KUALA LUMPUR: The Malaysia Petroleum Resources Corporation (MPRC) hopes that Budget 2026 will reinforce support for the Oil and Gas Services and Equipment Industry Blueprint 2021-2030 Mid-Term Review.
This support is seen as crucial in enabling small and medium-sized enterprises to innovate and advance their sustainability transition.
MPRC president and chief executive officer Mohd Yazid Ja’afar said the national budget represents a strategic opportunity to align fiscal priorities with the evolving needs of the OGSE industry.
He stated that the focus is especially on helping SMEs to strengthen their innovation capacity and competitiveness.
“As Malaysia continues to implement the MADANI Economy Framework and prepare for the 13th Malaysia Plan starting 2026, the MPRC remains confident that Budget 2026 will reinforce the country’s commitment to inclusive growth, environmental stewardship and industrial competitiveness,” he told Bernama.
MPRC’s wish list focuses on enabling OGSE SMEs to participate meaningfully in emerging areas such as the blue economy and carbon capture, utilisation and storage.
These priorities are also aligned with the National Energy Transition Roadmap and the OGSE Blueprint MTR overseen by MPRC.
For Budget 2026, the agency is calling for tailored financing mechanisms to help OGSE SMEs undertake research and development and energy transition projects.
It also seeks cost recovery incentives such as tax exemptions for specialised skills training programmes.
MPRC proposed a 10 million ringgit incentive fund to support SMEs in environmental, social and governance adoption and greenhouse gas emissions reporting.
It also requested allocations to accelerate the uptake of low-carbon technologies to ensure a fair transition.
Additionally, it has requested tax exemptions for companies participating in the OGSE strategic partnership initiative.
This particularly applies to the Regional Champions Development Programme outlined in the blueprint.
“With the right fiscal measures, OGSE companies, especially SMEs, can play a pivotal role in shaping Malaysia’s sustainable economic future,” Mohd Yazid said. – Bernama