The Malaysia Petroleum Resources Corporation (MPRC) see three key areas of further development in respect of Malaysia’s Oil and Gas Services & Equipment (OGSE) industry which could benefit from allocations in Budget 2024, which is represented as Talent, innovation, and sustainability.
MPRC President/CEO Mohd Yazid Ja’afar said these areas were also identified as the key focus areas in the National OGSE Industry Blueprint 2021-2030 (OGSE Blueprint) to transform the industry into a robust, resilient, globally competitive sector.
Structured OGSE talent development programmes
As reported in the OGSE Blueprint, the industry relies on a workforce of 60,000 to ensure the sustainability of OGSE in Malaysia. As part of OGSE Blueprint efforts to help OGSE workers gain access to immediate job opportunities and remain relevant over the long term, we have just launched the Recognition of Prior Experiential Learning Programme, working with TVET institutions Sarawak Skills, Advanced Technology Training Centre (ADTEC) Kemaman and ADTEC Shah Alam to provide upskilling and certification to experienced OGSE workers in high skilled jobs such as welding inspection and underwater welding as a start.
Beyond this effort, we advocate for a structured and comprehensive approach towards building the OGSE talent pool and capacity building of skilled OGSE workers to move the needle on talent in a holistic way.
This could include career awareness among youth and provision of scholarships in tertiary courses related to oil, gas, and energy to attract the new generation of workers as well as upskilling and certification, and mentoring/training programmes for existing workers; all of which would benefit from Government funding to help kick-start these initiatives.
Mohd Yazid said they are also working with relevant parties to identify the talent landscape of the energy sector of the future.
Nurturing R&D to accelerate innovation in OGSE
Technology is another focus area of the OGSE Blueprint, where Malaysian OGSE companies are being urged to adopt or innovate technology to raise the value of their businesses.
“Since 2021, we have administered the OGSE Development Grant, a matching grant of up to RM250,000 to facilitate local OGSE players in the areas of technology, innovation and/or exports. To date, we have committed RM12.97 million grant to 54 companies, of which 45 companies applied for the grant for technology and innovation activities.
“To further accelerate innovation in OGSE, we hope that Budget 2024 will include allocations to raise the capacity of R&D centres at universities towards developing applied R&D centres which meet the needs of industry. Continued funding support for these R&D centres would enable the commercialisation of oil, gas and energy-related technology and innovation which could, in turn also be exported,” he added, in an answer to questions raised exclusively by Bernama on their Budget expectations.
Enabling OGSE players to adopt sustainability practices
In line with the global shift towards the adoption of sustainability practices, energy transition has been emphasised and MPRC hopes Budget 2024 includes pathways to facilitate SMEs in the sustainability journey.
“It is widely acknowledged that implementing sustainability practices, including conducting sustainability reporting, is costly and complex, particularly for SMEs which face capacity and capability constraints in this area,” Mohd Yazid said.
Meanwhile, companies in the oil, gas and energy industries, such as OGSE players, also face stricter sustainability requirements due to its proximity to environmental issues which are currently the most pressing area in the conversation on sustainability.
“Hence, we call for more support for capacity building to enable SMEs comply with sustainability requirements.”
