KUALA LUMPUR, 10 OCTOBER 2025 - Malaysia Petroleum Resources Corporation (MPRC) is optimistic that Budget 2026 will continue to provide a supportive environment for the country’s energy transition, reaffirming opportunities for the oil and gas services and equipment (OGSE) industry to accelerate their pivot to cleaner, more sustainable energy solutions and access pathways to new value creation.

Malaysia Petroleum Resources Corporation (MPRC) President/CEO, Mohd Yazid Ja’afar commented, “It is encouraging to see the Government’s continued commitment to the energy transition through Budget 2026. The announcement of RM150 million for the National Energy Transition Fund (NETF), alongside the continuation of the Green Technology Financing Scheme (GTFS 5.0), are among initiatives which send a clear signal that the Government’s energy transition agenda is here to stay and should be seen as a definitive pathway for OGSE companies to seek further value-creating activities.”

MPRC also welcomes the upcoming Carbon Tax in 2026 as a key driver for accelerating decarbonisation, particularly through Carbon Capture, Utilisation and Storage (CCUS). Since 2024, MPRC has supported the Ministry of Economy’s Environmental and Natural Resources Division (BEASSA) in developing and advocating the Government’s CCUS implementation plans.

The introduction of the Carbon Tax for the iron, steel, and energy sectors next year, signals a firm move towards carbon accountability and market-based emissions regulation. In anticipation of this, MPRC has begun tracking OGSE emissions data to establish an industry baseline. MPRC’s GHG tracking initiative forms part of activities under the Mid-Term Review of the National OGSE Industry Blueprint 2021-2030 (OGSE Blueprint).

Other energy transition initiatives under Budget 2026 also support a key OGSE Blueprint initiative and MPRC’s drive to pivot OGSE’s companies towards new growth areas beyond traditional oil & gas support services, for which OGSE companies possess transferable skills. MPRC has conducted business matching opportunities for Hybrid Hydro Floating Solar (HHFS), a flagship project of the National Energy Transition Roadmap (NETR).

The Government’s emphasis on regional energy integration through the development of the ASEAN Power Grid, as well as the RM2 billion MADANI Undersea Cable Connection (SALAM) across Johor, Sabah and Sarawak would also open up new opportunities for OGSE companies to diversify into adjacent energy transition portfolios, particularly in engineering, procurement, construction, and commissioning (EPCC) activities.

Mohd Yazid further commented, “Talent has always been a key enabler of the OGSE industry and we are grateful to the Madani government for the numerous talent development programmes included in Budget 2026 which could provide a skilled workforce capable of supporting Malaysia’s energy transition and industrial transformation.”

Budget 2026 also underscores the country’s commitment to strengthening export growth which could benefit OGSE companies to play a bigger role in the global energy supply chain. With Government’s guarantee of up to 70%, mid-tier and export-oriented OGSE companies could leverage on Syarikat Jaminan Pembiayaan Perniagaan (SJPP)’s initiative to secure financing for international projects and partnerships. A total of RM5 billion has been allocated under this facility.

Mohd Yazid Ja’afar concluded, “With the right support mechanisms, strategic investments and continued policy alignment as outlined in Budget 2026 and the 13th Malaysia Plan, OGSE companies can evolve into key enablers of clean energy technologies and carbon management solutions. MPRC will continue to facilitate capability-building, foster strategic partnerships, and advocate for policies that empower the OGSE industry to thrive in a low-carbon economy.”

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About MPRC

Established in April 2011, Malaysia Petroleum Resources Corporation (“MPRC”) is an agency of the Ministry of Economy primarily tasked with advancing Malaysia’s Oil & Gas Services and Equipment (“OGSE”) industry. As countries around the world, including Malaysia, embark on the energy transition, MPRC further advocates for OGSE companies to pivot towards cleaner and sustainable energy as new areas for business growth. MPRC also provides policy recommendations to the Government on the oil & gas and energy industries.

Following the launch of the National OGSE Industry Blueprint (“OGSE Blueprint”) 2021-2030, MPRC serves as its custodian, coordinating and implementing its initiatives together with OGSE Blueprint partners. The OGSE Blueprint seeks to develop a robust, resilient, and globally competitive OGSE sector that contributes to sustainable national development in Malaysia.

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