Oil, gas and energy are closely linked to the broad economy and therefore have a systemic effect on countries. This is particularly true for net energy producers such as Malaysia.
As a result, the Government has embarked on initiatives outlined under this NKEA to ensure energy supply security. Incentives have also been aimed at diversifying the country’s portfolio of energy sources and promoting energy efficiency.
It should be noted that Malaysia’s energy intensity (energy used per unit GDP) has been on the decline over the past decade, reflecting the gradual growth of services as a percentage of the Malaysian economy.
A Note From the Minister
Malaysia’s progress towards high-income nation status is dependent upon it being an open, pro-market economy. This is necessary in order for the private sector to undertake the investments and innovations that a free enterprise market system encourages.
EPP 4: Building a Regional Storage and Trading Hub
Johor Petroleum Development Corporation (JPDC) plays a key role in this EPP by working with federal and state agencies to facilitate and track developments of key projects. Much progress has been made under this EPP following the commencement of Pengerang Independent Terminals Sdn Bhd (PITSB). PITSB is a private-public partnership between Dialog Group Berhad, Holland’s Royal Vopak N.V. and the Johor State Government.
In an increasingly competitive environment, win-win partnerships need to be cultivated between Malaysian companies and reputable international companies with global trading networks to facilitate knowledge transfer and develop strong industry ties.
EPP 5: Unlocking Premium Gas Demand in Peninsular Malaysia
The commencement of operations at PETRONAS Gas Bhd’s (PGB) LNG Regasification Terminal (RGT) in Sungai Udang, Malacca, helped to address the natural gas shortage in Peninsular Malaysia and prepare for future increases in gas demand. Also, proposed amendments to the Gas Supply Act 1993 by the Energy Commission are in progress, in line with efforts under this EPP to promote third party access (TPA) and facilitate the entry of new industry players and enable competitive gas pricing.
While the Government and PETRONAS have made good strides in addressing the natural gas shortage with PGB’s regasification terminal, there is a need for further liberalisation to attract new players into the market. This would lead to greater economic efficiency, market certainty and competitive pricing, ultimately benefitting consumers.
EPP 7: Taking Local Oil and Gas Services & Equipment Companies to the Global Stage
Efforts under this EPP, led by MPRC, are focused on helping domestic oil and gas service providers and manufacturers to explore opportunities beyond Malaysia.
While there is an uptick in participation by Malaysian oil and gas firms in the Asian region, only a handful have successfully established a global presence in the energy sphere. Therefore, there is a need for relevant stakeholders to facilitate the growth of domestic players. This is particularly so for companies with limited brand awareness.
As such, marketing channels such as trade shows are needed to establish linkages between local OGSE manufacturers and foreign firms.
Building a Regional Storage and Trading Hub
Unlocking Premium Gas Demand in Peninsular Malaysia
Taking Local Oil and Gas Services & Equipment Companies to the Global Stage
KPI Achievement 2014
Business Opportunities 2015
Process improvements in operating refining and petrochemical facilities in line with global best practices have the potential to achieve better efficiency and create economic benefits.
To create progressive additional demand for all types of energy, and consequently will also require additional investment.
Critical Target 2015
- Roll-out of Euro4M RON97 and gazetting of Euro5 for petrol and diesel
- Implementation of third party access for gas supply
- Increase in additional power generated from renewable sources