The oil, gas and energy industry is central to Malaysia’s economic growth, contributing to one-fifth of the national GDP over the past decade. With new opportunities for investment in the sector, this NKEA is set up to achieve an annual growth rate of 5% in the sector up to year 2020, transform Malaysia into a regional oil trading and storage hub as well as ensuring long-term energy supply security to the domestic market. Collectively, the 13 EPPs for this NKEA are projected to generate GNI of RM131.4 billion and create 52,300 new jobs by 2020.
The global oil and gas industry is in flux as a result of rising regional and domestic demand for energy products, developing sustainable energy solutions, and lifting domestic production. As such, three EPPs have been renamed to reflect the evolving nature of the industry. EPP 6 has been renamed to “Encouraging investments in the Oil & Gas Services and Equipment (OGSE) industry”, while the focus of EPP 7 has shifted from industry consolidation to encouraging local firms with the right potential to export their services and products, and limit dependence on local projects. EPP8 was renamed to reflect a renewed focus towards attracting multinational companies to set up their operations in Malaysia through partnerships with local firms.
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Oil, Gas and Energy
|No||EPPs||2020 GNI (millions)||Jobs||Location||Status|
|Rejuvenating Existing Fields through Enhanced Oil Recovery (EOR)||16,600||-||International, Nationwide || |
|Developing Marginal Fields through Innovative Solutions||5,500||-||International, Nationwide || |
|Intensifying Exploration Activities||-||-||International, Nationwide || |
|Building a Regional Storage and Trading Hub||1,625.7||790||Nationwide || |
|Unlocking Premium Gas Demand in Peninsular Malaysia||2,404||27,000||Johor, Melaka, Sabah || |
|Encouraging Investments in the Oil & Gas Services and Equipment (OGSE) Industry ||6,124.80||20,000||Nationwide || |
|Taking Local Oil and Gas Services & Equipment Companies to the Global Stage||4,108.8||5,000||Nationwide || |
|Attracting MNCs to Set Up Operations in Malaysia and Partner with Local Firms||4,028.8||15,000||Nationwide || |
|Improving Energy Efficiency||13,900||-||Nationwide || |
|Building Up Renewable Energy and Solar Power Capacity||457.5||1,906||Nationwide || |
|Deploying Nuclear Energy for Power Generation||212,300||2,637|| || |
|Tapping Malaysia’s Hydroelectricity Potential||5,700||590||Sarawak || |
|Increase Petrochemical Outputs||-||-|| || |
There are several business opportunities in the oil, gas and energy sector, which together with baseline sector growth will provide a GNI contribution of RM61.2 billion by 2020. Business opportunities can be grouped into two clear themes: Opportunities to secure more output from the same input as current processes improve, and opportunities driven by the increased demand for energy because of a growing economy.
BO 1Process Improvements
Adherence to global benchmarks to operate refining and petrochemical facilities often demonstrates significant economic benefits. Such improvements typically translate into efficiency gains of 0.5% per year, representing an annual GNI contribution of RM3.4 billion.
BO 2Economic Growth
Malaysia’s energy consumption is expected to grow by 3% per year in tandem with the country’s resilient growth, which helps to expand the oil, gas and energy sectors. The increased consumption will require an additional two gigawatts of installed capacity worth RM9.6 billion while the additional transmission will require an investment of RM12.4 billion.