4.2.4 4.2.5 4.2.6
Sector Institutional Framework ............................................................................................... 111 Evolution of Local Capabilities and Market Structure ......................................................... 111 Management of Oil Wealth ...................................................................................................... 113
4.3 Local Content Policies ...................................................................................................................... 113 4.3.1 Policy Objectives ....................................................................................................................... 113 4.3.2 Policy Tools ................................................................................................................................ 115 Localization of Petroleum Workforce ................................................................................................ 115 Target Quotas for Foreign Staff Employed by Subsoil Users ...................................................... 115 Limitations on Granting of Work Permits ..................................................................................... 116 Minimum Budget Dedicated to Training of Local Workforce .................................................... 116 Domestic Sourcing of Goods, Works, and Services .......................................................................... 116 Goods, Works, and Services Procurement Rules .......................................................................... 116 Ministry of Oil and Gas KC Development Programs .................................................................. 117 KMG (National Oil Company) Local Content Development Efforts ......................................... 117 4.3.3 Legislative Channels ................................................................................................................. 119 4.3.4 Institutional Responsibility for Policy Design and Monitoring of Implementation ........ 119 4.3.5 Interlinks .................................................................................................................................... 120 4.3.6 Monitoring and Measuring Tools ........................................................................................... 120 Local Content in the Labor Force ........................................................................................................ 121 Local Content in the Procurement of Goods, Works, and Services ................................................ 121 4.3.7 Policy Impact on Local Content Levels .................................................................................. 122 5.
Malaysia .................................................................................................................................................. 131 5.1 Structural Context ............................................................................................................................. 131 5.1.1 Economy ..................................................................................................................................... 132 5.1.2 Taxation ...................................................................................................................................... 133 5.1.3 Population and Labor Force .................................................................................................... 134 5.1.4 Education ................................................................................................................................... 136 5.1.5 Business Environment .............................................................................................................. 137 5.2 The Petroleum Sector ........................................................................................................................ 139 5.2.1 The Petroleum Sector in the Economy ................................................................................... 139 5.2.2 Petroleum Geography .............................................................................................................. 140 5.2.3 Reserves, Production, and Consumption .............................................................................. 140 5.2.4 Sector Institutional Framework ............................................................................................... 142 5.2.5 Market Structure and Local Capabilities ............................................................................... 142 5.2.6 Management of Petroleum Wealth ......................................................................................... 144 5.3 Local Content Policies ...................................................................................................................... 144 5.3.1 Policy Objectives ....................................................................................................................... 144 5.3.2 Policy Tools ................................................................................................................................ 145 Building Local Capabilities in the Petroleum Sector ........................................................................ 145 Domestic Sourcing of Goods and Services ........................................................................................ 147 Incentives for the Manufacturing Sector ............................................................................................ 147 Developing a Domestic OFSE Industry ............................................................................................. 148 5.3.3 Policy Channels ......................................................................................................................... 150 5.3.4 Institutional Responsibilities ................................................................................................... 150 5.3.5 Interlinks .................................................................................................................................... 150 5.3.6 Monitoring and Measuring Tools ........................................................................................... 152 5.3.7 Policy Impact on Local Content Levels .................................................................................. 152
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