Published on: Tuesday, January 26, 2016

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SINGAPORE: Downstream oil and gas activities will continue to remain robust in the Iskandar region against a backdrop of declining global crude oil prices.

"Downstream activities are the input to many sectors which are being promoted in the region," said Iskandar Region Development Authority (Irda) Chief Executive Datuk Ismail Ibrahim.

He said oil and gas were under the manufacturing sector which accounted for 30 per cent of committed investments in Iskandar.

Between 2006 and November 2015, this southern economic region had attracted investments of RM189 billion, he said on the sidelines of the Sustainable Eco-City Development Forum cum Forest City Global press conference recently.

Ismail said Iskandar would not be affected although Petronas were to reduce its operating and capital expenditure.

It was reported that Petronas aimed to cut a whopping RM50 billion in operating and capital expenditure over the next four years in the face of sliding global oil prices.

Ismail also said the spin-off effects from Petronas' Refinery and Petrochemical Integrated Development Project (Rapid) project in Pengerang would benefit the region as the oil and gas was stored in this region before it was sold.

Rapid's activities is focused towards oil refining and not oil processing as such the impact from plunging oil and gas prices would be minimal.

Meanwhile, Datuk Phang Ah Tong, Deputy Chief Executive Officer, Malaysian Investment Development Authority (Mida), Manufacturing & Services Development I, said companies involved in the oil & gas downstream segment would "smile throughout this period".

"The cost of raw materials are way much cheaper particularly to those involved in the plastics industry," he said.

As the local plastics manufacturing industry relies heavily on exports, "this is the time for them to make more profits as their cost is in ringgit while they sell in US dollars," Phang said.

There are about 1,200 plastics manufacturing companies, nationwide, employing a workforce of about 80,000 people.

In 2014, the Malaysian plastics industry registered a turnover of RM19.37 billion with plastics finished products accounting for 62 per cent or RM11.94 billion of total exported. – Bernama

Note the phrase,

"Companies involved in the oil & gas downstream segment would "smile throughout this period".

Yes,

Those who bought MphbCap at Rm1.37 today can smile as it is now Rm1.42.

When MphbCap crosses Rm2.00 then we can laugh.

But when MphbCap crosses Rm7.00 they will shout..

Will smile turns to laughter?

And will laughter progress to shouting in jubilation?