“In addition, we found that the top Malaysian players were not as severely affected when compared with their regional peers,” he added. This, according to the study, was partly due to the concentration of regional players in the upstream capital expenditure segments, such as fabrication as well as transportation and installation. The OGSE sector’s fixed assets amounted to RM120.8 billion in 2015, with MPRC100 companies holding a sizeable proportion or 96.9% of the sector’s total fixed assets during the year. The increase in fixed assets, the study shows, was driven mainly by construction and delivery of new assets already committed in the previous years. “This shows Malaysian OGSE companies have started taking measures to adjust to the new operating environment,” said Syed Azlan.

Source: The Edge Markets March 06, 2017 02:26 UTC