The Ministry of International Trade and Industry (MITI) is hoping that Petronas would extend the term of its vendors development program (VDP) by another five years from its present five-year term.
This would enable the participating companies to get returns from their investment and compete internationally, said its deputy minister Datuk Mukhriz
Mahathir.
The present term is too short for some companies, he said.
"We are hoping that there could be a 5+5 years VDP for the companies," he told reporters after the official opening of Efficient Technology Sdn Bhd (EFFTECH)''s new building at the Tebrau Industrial Area 3 here today.
Under the VDP, Bumiputera contractors are appointed by Petronas to supply products or services for a specific period with the objective of developing the selected contractors into competitive and resilient Bumiputera entrepreneurs capable of manufacturing, supplying and providing high quality services.
"It is our hope that Petronas will not only continue to enhance the VDP but also bring in more companies and look into how long the companies (could) remain in the VDP," Mukhriz said.
He said in the oil and gas industry, most if not all the companies have huge capital expenditure and it would take them years, and at times exceeding the term of their participation in the VDP, to get returns from their investment.
At the same time the government expects them to continue investing amid the evolving technologies, he said, pointing out the reasons for seeking the extension on the VDP term.
Apart from that, these companies also need to upgrade their technology know-how and buy new equipments.
This matter was brought up to the ministry by the VDP participants, he said.
Mukhriz also disclosed that in a discussion with Petronas, the latter had said it would positively consider extending the term on a case-by-case basis.
--BERNAMA
