KUALA LUMPUR: Local oil and gas (O&G) players should accelerate their digital transformation through technologies, such as 5G, to maintain their competitiveness in an increasingly challenging energy market, says Gobind Singh Deo.
The Digital Minister said the increased use of 5G-enabled intelligent systems such as industrial IoT, drones, robotics, extended reality (XR), and artificial intelligence (AI) enhanced operational efficiency and safety.
"5G is among the key technologies that is gaining importance. The technology, which offers ultra-high speed coupled with low latency communication between control hubs, production sites and vessels, helps to streamline the growing complexity in operational activities," he said in a speech at the inauguration ceremony on the deployment of a private 5G network at the Petronas LNG Complex in Bintulu, Sarawak.
This deployment is a collaboration between Petronas and Telekom Malaysia, and is supported by Digital Nasional Berhad.
Gobind added that the adoption of 5G technology in the O&G sector globally was growing steadily.
"According to a ResearchAndMarkets.com report, while specific adoption rates can vary, the global market for 5G in oil and gas is expected to grow at a compound annual growth rate (CAGR) of nearly 26 per cent from 2023 to 2030.
"Energy companies around the world are racing to modernise their operations, and I applaud Petronas, TM and DNB for taking the lead in digitalising Malaysia's energy sector," he said.
He added that the ongoing effort to accelerate 5G adoption among various enterprises was crucial for Malaysia's digital transformation.
"I am happy to note that more and more Malaysian enterprises, from large multinational corporations to SMEs, are discovering how 5G can enable a multitude of digital solutions to improve productivity and increase operational efficiency and safety across critical production processes.
"We are seeing the development of private 5G networks and use cases undergoing proof-of-concept trials within the manufacturing, transportation and logistics industries, among others.
"5G is also powering smart city solutions in municipalities and townships such as Putrajaya," he said.
Such efforts, Gobind said, truly aligned with the ministry and the Madani government's vision to transform Malaysia into a digital nation.
The O&G sector contributes approximately 20 per cent to the nation's gross domestic product.
The sector's ecosystem comprises more than 3,500 O&G businesses in Malaysia, including international oil companies, support and service providers, as well as manufacturers.