KOTA BHARU: Oil and gas extraction in Peninsular Malaysia has declined by half over the past decade.
Economy Minister Rafizi Ramli said these resources, which had supported the country's economic growth and income distribution, were still abundant in Sabah and Sarawak following recent discoveries.
"Our oil and gas (resources) are depleting in the peninsula. Daily oil production, which was 700,000 barrels five to 10 years ago, has now fallen to 350,000 barrels per day.
"The decline in oil and gas resources poses a significant challenge for the government, particularly in distributing and allocating resources to states.
"In the peninsula, 30 per cent of our gas is imported to generate electricity for industries. If no measures are taken, we will become increasingly reliant on foreign countries," he said.
Rafizi was speaking at an engagement session on the 13th Malaysia Plan (13MP) organised by the ministry and the Kelantan government in Kompleks Kota Darulnaim today.
Present was Menteri Besar Datuk Mohd Nassuruddin Daud.
Rafizi said oil and gas resources in Sabah and Sarawak were used to meet the needs of those states.
"Apart from fulfilling Sabah and Sarawak's requirements, a substantial portion of these resources is exported under long-term agreements with buyers," he said.