KUALA LUMPUR (June 24): In order to be able to meet future economic needs, Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali said the oil and gas services and equipment (OGSE) business and industrial ecosystems will have to be restructured and enhanced to remain competitive and relevant.

In a special address at the 20th Asia Oil & Gas Conference 2019 (AOGC 2019) today, Azmin noted that the first National OGSE Industry Blueprint Study will be included in the 12th Malaysia Plan, with the aim to elevate the competitiveness of local players, subsequently promoting long-term resilience and industry sustainability.

"Being in the mainstream of the global economy, Malaysia needs to remain agile and anticipate the highly-challenging and fast-changing external environment," he said.

"The impact of the new industry reality will be felt across various dimensions, from future economic models to human capital and new skill sets to adoption of new technologies. Disruptive forces and future trends will make it imperative for companies to re-look their business models and future-proof existing strategies in order to stay competitive," Azmin added.

In light of prevailing environmental concerns, Azmin reaffirmed the government's commitment to sustainability, which is to honour its pledge in reducing carbon footprint. As such, he highlighted that the government has outlined strategies in the Mid-Term Review of the 11th Malaysia Plan to increase the share of renewable energy in power generation to 20% for installed capacity by 2025.

"To achieve this target, new renewable energy sources will be explored in addition to the current contribution from biogas, biomass, mini hydro and solar power," Azmin said.

While this is taking place, Azmin said natural gas will continue to remain as the fuel of choice as the cleanest of all fossil fuels in accelerating the economy towards a low-carbon future.

As one of the world's largest liquefied natural gas exporters, Malaysia, he pointed out, is strategically positioned to provide solutions to new markets seeking access to clean and modern energy.

Azmin also highlighted that the government is actively pursuing energy market reforms to enhance the attractiveness of Malaysia as the destination for energy investments.

"Malaysia is prepared to not only meet the rise in energy demand, but also navigate through the energy transition, while ensuring a greener and cleaner tomorrow for future generations.

"In forging a new energy future, we are keen to collaborate and are open to win-win partnerships in new growth areas. By gathering here today, we have already taken a very meaningful step in the right direction," Azmin added.

Now in its 20th edition, the AOGC 2019 was first held in 1996 and has since become a biennial gathering and platform for networking opportunities and forging business partnerships amongst the oil and gas fraternity in the Asia-Pacific region. Themed "Forging A New Energy Future", the conference this year is directing its attention to the shift in the global energy landscape, especially the increase in demand for cleaner sources of energy.