Move away from giving fuel subsidy: Jomo

December 5, 2019

Isn’t this a rerun of previous rhetoric?

Dateline 2019-10-08, NST:

The government has been urged to consider not giving fuel subsidy but rather encouraging more use of renewable energy.

Economist and former Council of Eminent Persons member Dr Jomo Kwame Sundaram said fuel subsidies were major distortion in markets.

“The government has been trying to reduce this subsidy. Fuel subsidies in all countries are basically benefit middle class rather than the low income group,” Jomo said on the sidelines of the Khazanah Megatrends Forum 2019 here today.

He said the government should rethink who benefit the most before subsidising the rakyat.

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O&G set to see increase in upstream activities on oil price rise

December 4, 2019

Dateline 2019-10-08, Malaysian Reserve:

THE gradual increase in oil prices is expected to drive a recovery in investment in upstream activities said Kenanga Investment Bank Bhd.

The research house said national oil and gas (O&G) company, Petroliam Nasional Bhd (Petronas), has maintained its capital expenditure (capex) by focusing on the upstream segment despite its commitment to deliver a higher dividend payout to the government.

The investment bank noted there has been an increased flow of engineering/construction jobs in the Middle East, while floater demand has jumped rapidly from South America.

Kenanga added that the benchmark Brent contract price has been showing signs of stability, trading within the US$55 (RM230.62) to US$70 per barrel range throughout the year.

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Malaysia to roll out targeted fuel subsidy from January

December 2, 2019

Dateline 2019-10-07, Nikkei:

Malaysia on Monday announced a long-delayed targeted fuel subsidy program in a move that economists said will shrink its hefty social assistance bill and demonstrate its commitment towards fiscal consolidation.

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MGA welcomes positive development on TPA for natural gas

December 1, 2019

Dateline 2019-10-03 NST:

Malaysian Gas Association (MGA) says the delivery of the first TPA (third-party access) liquefied natural gas (LNG) cargo next week will mark an important milestone in the gas market reforms that started in 2013.

That year, the first regasification terminal began operating in Sungai Udang, Melaka, enabling LNG importation.

“We welcome the agreement between Tenaga Nasional Bhd (TNB) and Shell Malaysia Trading Sdn Bhd for a trial third party cargo – the first since the TPA came into force,’ it said in a statement today.

MGA said the Gas Supply (Amendment) Act 2016, which is in operation since January 2017, allows third parties to sell gas, thus offer options to gas users, which works in the best interests of the consumers.

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Time for oil and gas to back Malaysia’s employment breakthrough strategy

November 30, 2019

Dateline 2019-10-04, Malay Mail:

When the International Monetary Fund’s Christine Lagarde spoke at the University of Malaya recently, she highlighted the need to improve career opportunities for Malaysian women and their levels of participation in the workforce.

According to the IMF, Malaysia’s labour force participation rate for women, when compared to some of the regional economies and the OECD average, is just above 54 per cent — low, both in absolute and relative terms. As a comparison, the participation rate for men is about 80 per cent.

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Innovation And Collaboration Are The Keys To Malaysia’s Energy Transition

November 29, 2019

Dateline 2019-06-27, Forbes:

Asia continues to be the fastest growing region in the world today. With its stable economic outlook, Malaysia remains at the center of the region’s development. However, rapid changes in the marketplace, stringent regulatory requirements, including environmental laws as well as geopolitical tensions, pose many challenges for businesses.

Despite these uncertainties and challenges, energy demand continues to shift towards Asia. Analysts project that primary energy demand in the region is expected to grow at 2.5 percent per annum and reach 7.1 billion tons of oil equivalent (btoe) in 2035, accounting for 42% of the world’s primary energy demand.

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Malaysia’s solar sector on the rise

November 28, 2019

Dateline 2019-10-02, Asean Post:

Malaysia’s solar photovoltaics (PV) industry is on the rise thanks to strengthening government support, growing investor confidence and reducing costs.

Already ASEAN’s biggest solar PV employers, Malaysia’s solar sector is well poised for more growth given the favourable conditions that are developing.

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Pay up 20% oil royalty or stop pumping in Sabah, says Jeffrey

November 26, 2019

Dateline 2019-09-30, FMT:

Sabah opposition leader Jeffrey Kitingan yesterday hit out at the Pakatan Harapan (PH) government over Dr Mahathir Mohamad’s remark that it is impossible to give the East Malaysian states the 20% oil royalty, calling this at odds with Putrajaya’s “Shared Prosperity” vision for the country.

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Why The Introduction Of The Petroleum Sales Tax In Sarawak May Not Appeal To Everyone

November 25, 2019

Ummm, the answer’s in the title?

Dateline 2019-09-30, The Malaysian Reserve:

IN NOVEMBER last year, the Sarawak state government announced a proposed sales tax on petroleum products to increase State revenue.

The five per cent sales tax on petroleum products include amongst others, crude oil, natural gas, LNG, chemical based fertilisers and gas-to-liquid products, and is expected to generate an estimated revenue of RM3.897 billion and diversify the State’s revenue base. Analysts say the amount, which has been factored in the State’s 2019 Budget, could be much higher.

Merely two months after, the State announced that the five percent sales tax will only be imposed on sale and delivery of petroleum products outside the State.

While introduction of a sales tax on petroleum products may result in improving the coffers of the State, in the long run the increased production cost may make the petroleum industry less attractive to investors.

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Sarawak has new formula for oil revenue-sharing, says CM

November 24, 2019

Dateline 2019-09-28, FMT:

The Sarawak government says it has a new formula on revenue-sharing with Petronas in a bid to recover its losses from royalties on natural gas and crude oil obtained from within its waters.

Chief Minister Abang Johari Openg said the new formula had been submitted to the federal government.

He said he was aware that government-owned Petronas is also an international company but that did not mean that the company could deprive the state of its revenue.

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