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GAC is stepping up its game to support Malaysia’s growing energy sector, as strategic investment and innovative exploration fuel a boom that could see the country become an important regional hub.
Recent developments in the upstream market point to a thriving market for oil and gas with significant investment has been ploughed into upstream activities including engineering, procurement and construction projects, as well as technology like carbon capture.
Investor confidence
Exploration in Malaysia in the past five years have increased production, solidified its standing in the global energy market and acted as a magnet for foreign investment. Reports from the Malaysian Investment Development Authority (MIDA) indicate that foreign direct investment (FDI) inflows have exceeded pre-pandemic levels, reaching RM48.1 billion (USD10.2 billion) in 2021, up from RM32.4 billion (USD 6.0 billion) in 2019.
Oil and gas investments in Malaysia rose by 10.7% (USD5.3 billion) in 2023 and are projected to grow 4.8% in 2024 as key projects - including the development of the Kasawari, Jerun and Timi gas fields - are slated to address the nation's energy needs. The low-carbon industry is also expected to see substantial growth in 2024.
This is largely attributed to a high level of investor confidence in Malaysia’s economic policies and stability as well as a response to strategic initiatives to boost the nation’s oil and gas production capabilities.
Beyond
The country’s energy plans go beyond traditional oil and gas exploration, combining conventional energy development with sustainable solutions in a bid to meets current demand while progressing towards a greener future. Such strategies are crucial for long-term growth and stability in the energy sector.
Bintulu Port Holdings in Sarawak has seen significant growth due to its strategic location and investments in LNG infrastructure, making it a critical node in Malaysia’s energy export chain. Similarly, Westports Malaysia – one of southeast Asia’s busiest ports – has expanded its facilities to accommodate increased energy-related cargo, including deeper berths and enhanced container handling capabilities.
Renewed push
GAC Malaysia has been actively involved in supporting major energy players, particularly in the tanker business, freight forwarding and customs clearance for high-value cargo.
Its Managing Director, Herman Jorgensen, says: “We have seen a wealth of investment make its way into Malaysia, and we have responded with a renewed push for GAC’s shipping, logistics and marine services to support new and restarted projects. This includes for mob and demob services, customs clearance, and bunkering.
Transformative
Malaysia’s burgeoning energy sector presents transformative opportunities for the logistics and maritime industries. Increased investments and strategic infrastructure development will play a pivotal role in supporting and sustaining Malaysia’s energy ambitions.
As the nation evolves as a global energy hub, the synergy between energy production and maritime logistics will be crucial in driving economic prosperity and industrial growth. GAC stands ready to support that growth and ensure that Malaysia can become an energy powerhouse.
