Strategies

The oil, gas and petrochemical industry is capital intensive, technology driven, has a long gestation period, and is cyclical in nature. Hence, the involvement has mainly been from the big players.

Moving forward, more opportunities will open up for the small medium enterprises (SMEs) as the focus shifts towards downstream petrochemical development.

The strategies implemented for the oil, gas and petrochemical cluster are:

• Expanding activities downstream
The future direction of the sector seeks to expand the activities of the industry in the downstream, manufacturing related sectors to add more value to existing output.

• Developing and diversifying into plastics and plastics-based industries
There will be strong promotions to encourage investments in plastics and plastics-related industries by deepening linkages between the various facilities and moving up the product value chain.

• Enhancing linkages with other downstream manufacturing
The strategy is to enhance linkages with the manufacturing cluster that will be focusing on automotive, electrical and electronics, and packaging industries.

• Upgrading the capabilities of existing support industries
This is particularly in developing more SMEs that can provide support and ancillary services to the upstream as well as downstream activities.

• Integrating the operations of three different locations
This is to further integrate operations of Kertih, Chukai, and Gebeng oil and gas infrastructure and facilities, where the current cluster is already established.

• Ensure efficient resource allocation
Ensure sustainable and sufficient energy supply while promoting market-based approach for efficient resource allocation.