneo Convention Centre (BCCK) here today.
Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg officiated at the closing ceremony for the roadshow which was the second of a series to be hosted across the country to promote the National OGSE Industry Blueprint 2021-2030.
Mustapa also highlighted that the OGSE Blueprint, launched in April last year, outlined a way forward for the industry to develop a robust, resilient and globally-competitive Malaysian OGSE sector.
The Blueprint, premised on four strategic pillars—competitiveness, resilience, sustainability and national development—is anchored by 31 initiatives, of which 21 have been operationalised since it was launched.
“A total of 19 of them (initiatives) are ahead or on track to achieve targets this year.
“The Blueprint will also play an essential role in moving OGSE companies to relevant industries as we heed the call to address climate change and transition away from fossil fuels into renewables,” he pointed out.
As the world shifts towards using energy from clean and sustainable sources such as renewables, Mustapa said more opportunities will emerge in this new growth area and thus, OGSE players should equip themselves with the right skill sets as well as technology to secure growth in this new area.
“On top of this, capability and competency building in new growth areas beyond traditional oil and gas is essential for OGSE players to enhance resilience and remain competitive amid the global energy transition.
“In the short to medium-term, the OGSE Blueprint calls for the adoption of ESG (environmental, social, and governance) elements in the industry. The adoption of ESG elements will send the proper signal to foreign investors and enhance our attractiveness as an investment destination for green-related FDIs (foreign direct investments),” he added.
Sarawak Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni, State Secretary Datuk Amar Jaul Samion and MPRC chairman Dato Dr Ahmad Suhaili Idrus were among those present. — DayakDaily
