Petronas urges Malaysia’s OGSE industry to boost innovation, expand globally and strengthen competitiveness, with RM2.2 billion in vendor financing approved
KUALA LUMPUR: Malaysia’s oil and gas services and equipment (OGSE) industry is well-positioned for its next phase of growth and must continue building scale, accelerating innovation and developing differentiated capabilities to compete more effectively on the regional and global stage, according to Petroliam Nasional Bhd (Petronas).
Its vice president for Group Procurement, Rashidah Alias, said the Malaysian OGSE industry has made significant progress over the years, building a strong track record in delivering increasingly complex projects and integrated solutions across the energy value chain.
“The industry has largely proven its capability. The next challenge is how we can build greater scale, strengthen technology differentiation and develop solutions that can compete beyond our domestic market.
“Malaysia already has a strong foundation. The opportunity now is to build on that foundation through greater collaboration, investment in innovation and continuous capability enhancement, so that our companies remain relevant and competitive in a rapidly evolving industry,” she said.
Rashidah said this during a fireside chat entitled “Building a Resilient Malaysian OGSE Ecosystem from Petronas’ Perspective”, at Oil and Gas Asia (OGA) 2026 from Sept 2-4, 2026.
Malaysian Oil and Gas Services Council (MOGSC) president Zahris Sham Abu Musa moderated the session.
Rashidah said collaboration can serve as a powerful catalyst for growth by enabling companies to combine complementary strengths, pursue larger opportunities and invest more effectively in technology, talent and innovation.
At the same time, she stressed that long-term industry progress must continue to be anchored on market discipline and competitiveness.
“Capability development and competitiveness must go hand in hand. Competitiveness is essential for continuous improvement. It drives innovation, productivity and the development of capabilities that allow companies to compete confidently across different markets and operating environments.
“Ultimately, success will be when our companies are recognised among the best in the industry for their capabilities, innovation and execution excellence,” she said.
Rashidah also highlighted the importance of continued investment in technology, talent and proprietary solutions, noting that future competitiveness would increasingly depend on a company’s ability to improve productivity, deliver differentiated value and adapt to changing market demands.
She added that Petronas remains committed to working closely with industry stakeholders, including MOGSC and the Malaysia Petroleum Resources Corporation (MPRC), to further strengthen the resilience, competitiveness and long-term sustainability of Malaysia’s OGSE ecosystem.
Meanwhile, in a separate session, Petronas Group Procurement (Downstream and Gas Procurement) senior general manager Wee Lian Hong highlighted the company’s continued focus on strengthening industry capabilities, advancing sustainability efforts, enhancing access to financing, and fostering greater collaboration with industry players through various strategic initiatives.
He said Petronas’ Vendor Development Programme (VDP) remains one of the group’s key initiatives to develop companies capable of competing internationally, with its extension to VDPx through collaboration with major industry players to accelerate small and medium enterprise (SME) development.
“To date, Petronas has nurtured about 170 small and medium enterprises (SMEs) through its VDP and VDPx initiatives, with 20 companies successfully expanding into international markets. Through its Vendor Financing Programme (VFP), Petronas has also partnered with nine panel banks to improve access to financing for eligible vendors, facilitating approximately RM2.2 billion in funding approved by participating financial institutions.
“In terms of sustainability, the Petronas Supplier Support Programme is offered at no cost to participating vendors and has already onboarded about 1,082 suppliers, with more than 35 training sessions conducted to strengthen environmental, social and governance (ESG) compliance and sustainability reporting,” he said.
He added that Petronas will continue providing a structured platform and catalytic support through initiatives aimed at strengthening the OGSE sector’s competitiveness, sustainability and long-term growth.