As one of Malaysia’s main commodities, the natural gas industry has a significant impact on the economy through various channels. The analysis in this paper provides background research for a project titled the Malaysia-Social Economic Impact Study (M-SEIS) sponsored by the Malaysian Gas Association (MGA) undertaken by IDEAS from October 2019 to February 2020.

The natural gas industry is a major contributor to the public finances, providing over a major source of government revenue. This is set to continue as we estimate that natural gas will contribute nearly RM400 billion to the public finances over the next decade.