Monday, October 25, 2010

ETP: Energy sectors to grow 5pc a year

The government has set an ambitious goal of a five per cent annual growth for the oil, gas and energy sectors in the decade from 2010 to 2020, against a backdrop of the natural two per cent decline in oil and gas production.


The target translates into an increase of RM131.4 billion for the period from 2010 to 2020.

"Beyond economic growth in this decade, the oil, gas and energy sectors are also responsible for building a sustainable energy platform for the people and business, in this decade and into the future," the government said at the launch of the Economic Transformation Programme (ETP) : A Road Map for Malaysia, here today.

The Roadmap was launched by the Prime Minister Datuk Seri Najib Tun Razak.

A total of 12 entry point projects (EPP) as well as two-business opportunities within the oil, gas and energy sector have been identified. Oil, gas and energy are among the important National Key Economic Areas (NKEAs).

The EPPs will contribute RM47.1 billion to Gross National Income (GNI) to meet 2020 targets.

An additional RM61.2 billion will come from business opportunities and baseline growth.

Thus, the NKEA expects to deliver a RM131.4 billion GNI impact and create an additional 52,300 jobs in the oil, gas and energy sectors.

A significant proportion of these will be highly-skilled jobs, with an estimated 21,000 (40 per cent) for qualified professionals such as engineers and geologists, with a monthly salary range of RM5,000-RM10,000.


The government said the incremental GNI includes RM23.1 billion of GNI from the multiplier effect created by the EPPs from other sectors.

The largest sources of the multiplier effect on the oil, gas and energy NKEA are palm oil, tourism and electronics and electrical NKEAs, for example, an increase in usage of energy due to an increase in tourists visiting Malaysia.

To achieve the target, the government and the oil, gas and energy sectors will focus on four thrusts, namely, sustaining oil and gas production, enhancing downstream growth, making Malaysia the number one Asian hub for oil field services and building a sustainable energy platform for growth.

The third thrust is about leveraging the nation’s strategic location at the centre of the Asia Pacific region and adjacent to international shipping lanes.

The EPP for this thrust includes attracting Multinational Companies to bring sizeable shares of their global operations to Malaysia.

As for the fourth thrust, it includes initiatives aimed at ensuring energy security for Malaysia as the nation strives for growth towards becoming a high income economy.

"This also involves reducing the reliance on fossil fuels while growing the power generation capacity," said the government. –- BERNAMA

Read more: ETP: Energy sectors to grow 5pc a year http://www.btimes.com.my/Current_News/BTIMES/articles/20101025154753/Article/index_html#ixzz13NY89BgU

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