Where we are today
The oil, gas and energy sector has been a mainstay of Malaysia's growth and
contributes approximately 20 percent of national GDP. With the prospect of
decreasing production from a maturing asset base, we will have to pursue
sector-wide opportunities to reach the ambitious real annual-growth target and
provide a sustainable energy platform.
Vision for the future
By 2020, Malaysia will have a more diversified oil, gas and energy sector
that remains vital to our development, and that builds on the nation’s
competitive advantages. A key thrust would be to intensify exploration and
enhance production from domestic reserves. We will also develop a strong
regional oil field services and equipment hub and a stronger presence in the
regional midstream logistics and downstream markets. Finally, Malaysia has
the potential to grow alternative energy sources such as nuclear, solar and
hydro to overcome the decline in domestic natural gas production.
Targets and aspirations
The Oil, Gas and Energy NKEA is targetted to raise total GNI contribution to
RM241 billion by 2020 from RM110 billion in 2009. As the base case projects
a natural 2 percent decline in oil and gas production, this GNI target will
require the NKEA to grow at an ambitious rate of 5 percent. In achieving
this, an additional 52,300 jobs will be created. A significant proportion of
these jobs will be highly-skilled jobs with an estimated 21,000 jobs for
qualified professionals such as engineers and geologists, with monthly
salaries in the range of RM5,000 to RM10,000.
A total of 12 entry point projects have been developed across four themes to
raise the sector's output and meet energy demand over the 10-year time frame.
Sustaining oil and gas production
Three EPPs will overcome the projected decline of 1 to 2 percent in
domestic oil and gas production - capturing value from mature fields
through enhanced oil recovery, using innovative solutions to develop
small fields and intensifying our exploration activities.
Enhancing growth in downstream
Malaysia can capture the value created from increasing international
flows of crude oil and refined products by building a regional
oil-storage hub and developing a regasification terminal for imported
liquefied natural gas.
Making Malaysia the number one Asian hub for oil field
Malaysia will attract multinational corporations, consolidate domestic
fabricators to increase their likelihood of winning major contracts and
partner with world-class companies to establish a presence in the
construction and installation portion of the value chain.
Building a sustainable energy platform for growth
Malaysia will diversify its energy sources beyond gas to fuel growth and
honour our commitment to lower carbon emissions. Alternative sources
such as solar and nuclear power will be developed, while at the same
time energy efficiency measures will also be undertaken.
Achieving our ambitious target will require RM218 billion in funding. Of
this, less than 1 percent will be from the public sector. Additionally RM64
billion will be needed to offset the current decline in oil production, and
the tax rebates to enhance energy efficiency will likely require RM12
billion. Three key enablers need to be in place to ensure we achieve our
target. These are providing effective investment support to ensure investors
are actively courted and deals are enabled; ensuring investors can bring in
the necessary expatriate talent; and introducing measures to increase the
supply of graduates to staff the approximately 21,000 new jobs created at or
above graduate level by 2020.