Malaysia
Singapore
Philippines
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Malaysia is set to deepen its commitment to a low-carbon economy through the 13th Malaysia Plan (2026-2030) and the newly announced Budget 2025, according to Datuk Nor Azmie Diron, Secretary-General of the Economy Ministry. In a keynote address delivered at the National OGSE Blueprint Forum 2024 by Deputy Secretary-General Datuk Luqman Ahmad, Nor Azmie highlighted the role of energy transition in transforming the country’s economic landscape, with a particular focus on the oil & gas and oil & gas services and equipment (OGSE) sectors.
“Our commitment to a decarbonized future will have major implications for oil & gas and energy industries as well as the OGSE supply chain,” Nor Azmie noted. He emphasized the potential for Malaysia’s traditional energy sectors to adapt and thrive by adopting sustainable business models that align with the country’s environmental goals.
Oil & Gas Transition and Future Growth
While the oil & gas industry has long been a critical driver of Malaysia’s economy, contributing substantially to GDP, job creation, and infrastructure development, Nor Azmie underscored the need for the sector to evolve. Through energy transition strategies and innovative business models, the OGSE sector can continue to contribute to economic growth while reducing its environmental impact.
“We aim to ensure a holistic response to Malaysia’s energy transition and economic growth journey,” he added, pointing to the government’s collaborative efforts with the Malaysia Petroleum Resources Corporation (MPRC) and the OGSE Blueprint. These partnerships provide resources and guidance to help OGSE companies navigate the low-carbon shift and capitalize on government support services for sustainable growth.
Leveraging Free Trade and Global Partnerships
The shift towards a low-carbon economy is being bolstered by Malaysia’s involvement in international agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the country’s recent BRICS partner status. Nor Azmie encouraged the OGSE sector to view these developments as avenues to explore new markets and partnerships, positioning Malaysia as a competitive, sustainability-focused economy on the global stage.
“These developments are strategic opportunities for businesses to expand and enter new markets through international collaborations,” he said.
Supporting the OGSE Sector
The government’s ongoing support for the OGSE sector aims to bridge policy aspirations with industry needs, offering guidance on transitioning to a sustainable, low-carbon framework. Through collaboration with MPRC, the government’s initiatives target sector-specific support, ensuring that OGSE companies are prepared to adapt to Malaysia’s evolving energy landscape.
Balancing Economic and Environmental Goals
The 13th Malaysia Plan and Budget 2025 marks a significant step towards integrating sustainable practices within Malaysia’s oil & gas and energy sectors. By leveraging both domestic initiatives and international partnerships, Malaysia is positioning itself to achieve long-term growth while safeguarding the environment. This approach will provide opportunities for the OGSE sector to evolve alongside the global shift toward decarbonization, contributing to Malaysia’s broader economic objectives.
With a focus on innovation, collaboration, and environmental responsibility, Malaysia is gearing up to be a leader in the global green transition, with the oil & gas sector playing a key role in the country’s economic transformation and sustainable future.