KUALA LUMPUR — June 18, 2019: The Refinery and Petrochemical Integrated Development (Rapid) project is set to begin commercial operations in the fourth quarter of this year to eventually turn Malaysia into a net exporter of refined fuels for the first time since 2008.
National oil company Petronas and Saudi Aramco in March last year formed two joint ventures to further their equal ownership and participation in operations of the project now still under construction at the Pengerang integrated complex (PIC) in Johor.
“This (Petronas and Saudi Aramco) joint venture marks a historic partnership between two of the world’s most successful national oil companies.
“The collaboration brings together vast resources, technologies, experience, expertise and commercial presence, much to the benefit of both companies and both countries,” Finance Minister Lim Guan Eng said at the Asian Oil, Gas and Petrochemical Engineering Exhibition here today.
He said Malaysia’s oil and gas sector is moving up the value chain to protect the country from excessive volatility seen in the upstream business segment.
“As Malaysia moves up the value chain in the oil and gas sector, it is also important to remember that the country is a diversified economy.
“In 2018, mining accounted for about 8.0 per cent of the country’s gross domestic product, while manufacturing contributed 22 per cent and services 57 per cent,” said Lim.
He said the country is also benefiting from the trade war between China and the United States through business relocations as well as trade and investment diversions.
According to Lim, the reorientation of the global supply chain and Malaysia’s competitiveness saw the country’s approved foreign direct investment in the manufacturing sector surging 127 per cent to RM20.2 billion in Q1 2019 from a year ago. The total approved FDI across all sectors in Q1 2019 also rose 73.4 per cent year-on-year to RM29.3 billion. — Bernama