KUALA LUMPUR (Feb 9): The government has urged the oil, gas, services and equipment (OGSE) industry to move towards energy transition in line with the rising prominence of environmental sustainability.

Minister of Economy Rafizi Ramli said national and international priorities are moving quite quickly towards low carbon principles to address climate change which has created wider opportunities for the OGSE industry in other cleaner types of energy.

“We will need to ensure our OGSE players are geared towards the pivot and I suggest that more initiatives are incorporated into the OGSE Blueprint from this year,” he said at the third steering committee meeting of the blueprint implementation on Thursday (Feb 9).

Rafizi said the blueprint initiatives pave the way for OGSE companies to thrive in the future by elevating their capabilities to provide support services amid the energy transition, including strengthening their sustainability and capacity to move into adjacent industries beyond traditional oil and gas businesses, such as renewable energy.

The OGSE Blueprint 2021-2030 is an effort by the government to address existing structural challenges in Malaysia’s OGSE sector.

It has identified 31 initiatives across key levers including export, Bumiputera development, technology, industry and financial strength, and talent.

“Five new initiatives are expected to start in 2023, covering market access, financing and OGSE talent development,” Rafizi said.

One of the key achievements of the blueprint in 2022 was RM10 million committed to 42 OGSE small and medium enterprises for the OGSE development grant.

The grant aims to enhance competitiveness of the OGSE small and medium businesses by accelerating technology adoption and expanding their reach into export markets.