National OGSE Industry Blueprint

National OGSE Industry Blueprint
2021- 2030

The National OGSE Blueprint (OGSE Blueprint) 2021-2030 was launched in April 2021 by Minister in the Prime Minister’s Department (Economy) to develop a robust, resilient and globally-competitive Malaysian OGSE sector which contributes to the sustainable development of National priorities.

The implementation and progress of the OGSE Blueprint is coordinated by Malaysia Petroleum Resources Corporation (MPRC), an agency under the supervision of the Ministry of Economy tasked with advancing the OGSE sector.

A robust, resilient, and globally competitive Malaysian OGSE sector which contributes to the sustainable development of National priorities

National OGSE Industry Blueprint’s Vision Statement

OGSE Indicators

Competitiveness

Industry Profit-before-tax. Based on total revenue of 2,286 core OGSE companies.

10%

~4%

-4.86% (2022)

Exports as a proportion of total revenue. Based on 26 public listed OGSE companies.

50%

32%

54% (2022)

Sustainability

Number of OGSE100 companies reporting sustainability practices.

88 companies (2022)

Number of companies in the Dow Jones Sustainability Index.

1 company (2022)

Resilience

Revenue per worker

RM1.4 mil
RM1.2 mil

RM1.3 mil (2022)

Revenue per company. Based on 2,286 core OGSE companies.

RM60 mil

~RM25 mil

RM31.78 mil (2022)

Quick Ratio

1.4
1.1

1.21 (2023)

(The higher the ratio the better)

Altman-Z Score

1.6
0.8

1.23 (2023)

(The higher the ratio the better)

Debt-to-Equity Ratio

0.7
1.3

1.09 (2023)

(The lower the ratio the better)

Proportion of revenues derived outside of O&G

25%
~12%

9.12% (2023)

(Higher percentage is better)

Development

Pipeline of VDP graduates.

60
~30

75 (2021)

Proportion of listed companies in the industry. 26 out of 2,286.

1.14% (2022)

Market share of SMEs. Based on total revenue of 2,286 core OGSE companies.

10%

12.8% (2022)

Number of billion-ringgit companies.

9 (2023)

Proportion of local principals in the industry.

80%

~70%

89% (2022)

XX Target end-state, 2030

XX Baseline based on 2019

XX Baseline (latest year available)

31 recommendations have been identified to drive the OGSE industry

A. Industry-wide recommendations:

INDUSTRY LEVERS

Government point of contact for OGSE
Industry consolidation
OGSE industry data depository
Industry-wide guidance on global OGSE trends and best practices
OGSE Company recognition

B. Technology development recommendations:

TECHNOLOGY LEVERS

Applied R&D centres to bridge academia and industry
R&D apprenticeship programme
Secondment of local talent to foreign R&D centres
Tech adoption financing, tax deductions, and tariff waivers
Overseas researcher outreach programme
In-shoring of R&D activities and high-value manufacturing from MNCs
OGSE Intellectual Property (IP) marketplace

C. Talent development recommendations:

TALENT LEVERS

Skilled worker retention programme
OGSE career promotion
Expansion of Engineering courses
Expert mentorship from ex-OGSE talents

D. Export capabilities recommendations:

EXPORT LEVERS

Orchestration of consortiums for OGSE players, with the facilitation of seed financing
Grants and/or tax breaks to OGSE segments that are nearly export-ready
Mitigation of export risk through debt collection, export risk insurance and arbitration
Engagements with foreign government / National Oil Corporations in high-potential markets
Energy Export Fund

E. Financial strength recommendations:

FINANCE LEVERS

OGSE financing Centre of Excellence
Financial management workshops
Alternative financing platform for OGSE
Special growth facility for nascent adjacencies

F. Bumiputera participation recommendations:

BUMIPUTERA LEVERS

1. Centralisation of OGSE Bumiputera assistance

Key Indicator	Latest figure
Industry Profit-before-tax	– 4.86% (2022) Based on PBT over total revenue of 2,286 core OGSE companies (Source: OGSE100 FY2022)
Export as a proportion of total revenue	54% (2022) RM20.7 bil of export over RM38.4 bil (Total revenue of 26 PLCs) (Source: OGSE100 FY2022)
Revenue per worker	RM1.3 mil (2022) Based on total revenue of 2,286 core OGSE companies over total number of workers (Total Revenue Source: OGSE100 FY2022) (Total Number of Workers Source: BCG Analysis for OGSE Blueprint, 2019)

Key Indicator	Latest figure
Number of OGSE100 companies reporting sustainability practices	88 companies (2023) (Source: NOS-R)
Number of companies in the Dow Jones Sustainability Index	1 company (2023) – MISC Berhad (Source: Annual report MISC Berhad)

Key Indicator	Latest figure
Revenue per company	RM31.78 (2022) (Source: OGSE100 FY2022)
Quick Ratio	1.21 (2023) The higher the ratio the better (Source: 26 OGSE PLCs Annual report FY2023)
Altman-Z Score	1.23 (2023) The higher the ratio the better (Source: 26 OGSE PLCs Annual report FY2023)
Debt-to-Equity Ratio	1.09 (2023) The lower the ratio the better (Source: 26 OGSE PLCs Annual report FY2023)
Proportion of revenues derived outside of O&G	9.12% (2023) Higher percentage is better (Source: 26 OGSE PLCs Annual report FY2023)

Key Indicator	Latest figure
Pipeline of VDP graduates	71 (March 2023) (Source: PETRONAS/MEDAC)
Proportion of listed companies in the industry	1.14% (2022) 26 out of 2,286 (2022) (Source: OGSE100 FY2022)
Market share of SMEs	12.8% (2022) Based on total revenue of SMEs (RM9.3 bil) over total revenue of core OGSE companies (RM72.7 bil) (Source: OGSE100 FY2022)
Number of billion-ringgit companies	5 (2021), 5 (2022) and 9 (2023) Bumi Armada, Dialog Group, MISC, Sapura, Yinson, Wah Seong, MMHE, Halliburton, FMC Wellhead (Source: Bursa Malaysia )
Proportion of local principals in the industry	89% (Jan 2022) (source: PETRONAS)