MALAYSIA ON TRACK TO BECOMING REGIONAL OIL AND GAS HUB BY 2020
MPRC has strategies to elevate local players, attract more multinationals
MALAYSIA is set to become a regional oil and gas (O&G) hub by 2020. Malaysian Petroleum Resources Corporation (MPRC) said the country, one of the fastest growing economies in Asia Pacific with a market-oriented economy and probusiness government policies, also aims to en“A sure that local players become regional players in the sector.
MPRC president and chief executive officer Datuk Shahrol Halmi said it is important for Malaysia to become an O&G hub.
“We have strategies to ensure that we get there, and are working hard to make it happen.
“It is crucial to attract multinational corporations (MNCs) into making Malaysia their regional base. hub is not just a hub. It brings other benefits to the economy such as technology transfers and jobs,” Shahrol told NST Business recently. He said 18 MNCs have set up regional operational headquarters in Malaysia.
“An operational headquarters is important as the scale is bigger. We are on target, in terms of building a reputation, attracting MNCs to set up operational headquarters and helping our players become regional players.
“Our stretched target is to attract at least half of the global players to set up operational headquarters in Malaysia,” he said.
Malaysia aims to grow its aggregate production capacity for O&G and energy by five per cent per year between 2010 and 2020.
Most of this growth will come from enhancing the output of its O&G fields as well as new marginal fields, and enhancing exploration and development of deepwater areas.
The dynamic relationship between the public and private sectors also helps develop a strong O&G ecosystem that is supported by an investor-friendly legislative and regulatory framework and well-developed infrastructure.
Senior vice-president Syed Azlan Syed Ibrahim said MPRC wants to elevate local players into regional or global players.
This is part of Malaysia aim of becoming an O&G hub.
“Cost structure is exceptionally important now for O&G companies while adjusting to the new norm. Cost structure is the name of the game.
“What we realise is, when companies decide on the location of their operational headquarters, it important to have close proximity to their clients, good living standards and availability of talent. We are proud that we have all three in the country to offer to the MNCs. Incentives are usually just the sweetener to the deal.”
He said the challenge lies mostly in pushing local players to become regional players, adding that local players are not all fullyindependent.
“We believe the market is mature enough for our players to develop their own technologies, products or services. We are in the transition phase from being an agent of other company’s technology to coming up with our own,” he added.
One of MPRC’s many initiatives is the development of the Pengerang Integrated Petroleum Complex in Johor,
There are about 3,956 O&G services and equipment businesses in Malaysia comprising international oil companies and independent, services and manufacturing companies that support the value chain domestically and regionally.