Subsea: Malaysia positioned to be global oil & gas hub Read more: Subsea: Malaysia positioned to be global oil & gas hub

Malaysia is strategically positioned to be one of the world's four deepwater oil and gas hubs alongside the US, Brazil and Europe, said Subsea Asia chief executive officer Neil Gordon.

"Many (oil and gas) companies are looking at where they want to base themselves and Malaysia is in a good position (to become a global hub)," he said in an interview with Business Times here yesterday.

Gordon is in the city for the three-day Subsea Asia 2012 exhibition and conference to be held at the Kuala Lumpur Convention Centre. 

The conference will be held from today, while the exhibition will start tomorrow.

"Of course Malaysia is going to be a significant part for companies to look at and invest. Many UK companies will be here looking at how they would be developing their businesses, with the possibility of setting up base here.

"So, it's very significant opportunities for the local economy and supply chain," he said.

Gordon lauded the incentives and initiatives for the oil and gas sector announced by Datuk Seri Najib Razak under the 2013 Budget recently.

The Prime Minister announced a 100 per cent income tax exemption for a period of 10 years, exemption of withholding tax and exemption of stamp duty to be given to public-private partnership projects in the development of oil and gas industry.

"An incentive to attract investment is very positive for the industry and good for the area," he said.

Malaysian Exhibition Services Sdn Bhd (MES) general manager Alun Jones said the incentives will enhance the country's capability, especially in providing an ecosystem to support the development of the chain of refining, storage and trading of oil and gas.

"The incentives will also support the participation of private operators in the development of the oil and gas industry," he said.

On the Subsea Asia 2012, Jones said the organiser expects some 2,000 trade visitors from 25 countries to attend.

MES is the organiser of the exhibition segment of Subsea Asia 2012.

Subsea UK is the industry body and focal point for the entire British subsea industry and aims to increase business opportunities at home and abroad for the sector.