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Funding the Future through Five Strategic Thrusts

The Government of Malaysia has signaled a profound vote of confidence in the future of the nation’s Oil & Gas Services and Equipment (OGSE) industry, announcing a substantial RM50 million funding allocation under the Thirteenth Malaysia Plan (RMK13).

YBhg. Datuk Badrul Hisham Mohd, Deputy Secretary General (Sectoral) of the Ministry of Economy shared the approved allocation at the annual National OGSE Blueprint Forum 2025. This critical funding will be channeled through MPRC to implement five strategic initiatives aimed at strengthening resilience, driving expansion, and ensuring the sector is ready for the future.

Serving as the focal point for this annual event, the National OGSE Industry Blueprint 2021-2030 (OGSE Blueprint) facilitates MPRC's ongoing efforts to address industry pain points and foster new growth opportunities. A testament of MPRC’s continuous commitment of being a steward of the industry since 2011 is delivering the promises of the OGSE Blueprint and building a resilient OGSE sector through collaboration across numerous fronts.

The five key initiatives receiving funding under RMK13 are:

• OGSE Development Grant (OGSE DG): A continuation of the successful matching grant program, with total funding raised to RM30 million under RMK13, to support companies in adopting technology, innovation, and increasing exports.

• Regional Champions Programme:Provides grants and facilitation to drive industry collaboration and accelerate the overseas expansion of Malaysian OGSE companies, especially within the ASEAN region.

• Growth Beyond OGSE:Encourages OGSE players to diversify their portfolios into high-value sectors that support the national agenda, such as the circular economy and the energy transition (e.g., CCUS and renewable energy).

• OGSE Sustainability Programme:Focuses on enhancing the OGSE sector’s resilience against climate impact by promoting the adoption of robust sustainability practices and compliance with ESG standards.

• PROPEL OGSE: Concentrates on upskilling and certifying the OGSE workforce in core technical skills through targeted training at TVET centers, ensuring a steady supply of high-skilled talent.

"The tools are in place and the time to act is now. Use these tools to innovate, expand, and future-proof your operations."

Reinforced YBhg. Datuk Badrul Hisham Mohd on the immediate need for the industry to seize this opportunity.

Safeguarding the OGSE of Tomorrow

In his welcoming speech at the Forum, YBrs. Encik Mohd Yazid Ja’afar, President/CEO of MPRC, contextualized this government support, emphasizing the pivotal role of the OGSE Blueprint in guiding the sector through global shifts like climate change and the energy transition.

"The OGSE industry is at a pivotal moment. Global shifts like climate change and the energy transition have altered the operating landscape, challenging the competitiveness and resilience of our companies. This is precisely why the theme of this year’s event is ‘Safeguarding OGSE of the Future."

MPRC's mandate remains clear: to strengthen the OGSE ecosystem by addressing persistent challenges related to innovation, talent, and finance, while simultaneously capitalising on new opportunities.

Key Strategic Directions Highlighted by MPRC:

• Regional Champions Programme (RCP):MPRC is actively leading the programme to accelerate OGSE ASEAN connectivity, with the first business exploration session held in Indonesia in November.

• New Energy Policies: The introduction of new acts, such as the Carbon Capture, Utilisation and Storage (CCUS) Act and the National Climate Change Bill,signals major new opportunities that require OGSE players to adapt and pivot their capabilities.

• Domestic Stability:The country’s vision to maintain a minimum production of 2 million barrels of oil equivalent per day (BOE/D) until 2035 offers vast and sustained opportunities for OGSE companies to drive demand for innovative technologies and talent development.

The Government's RMK13 funding and MPRC's ongoing strategic initiatives, anchored by the OGSE Blueprint, are set to build a globally competitive, resilient, and future-ready OGSE industry that will continue to be a vital pillar of the nation's economy and energy security.

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