RM1 BLN MARITIME & LOGISTICS FUND TO BENEFIT OGSE PLAYERS -- MPRC

KUALA LUMPUR, Oct 7 (Bernama) -- The RM1 billion Maritime and Logistics Fund, as announced in Budget 2023 today, is expected to benefit oil and gas services and equipment (OGSE) players, said the Malaysia Petroleum Resources Corp (MPRC).

Its president and chief executive officer, Mohd Yazid Ja’afar said the financing could be utilised in the construction and repair of local offshore support vessel (OSV) service providers to support the offshore oil and gas operations throughout the country.

“MPRC has been actively engaging with the Malaysian OSV Owners Association, Association of Marine Industries of Malaysia and Petronas to understand the issue of ageing ships which requires the construction of up to 100 new ships, as well as the repair of existing ships,” he said in response to the Budget 2023 announcement.

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The announcement comes after a tumultuous period for the OGSE players during the 2020-2021 lockdowns and a slowdown in economic activities by major economies as a result of the COVID-19 pandemic, which also saw a plunge in oil prices due to reduced global demand for hydrocarbons.

On the RM9 billion financing guarantee scheme by Syarikat Jaminan Pinjaman Perniagaan (SJPP) for small and medium-sized enterprises (SMEs), including oil and gas vendors, Mohd Yazid said the scheme would allow local OGSE companies to draw down much-needed funds mainly in the post-COVID-19 era that has resulted in depletion of cash-in-hand among OGSE players.

“We hope financial institutions and development financial institutions could also play their role in the risk and credit assessment in relation to the OGSE industry; and that the financing guarantee scheme will increase the eligibility of more OGSE companies to secure funds for their operations,” Mohd Yazid said.

Furthermore, MPRC supports Budget 2023’s reinforcement of the sustainability agenda, including the announcement of the development of a sustainability framework by government-linked companies and government-linked investment companies.

“We are optimistic that the sustainability framework could serve as a reference point for the National OGSE Sustainability Roadmap and Framework to be developed by MPRC in 2023 and 2024,” he added.

-- BERNAMA