DOI: 10.36347/sjebm.2019.v06i03.002

Pages: 180-187

The depressed oil prices supply from supply demand imbalances have resulted in the major oil companies reducing their operational and capital expenditure budgets. This threatens the business survival of Malaysian O&G SMEs who depend on the major oil companies for exploration, development and production activities. This paper presents the findings of doctoral research on the impact of the oil price shocks on the Malaysian O&G SMEs with recommend for them to become more resilient and competitive in the challenging operation environment. Methodology: A mixed methodology was used to offset the strengths and weaknesses associated with quantitative and qualitative methodologies. However, the qualitative phrase was dominant to obtain a deeper understanding of the issues from officials in the O&G SMEs. The data collection instruments were a comprehensive literature review, personal interviews, focus group and a web survey. Content analysis and descriptive statistics were the data analysis technique. Results: The findings revealed that several Malaysian O&G SMEs were unable to survive the difficult business situation, and some had exited from the industry. Appropriate new strategies and business models are required to overcome the challenges of competitive pressures, revenue loses and cost curtailment. Conclusion/- and Recommendations: It is recommended that Malaysian O&G SMEs move away from the comfort zones and venture into new markets. They should also embrace IR 4.0 and use new technologies for innovation, and increased productivity to better position themselves for entering international markets.