BLUE ECONOMY FRAMEWORK TO BE FINALISED BY END-2025 - RAFIZI

KOTA BHARU, Nov 17 (Bernama) -- A framework and strategy for blue economy is being developed at the Ministry of Economy and is expected to be completed by the end of 2025, said Economy Minister Rafizi Ramli.

He said the blue economy involves the ocean, including fisheries, and utilising the sea as a source for generating energy.

“There are also industries related to the sea that can be developed, such as marine engineering and others.

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“The blue economy is very relevant to Kelantan and Terengganu because both states have long coastlines,” he added.

He said this at a press conference after the ministry's engagement session on the 13th Malaysia Plan (13MP) with the Kelantan government at Kompleks Kota Darulnaim here today.

He noted that both states have traditionally been involved in fishing activities.

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"Therefore, I hope that we can work together with the state government to explore how to harness the potential of the blue economy once the framework is finalised and launched by the federal government," he said.

Meanwhile, Rafizi said oil and gas production in Peninsular Malaysia has been declining as new discoveries are increasingly concentrated in Sabah and Sarawak.

He noted that these resources previously contributed significantly to national economic growth and income distribution, but are now mainly found in the two East Malaysian states.

“In Peninsular Malaysia, we have been depleting our oil and gas resources over the past decade. Around 10 years ago, our oil production stood at approximately 700,000 barrels per day, but it has now dropped to 350,000 barrels per day.

“The country must expedite its energy transition process. In this context, the government needs to implement certain policies, including subsidy restructuring,” he said. 

Rafizi said the oil and gas resources in Sabah and Sarawak are primarily utilised to meet the consumption needs of the two states.

He added that there are ongoing considerations to reassess how revenue from Sabah and Sarawak's resources is distributed.

“In addition to meeting the demands of Sabah and Sarawak, a significant portion of these resources is exported and tied to long-term agreements with buyers,” he said. 

Rafizi said the depletion of oil and gas resources in Peninsular Malaysia poses a major challenge for the government in allocating and distributing funds to the states.

-- BERNAMA