MPRC: Budget 2023 Positive For OGSE Sustainability Drive

KUALA LUMPUR, 25 FEBRUARY 2023 – Budget 2023 will assist 2,009 oil & gas services and equipment (OGSE) small and medium-sized enterprises (SMEs) in their drive towards sustainability while creating a supportive environment for their recovery in the short-term.

“Following the initial recovery from the COVID-19 crisis seen last year, economies and businesses are now bracing for continued volatility from high commodity prices, supply chain disruptions and the ongoing Russia-Ukraine conflict. SMEs, particularly, will need sustained support to ensure they remain resilient amid the uncertainty.

“We welcome initiatives such as the approximately RM10 billion in financial assistance from Bank Negara Malaysia (BNM) to reduce SMEs’ financial burden and support business growth and up to RM20 billion in loan guarantees for SMEs focused on areas including high technology sectors from Syarikat Jaminan Pembiayaan Perniagaan (SJPP) as these could address some of the most pressing issues faced by OGSE SMEs,” says Mohd Yazid Ja’afar, President/CEO, Malaysia Petroleum Resources Corporation (MPRC).

He added that the loan guarantee for high technology SMEs could benefit OGSE companies exploring new businesses related to the energy transition. This could encompass renewable energies and low-carbon solutions such as hydrogen.

To this end, BNM’s RM2 billion in loans for sustainable technology start-ups and to help SMEs adopt low carbon practices, as well as the RM150 million from Khazanah Nasional Berhad to accelerate the development of environmentally-friendly projects, including driving the carbon market and reforestation, signals another positive development in promoting SME participation in taking climate action.

Budget 2023 also endorsed capacity-building and skills development programmes with the goal of ensuring that Malaysian workers have the skill sets required to meet the nation’s economic demands, the ever-changing labour market and access better employment.

This is also in line with efforts under the National OGSE Industry Blueprint (OGSE Blueprint) 2021-2030, which MPRC oversees, to maintain a sufficient talent pipeline for the OGSE industry to ensure the industry’s sustainability.

“Some prolific approaches to talent management include the Government’s attempts to coordinate international collaboration with foreign multinational corporations to provide apprenticeship opportunities in host countries where scholarships are provided. This is aligned with one of the OGSE Blueprint’s talent initiatives, namely the skilled worker retention programme,” adds Mohd Yazid.