This article first appeared in The Edge Financial Daily on June 25, 2019

KUALA LUMPUR: To meet future economic needs, the oil and gas services and equipment (OGSE) business as well as the industrial ecosystems must be restructured to remain relevant and competitive, said Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali.

In a special address at the 20th Asia Oil & Gas Conference 2019 yesterday, Mohamed Azmin said the first National OGSE Industry Blueprint Study will be included in the 12th Malaysia Plan, with the aim of elevating the competitiveness of local players, subsequently promoting long-term resilience and industry sustainability.

“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 relook their business models and future-proof existing strategies in order to stay competitive,” Mohamed Azmin added.

And in light of prevailing environmental concerns, Mohamed Azmin reaffirmed the government’s commitment to sustainability, which is to honour its pledge in reducing carbon footprint.

As such, he reiterated that the government had outlined strategies in the mid-term review of the 11th Malaysia Plan to increase the share of renewable energy in power generation to 20% of 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,” Mohamed Azmin said.

In the meantime, Mohamed Azmin said natural gas will remain 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 said, is strategically positioned to provide solutions to new markets seeking access to clean and modern energy.

Mohamed Azmin also highlighted that the government is actively pursuing energy market reforms to enhance the attractiveness of Malaysia as a 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,” Mohamed Azmin added.