SINGAPORE: Peninsular Malaysia’s oil and gasoline manufacturing has fallen by half over the previous decade, with new reserves now concentrated in Sabah and Sarawak.
From 700,000 barrels per day 10 years in the past, manufacturing on the peninsula has fallen to 350,000 barrels per day, Economy Minister Rafizi Ramli stated on Sunday (17 November) throughout his ministry’s engagement session in Kelantan with the state authorities .
Malaysia should speed up its transition to wash vitality as oil and gasoline stay key drivers of its financial progress and earnings distribution, Rafizi stated. According to the Malaysian Investment Development Authority, the oil and gasoline sector contributes about 20% to the nation’s annual gross home product.
“The nation should speed up the vitality transition course of. In this context, the federal government must implement some insurance policies, together with restructuring subsidies,” Rafizi stated with out elaborating.
Last month, in his funds speech, Prime Minister Anwar Ibrahim had introduced a reduce in subsidies for essentially the most extensively used RON95 petrol in Malaysia for the highest 15% earnings bracket.
“In the peninsula, 30% of our gasoline is imported to generate electrical energy for industries and if no motion is taken, we’ll develop into more and more depending on international international locations,” Rafizi added.
The decline of oil and gasoline extraction on the peninsula might additionally pose a big problem to the federal government, particularly in allocating and distributing funds to Malaysian states, he stated.
Malaysia is the second largest oil producer in Southeast Asia and the world’s third largest exporter of liquefied pure gasoline (LNG), with the nation’s oil reserves situated primarily off the coasts of Kelantan, Terengganu, Sarawak and Sabah.
According to the federal authorities, Sarawak’s possible and confirmed oil reserves symbolize 60.87% of Malaysia’s complete reserves, whereas Sabah’s represent about 18.8%.
