SINGAPORE: Peninsular Malaysia’s oil and gas production has dropped by half in the last century, with new deposits now concentrated in Sabah and Sarawak.
From 700, 000 barrels a day 10 years ago, production in the peninsula has decreased to 350, 000 barrels daily, Economy Minister Rafizi Ramli said on Sunday ( Nov 17 ) at his ministry’s engagement session in Kelantan with the state government.
According to Mr. Rafizi, Malaysia needs to accelerate its shift to clean energy because oil and gas are still significant contributors to its economical growth and income distribution. The oil and gas industry accounts for 20 % of Malaysia’s monthly gross domestic product, according to the Malaysian Investment Development Authority.
The transition to power in the country may be made more quickly. In this framework, the government needs to employ particular policies, including payment reform”, Mr Rafizi said without elaborating.
In his budget speech last month, Prime Minister Anwar Ibrahim announced a rebate cut for Malaysia’s top 15 % money group’s RON95 gasoline.  ,
” In the coast, 30 per cent of our oil is imported to generate power for business and if no actions are taken, we will be increasingly rely on foreign places”, Mr Rafizi added.
According to him, the state may have to deal with a major problem as a result of the peninsula’s declining oil and gas extraction, particularly in terms of funding distribution and allocation.
Malaysia is the second-largest oil producer in Southeast Asia and the world’s third largest exporter of liquified natural gas ( LNG ), with the country’s oil reserves mainly located off the coasts of Kelantan, Terengganu, Sarawak and Sabah.
According to the national government, Sarawak’s plausible and proven reserves of petroleum represent 60.87 per share of Malaysia’s full reserves, while Sabah’s make up around 18.8 per cent.