MALAYSIA’S GROWING GLOBAL ROLE
Industry’s prospects promising as global demand is forecast to rise, says Azmin
MALAYSIA can further strengthen its position as a key gas player in the region by capitalising on its existing extensive gas infrastructure.
The natural gas industry has contributed significantly to the national gross domestic product over the years and provided many investment opportunities for local businesses.
Economic Affairs Minister Datuk Seri Azmin Ali said Malaysia had recorded consistent economic expansion due to its strong fundamentals and diverse
sectorial strength, and despite the ongoing global economic challenges.
“The oil and gas industry, which is Malaysia’s second-highest export earner, is most definitely a key contributor to the country’s trade,” he said in his speech read by his deputy, Senator Dr Mohd Radzi Md Jidin, at the inaugural Malaysian Gas Symposium (MyGAS 2019), here, yesterday.
He added that Malaysia held a significant position in the global energy market, with the country being the world’s fourth largest exporter of liquefied natural gas.
“The prospects of the industry look promising as global demand is forecast to increase over the next decade.
“This growth trajectory reflects the global aspirations of countries in pursuing prosperity while ensuring sustainability,” he said.
The minister also shared several key initiatives to be undertaken by the government, including the National Oil and Gas Services and Equipment Industry Blueprint Study under the 12th Malaysia Plan.
He said the blueprint would further elevate the competitiveness of local players, subsequently promoting long-term resilience and industry sustainability.
The government had also collaborated with industry players to publish an Oil, Gas, Energy and Environment White Paper on Malaysia’s Future Energy Landscape.
This effort signified Malaysia’s aspirations to be a low-carbon economy with a blueprint on energy policies that will stimulate climate action and mitigate carbon emissions.
It is estimated that by 2035, more than 70 per cent of energy demand growth will be met by gas and renewables combined, with gas supplying more than 40 per cent of the additional demand.
This would also be driven by the current global demand for climate action, where countries globally are putting in place policies to advocate the increased use of natural gas.
Malaysian Gas Association (MGA) president Hazli Sham Kassim said natural gas was the perfect partner for renewables, given that gas-fired turbines allowed flexibility to address intermittencies of renewable power generation and offered integrated innovative solutions at significantly lower environmental and economic costs.
“With the unique properties of natural gas and its promising prospects, the need of the hour is for a comprehensive roadmap to actualise the full potential of Malaysia’s natural gas industry and spur the low carbon economy,” he said.
Meanwhile, the Economic Affairs Ministry said the government had agreed to host the 7th International Energy Forum and the International Gas Union Ministerial Gas Forum in September next year. to recognise Malaysia’s pivotal role in the regional platform.