‘Chart new energy solutions’

KUALA LUMPUR: Countries in Asia must explore options to improve energy efficiency and affordability by diversifying its energy mix to address concerns over the sustainability of global economic growth, says Tun Dr Mahathir Mohamad.

The Prime Minister called upon industry leaders to enter into strategic dialogues on the challenges facing the industry, especially the possibility of opening new avenues for collaboration that tap into the knowledge and expertise of other sectors aimed at innovating new energy solutions.

“We must therefore recognise the potential of our neighbours to forge strategic alliances on the back of a Prosper-Thy-Neighbour policy that promotes the concept of shared prosperity. “Only then can we forge a new energy future that is sustainable and secure for generations to come,” he said in his keynote address at the Asia Oil and Gas (AOGC 2019) conference yesterday.

Dr Mahathir said in his speech at the AOGC in 2003, he had touched on the political and economic uncertainties, when the world witnessed geopolitical changes in the Middle East.Today, 16 years later, he said the situation and concerns remain relevant, adding that the Middle East is as turbulent as it was back then.“Whether we acknowledge it or not, the military expeditions of 2003 used democracy as their cause when it is widely accepted that it was merely a camouflage, a pretext to take control over the production of oil in these nations. “While the turmoil of 2003 and the subsequent years remain unabated, we are now facing an unprecedented economic crisis caused by the US–China trade war.

“At this point in time we will not know how it will fan out but even as it is, numerous casualties have fallen along the way and we can expect more to fall if it persists,” he added.

Dr Mahatir said in the Gulf, games of provocation create more uncertainties and have added stress on doing business, which will surely affect the oil and gas industry.

He however believed that the industry is a cyclical business and history has shown that it has the ability to respond quickly with systematic strategies.

Dr Mahathir said Asia, however, continues to position itself as a dynamic and vibrant market despite facing common challenges in the rising demand for energy, expanding energy access and meeting climate commitments.“Although reliance on fossil fuels is expected to remain intact, Asia has made great strides in utilising less carbon-intensive fossil fuels such as natural gas.

“Malaysia is among the largest exporters of liquefied natural gas (LNG) to countries such as Japan, South Korea and Taiwan, to provide power for their economies.

“Also, renewable energy is seen to have doubled in the region in five years with China and India leading the pace,” he said.

Dr Mahathir also noted that Petroliam Nasional Bhd (Petronas) is spearheading an industry-wide study with various agencies to develop an Oil, Gas, Energy and Environment White Paper on Malaysia’s future energy landscape.

The study, he said, supports the country’s aspirations to be a low-carbon economy with a blueprint on energy policies that will stimulate action towards achieving Malaysia’s Paris Agreement pledge.

Meanwhile, in a press conference, Dr Mahathir said that credit rating agency Moody Investors Service’s assessment of Petronas isn’t necessarily right.

“Sometimes assessments aren’t exactly right but Malaysia cannot criticise them as they are free to make their own evaluation.

“They are free to do their assessment but I believe that this downgrade will not affect Petronas,” said Dr Mahathir.

Asked if Malaysia is prepared to face downgrades from other credit rating agencies, Dr Mahathir said it is up to the agencies.

“If they want to (downgrade), then let them. We cannot necessarily follow all the opinions of credit rating agencies,” he added.

Last Friday, Moody’s Investors Service downgraded Petronas’s ratings to A2 (stable) from A1. Based on Moody’s updated assessment, Petronas no longer meets one of the characteristics required for a two notch uplift above sovereign (A3 stable).

Petronas, in a statement Saturday, emphasised that its strong fundamentals remain unchanged despite the downgrading.