Green projects worth RM4.9bil approved, will create 1,500 jobs – Tengku Zafrul
02 Mar 2023
Green technology projects worth RM4.9 billion have been approved by the Malaysian Investment Development Authority (MIDA) from January 2021 to September last year.
International Trade and Industry Minister Senator Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the investments, mostly in renewable energy (RE) and energy-efficiency projects, were expected to see 1,500 new jobs created.
He said the ministry, through MIDA, was proactively encouraging investments which emphasised sustainable development based on environment, social and governance (ESG) in line with the New Investment Policy launched on Oct 6, last year.
He said the ministry, in collaboration with other agencies under its jurisdiction, was drawing up the i-ESG framework for the manufacturing sector, expected to be completed next year.
“(The framework is a measure) to encourage the sector to adapt ESG with four main components, namely, standards, financing and incentives; capacity building and marketing mechanism, including carbon trade and carbon pricing,” he said in parliamentary written reply to a question from Datuk Indera Mohd Shahar Abdullah (BN-Pay Besar).
Tengku Zafrul said among the initiatives and grants to encourage investors to explore projects that support sustainable development and adopt the ESG principles were Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE).
The tax reliefs, he said, would encourage companies to undertake green technology projects such as RE, including solar and mini hydro with energy-efficient equipment and solar panel rental service.
He said other measures under the Investment Incentives Act included encouraging investments in circular economy or recycling, use of palm oil biomass for added value and production of biodegradable household items, as well as incentives for automotive sector to produce parts for energy efficient vehicles (EEVs) and electric vehicles (EVs).
He said sustainability was a core policy under Malaysia Madani, a main theme under the 12th Malaysia Plan.
“The five-year development plan for 2021 to 2025 with the objective ‘Malaysia Makmur, Inklusif dan Mampan’ (Prosperous, Inclusive and Sustainable Malaysia) to reduce Greenhouse Gas (GHG) emission intensity based on Gross Domestic Product by 45 per cent in 2030, is in line with the government’s aspiration to achieve net zero GHG by 2050.”