Dr Yeah, who is chief economist with Rating Agency Consultancy Services, said that Prime Minister Mahathir's plan for a consortium to develop the regional oil sector is a far better option than the creation of a second national oil corp.

In an interview with Business Times, Dr Yeah said, "Companies would need a huge capital investment to compete in the international oil industry [and] with Petronas already moving internationally, this [has] left plenty of room for small oil companies to fill in the gap left by Petronas to explore the growing regional oil sector."

Furthermore, this consortium, according to Dr Yeah, will generate opportunities by exploring niche areas/markets in SEA, generate competition that will improve upon efficiency in the industry, and benefit supporting oil companies who now have more choice when providing services.

However, the good doctor warns against allowing the proposed company to take part in the oil retail business.

"We would not want this to lead to duplication of works and waste of manpower. The oil retail sector in the country is already crowded," said Dr Yeah.