Petronas launches new vendor development programme

-A +A

KUALA LUMPUR (July 31): Petroliam Nasional Bhd (Petronas) today launched a new vendor development scheme under its existing Vendor Development Programme (VDP) to be implemented in collaboration with major industry players in the country.

The scheme, called VDPx, is part of its initiative to boost the capabilities of local firms in Malaysia’s oil and gas industry,  the national oil company said in a statement.

Under the scheme, six petroleum arrangement contractors (PACs) and 12 oil & gas service and equipment (OGSE) companies, will replicate Petronas’ VDP to reach out to more local vendors and further amplify its benefits to the industry as well as the nation.

In implementing the scheme, Petronas said the participating organisations will be supported in the areas of business development, financial management, technical and ICT by seven agencies, namely SIRIM Bhd; Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR); Malaysia Digital Economy Corp Sdn Bhd (MDEC); MIMOS Bhd; National Institute of Occupational Safety and Health (NIOSH); Talent Corporation Malaysia Bhd (TalentCorp); and Association of Chartered Certified Accountants Malaysia (ACCA).

Petronas President and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the company’s commitment is to nurture local entrepreneurs to overcome high-entry barriers to the oil and gas industry and create a pool of vendors who can generate value.

“It is crucial to fortify the industry’s ecosystem through sustainable vendor development, more so in the current and challenging business environment. VDPx, an evolution of the current VDP, is initiated to further develop capabilities within the oil and gas industry while creating multiplier effects that benefits the industry and economy,” he said.

“We empower second-tier VDP anchors or contractors to develop their own ecosystem of vendors to support their businesses and the industry. Today’s signing of Memoranda of Understanding with these second-tier VDP anchors and industry enablers, marks a new dawn of collaboration within the oil and gas sector,” he added.

The MoU signing between Petronas and the participating organisations took place after the launch.

Trade and Industry Minister Darell Leiking, who officiated the launch, said the government will ensure that VDP continues to receive support in terms of training, capacity building, product development and enhancement as well as market promotion for Bumiputera vendors.

Leiking added that vendors have access to two programmes under the 11th Malaysia Plan — the Research & Commercialisation Grant (GPPV) with an allocation of RM30 million, and the Capacity Development Programme for Vendors (PPKV) with an allocation of RM31 million.

“The new Government is committed to enabling small players to become successful. It is about the platforms that we provide for you to do your best; success will come from enabling you to innovate fast. You can leverage on programmes like VDP to get to know and work with the best in your field,” he said.

“It is the government’s aspiration for anchor companies to participate in such development programmes to nurture Malaysian SMEs and to help them ascend beyond their comfort zone. VDP has resulted in multitudes of success stories that can be lessons to many entrepreneurs, especially the new kids on the block,” he added.

Established in 1993, Petronas’ VDP programme has helped 99 local companies thrive in the industry and awarded contracts worth more than RM8.3 billion.