JOHOR BAHRU (BERNAMA) – Budget 2021 reflects a balance in the government’s efforts to provide the wherewithal to overcome COVID-19 and jump-start economic recovery, said Johor Petroleum Development Corp Bhd (JPDC).
Its Chief Executive Mohd Yazid Ja’afar said JPDC which is mandated to develop the downstream oil and gas industry at Pengerang Integrated Petroleum Complex (PIPC), in Kota Tinggi, Johor, lauded the fiscal initiatives as a catalyst in redeveloping the economy in the face of the pandemic.
In tabling Budget 2021 on Friday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz told the Dewan Rakyat that the government will be allocating MYR1 billion for a technology and high value investment incentive package.
He also said a MYR500 million High Technology Fund will be provided by Bank Negara Malaysia to support high-tech and innovative sector companies to help them drive their business forward.
“We believe the high-tech and value-added investment incentive package, supported by the provision of infrastructure and facilities for industrial areas, can attract new investors to explore business opportunities in Malaysia, as well as help existing domestic and foreign investors to grow their business and spur economic recovery,” Mohd Yazid said in a statement yesterday.
He said Malaysians affected by the economic downturn due to the pandemic now had the opportunity to undergo training to improve or acquire new skills, especially in the high-tech sector.
JPDC, he said, was ready to contribute ideas and energy to make the Budget 2021 initiative a success.
Since 2013, JPDC has been actively conducting skills training programmes for the downstream oil and gas industry, in collaboration with technical and vocational training institutions (TVET).
As of October 31, over 4,000 Malaysian workers have undergone training programmes under the auspices of JPDC. Mohd Yazid added that efforts to boost the development of industrial areas will have a positive impact on restoring the small and medium enterprise (SME) segment.
Since the project development of the PIPC, he said there has been a significant spillover effect on the growth of local enterprises in the area, including the food and beverage business, grocery stores and service providers.
In regard to the 8,903-hectare PIPC development, he said JPDC would continue to attract new investor candidates in oil storage and processed products, oil refining, petrochemical processing and manufacturing of petrochemical-based products to explore opportunities for development of phase two.
In the first phase of the PIPC development (2012-2019), two projects by two catalyst investors started operating.
Oil and gas technical services provider, DIALOG Group and its partners have developed Pengerang Deepwater Terminals, a 1.3 million cubic metre oil storage facility, complete with deep seaport facilities sited on a 526 ha with an investment value of USD2.5 billion.
National oil and gas company PETRONAS is in the process of completing the development of the PIPC in an area of about 2,510 ha, comprising oil refineries, petrochemical processing plants and various support facilities with an investment value of USD27 billion, including a joint venture with Saudi Arabian multinational petroleum and natural gas company Saudi Aramco.