Malaysia OGSE Industry Initiatives

PETRONAS VDP focuses on nurturing Bumiputera vendors to be resilient and sustainable to achieve the following objectives:

• Technically competent
• Commercially attractive
• Developing home grown technologies
• Fostering growth and going international
• Candidate for KLSE listing – long term objectives

The custodian of VDP is Ministry of Entrepreneur Development And Cooperative (MEDAC), responsible to regulate the programme and define the eligibility criteria for VDP Vendor which is meeting the SME requirement and minimum of 51% Bumiputera ownership.

VDP has evolved since its inception in 1993. The program has been successfully implemented and undergone various phases of learnings, in tandem with different challenges faced by the industry.

Today, PETRONAS VDP has produced world class Bumiputera companies that are able to compete in global markets with success stories of international footprint in over 30 countries, listed at Bursa Malaysia, awards & accreditation by international and local agencies and invention of Malaysian made products.

For further inquiries on VDP, please email to inquiry_vdp@petronas.com

PETRONAS has developed an innovative partnership with Malaysian financial institutions to facilitate Access to Financing (A2F) to its vendors via OGSE Vendor Financing Program (VFP). PETRONAS facilitates the program by providing verification platform on contracts awarded and performance of contractors.

By subscribing to this program, vendors will obtain credit facility faster and at favorable terms. It also aims to assist vendors in securing working capital and improve cash-flow for sustainability.

Please refer to the poster below to know more about the program and how to apply.

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In collaboration with Ministry of International Trade and Investment (MITI) and Malaysian Investment Development Authority (MIDA), PETRONAS has published the inaugural Malaysia Tax Incentives: Compilation and Guide for Oil & Gas Services and Equipment (OGSE) industry. 

The guide was produced to match as closely as possible to the activities in PETRONAS’ Licensing Standard Work and Equipment Categories (SWECs), aim to facilitate OGSE players investment decisions to spur Malaysia’s oil and gas industry.

There are 28 tax incentives identified relevant to the OGSE industry. The incentives listed in this guide are beneficial for the OGSE players’ financial planning and will ease their efforts in identifying the most suitable incentives for their respective businesses. 

Road To Bursa (R2B) program is established to support and facilitate local vendors to adopt corporate governance standards that qualify for Bursa listing. 

At minimum, the program aims to push vendors to strengthen its capabilities based on listing criteria.

Memorandum of Understanding (MoU) with various Investment Banks and Corporate Finance Advisors were formalized on 18 February 2020. The MoU was set to ease Oil & Gas Services and Equipment (OGSE) vendors’ selection of advisors who will support them with the Initial Public Offering (IPO) readiness.

The MoU, however, does not limit the OGSE vendors from selecting and working with other investment banks and corporate finance advisors. 

Please refer to the poster below to know more about the program.

PETRONAS has collaborated with Human Resource Development Fund (HRDF) and Construction Industry Development Board (CIDB) through its training institute, Akademi Binaan Malaysia (ABM) to implement a sustainable approach for local talent development.

This initiative helps to channel levy and training grants timely to the right skills through competent training providers and aims to increase number of Malaysian skilled workforce timely as required by industry.

The first edition of Industrial Skills Framework covers core and in-demand skill sets in Oil & Gas Services and Equipment (OGSE)  focusing on Maintenance, Turnaround and Projects for Onshore Facilities and Downstream Plants.

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Kindly visit www.hrdcorp.gov.my for more details.

PETRONAS has launched the Beyond Home initiative in collaboration with Malaysia External Trade Development Corporation (MATRADE) to facilitate, enable and nudge Malaysian oil & gas vendors to move out and capture global markets. The initiative aims to empower local vendors to be more competitive and resilient.

Various series of Beyond Home programs were implemented where vendors were exposed to series of talks ranging from how to understand local nuances of different countries, international business opportunities and tips/sharing presentation from vendors who have been successfully grow their business in other countries.

Click here to register as PETRONAS international vendor and learn about international tender opportunities.

Beyond Home Myanmar (2018) and Beyond Home 2019 events

For further inquiries or feedback on industry initiatives, please contact: