Malaysia

Basic Facts:

Government: Constitutional monarchy

GDP: $ 381.1 billion (2009 est.)

GDP Composition: 9.4 % Agriculture, 40.9 % Industry, 49.7 % Services

GDP Growth rate: – 2.2 % (2009 est.)

Budget Revenues: $ 45.01 billion

Budget Expenditures : $ 58.46 billion (2009 est.)

IndustryProduct: rubber and oil palm processing and manufacturing, light manufacturing, pharmaceuticals, medical technology, electronics, tin mining and smelting, logging, timber processing; Sabah logging, petroleum production; Sarawak agriculture processing, petroleum production and refining, logging.[1]

Maps: Click on the map(s) to enlarge:

Brief Overview

Malaysia is well endowed with conventional energy resources such as oil, gas and coal, as well as renewable energy sources such as hydro, biomass and solar energy. Malaysia domestic oil production occurs offshore, primarily near Peninsular Malaysia. At the end of 2007, Malaysia crude oil reserve, including condensate, was 5.5 billion barrels. Malaysia also has an abundant natural gas reserve. At the end of 2007, Malaysia proven natural gas reserves were 2,39 trillion cubic meters. Malaysia hydropower potential is assessed at 29.000 megawatts (MW); 85% of potential sites are located in East Malaysia. Biomass resources are mainly from palm oil, wood and agro-industries.[2]

Coal is one of the primary fuels in Malaysia energy sector. Coal is used primarily for power generation, and by the iron and steel industry and cement manufatures. Malaysia coal consumption in 2007 was 7.1 million tonnes of oil equivalent. Malaysia also imports coal from China, Australia, Indonesia and South Africa.[3]

Malaysia upstream energy development is governed by the Petroleum Development Act, which was enacted to streamline the economy upstream energy development. Under the Act, Petrolian Nasional Berhad (PETRONAS) is vested with entire ownership and control of petroleum resources in Malaysia. PETRONAS is wholly owned by the Malaysian Government and supplies 40% of government revenue. PETRONAS is intensifying the exploration of deepwater and extra-deep water areas. In 2008, three new fields came onstream, increasing the total number of producing fields in Malaysia to 88, of which 61 are oil fields and 27 are gas fields. Four new production-sharing contracts were awarded during 2008, bringing the total 67, with 23 in Peninsular Malaysia, 21 in Sarawak and 23 in Sabah. The three new fields are Kikeh, Abu and Tabu. The Kikeh field is located about 1120 kilometers from Kota Kinabalu, capital city of Sabah, at a water depth of some 1300 meters and is jointly developed by Murphy Oil Corp and PETRONAS Cari Gali Sdn Bhd, a subsidiary of PETRONAS. Other deepwater fields under development are Gumusut-Kakap and Malikai fields. [4]

In terms of minerals, Malaysia was the world premier producer of tin until the late 1970s, supplying some 40 per cent of the world tin. In 80 due to the exhaustion of tin and a fall in tin prices, Malaysia was no longer a premier tin producer. However, bauxite and copper continued to contribute to the mining sector in the early 1970s. Malaysia no longer produces copper and silver because the country only copper mine the Mamut Mine near Ranau, Sabah ceased operations in October 1999. As much as 70 per cent of the industry remained under foreign control. This was a legacy of the British colonial era; many British firms, which had arrived in the 19th century to exploit Malaysia mineral resources, had not departed yet.[5]

Malaysia is endowed with over 33 different mineral types, comprising metallic, non-metallic and energy minerals, worth several billion dollars in economic potential. Production of mineral fuels includes coal, natural gas and crude petroleum. Production of processed mineral products includes cement, LNG, nitrogen fertilizer materials (ammonia and urea), refined petroleum products, crude steel, titanium dioxide pigment, and refined tin. Malaysia has large resources of tin and such tin-associated minerals as ilmenite, monazite and struverite, which is a columbium (niobium)-tantalum-bearing mineral.

Government body: Ministry of Energy, Green Technology and Water; Energy Commission that has been the regulatory agency for electricity and piped gas supply industries in Malaysia since 2002, replacing the Department of Electricity and Gas Supply; the Energy Unit of the Economic Planning Unit of the Prime Minister Office; Department of Mineral and Geoscience.

National company: Petrolian Nasional Berhad (PETRONAS)

External company: –

Current condition:

No. Category Production

Consumption

Country Revenue
1. Oil 735,000 bbl/day (2008 est.) 547,000 bbl/day (2008 est.)
2. Gas 57.3 billion cu m (2008 est.) 26.27 cu m (2008 est.)
3. Coal 1,06 tonnes (2007)
4. Minerals (metallic and industrial minerals 151,7 tonnes (2007)[6] 6.3% to GDP

* Note: production of crude oil (including lease condensate), natural gas plant liquid and other liquids, and refinery processing gain (loss)

Source: APEC Energy Outlook 2009; Department of Minerals and Geosciences, Malaysia (accessed from www.malaysianminerals.com/overview.html)


[1] CIA Worldfact

[2] Asia Pacific Energy Research Centre (APREC) and The Institute of Energy Economics Japan, APEC Energy Overview 2009, March 2010, p. 95.

[3] Ibid., p. 96.

[4] Ibid., p. 98.

[5] Malaysian minerals: Overview, accessed from www.malaysianminerals.com/overview.html

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