Liquids supply from Malaysia, the third largest oil producer in the South East Asia region, is forecast to average 0.72 million b/d in 2016. The start-up of Gumusut/Kakap (SB J) and Kikeh (SB K) in deepwater Sabah have boosted production since 2014. But output from these projects has been disappointing and the majority of Malaysia's onstream fields are mature. Overall supply is expected to decline from 2017 onwards. Successful implementation of EOR and the development of sub-commercial reserves will be needed to stem decline, but this is heavily reliant on oil price recovery.