KUALA LUMPUR, Oct 15 — The research and development (R&D) push by the government comes at a time when the global oil and gas (O&G) industry is bracing for a bearish year in 2020, as supply and demand balances show persistent surpluses against a slowing global economy, Malaysia Petroleum Resources Corporation said.
Deputy chief executive officer Mohd Yazid Ja’afar said the US-China trade war is deepening and oil majors continue to demand for cost effective and low-carbon technologies.
“As a key contributor to Malaysia’s gross domestic product, oil and gas services and equipment (OGSE) has a key role to play the push towards becoming a high-income status nation.
“Having built deep capabilities to serve requirements along the O&G value chain, the industry has diversified beyond Malaysian shores to secure projects in the Asia Pacific and beyond,” he said in a statement.
He also noted that the government’s R&D push will further strengthen the growth of the OGSE industry.
“Initiatives such as the one-stop Innovation Office will further strengthen the current industry drive to harness technology.
The Innovation office could potentially serve as an effective avenue for local OGSE companies to not only build a competitive edge, but grow the R&D DNA, which will enable them meet the future requirements of the O&G industry,” Mohd Yazid said.
He said the 5.3 per cent increase in budget allocation for the Bumiputera Agenda to RM8 billion in 2020 represents an opportunity for growth for Bumiputera-owned OGSE firms in Malaysia. — Bernama