Green technology investments up 22 pct to RM1.3 bln in 1H 2023: MIDA
09 Oct 2023
Green technology investments were recorded at RM1.3 billion (US$268 million) between January and June this year, representing a 21.9 per cent year-on-year growth, the Malaysian Investment Development Authority (Mida) said.
Deputy chief executive officer (investment development) Lim Bee Vian told Bernama in an interview recently that this encompasses various green technology initiatives, including renewable energy (RE), energy conservation, waste management, green buildings and services.
Notably, 348 green technology projects and services including RE were approved up to June 2023. This aligns with the objectives of the National Energy Transition Roadmap (NETR).
Malaysia has experienced significant growth with an average annual increase of 35-40 per cent in green projects covering RE, energy efficiency, green buildings and integrated waste management since 2018, Lim said.
“From 2018 to June 2023, Mida approved 3,247 green projects worth over RM17.7 billion, reflecting Malaysia’s promising outlook in green technologies.
“Mida is diligently prioritising green initiatives, with a specific focus on renewable energy projects that adhere strictly to ESG criteria and standards. The remarkable annual growth rate of 35-40 per cent in green projects can be attributed to the favourable government incentives in place.
“We give precedence to our local companies as we understand that although we are moving away from providing incentives and grants, they remain essential,” she said.
She added that Mida manages government incentive packages effectively, which explains the numerous applications received.
“We are pleased to be deeply involved in this work because we recognise that we are assisting the industry in its transition to a greener future,” she added.
Lim drew attention to the progress made in the adoption of electric vehicles (EVs) and hybrids between January and July with the total number reaching 16,257 units on the road, including passenger and commercial vehicles.
Furthermore, she said there were 319 electric motorcycles and 22 electric buses in operation, as well as 1,246 charging stations set up to support the growing EV demand.
“The increasing presence of EVs on Malaysian roads can be attributed to the introduction of a wider range of EV models into the market. Although we have made strides in enhancing the charging infrastructure, there is still work to be done in this area.
“Moreover, the growing awareness and preference for eco-friendly options are driving this trend towards green mobility. The arrival of Tesla, in particular, has significantly raised the visibility of sustainable transportation solutions in the country,” she said.
Lim said the Low Carbon Mobility Blueprint (LCMB) and the National Automotive Policy (NAP) underscore Malaysia’s commitment to sustainable transportation; the initiatives aim to increase EV market share, expand the charging infrastructure network, promote local manufacturing of EV components, and foster research and development in EV technology.
“Malaysia has secured RM22 billion in approved investments for the EV sector through 54 projects from 2018 to 2022 with an additional RM4.2 billion through five projects approved in 1H 2023,” she noted.
Its transition to a low-carbon economy is paramount in order to align with global sustainable development efforts and to harness potential emerging opportunities in the green economy.
Mida is hopeful that the government will undertake additional initiatives to strengthen and further support RE energy in the upcoming Budget 2024.
As the government’s principal investment promotion and development agency, Mida has a pivotal role to support Malaysia’s commitment to reach net-zero emissions by 2050.
“Many companies have already embarked on the sustainability journey; they know that not doing so would risk them losing relevance and market share. We will continue to support industries and enterprises in their transition efforts,” Lim said.
She reiterated that the international tide is undeniably moving in the direction of green and ESG investments and embracing these principles is not a choice but a strategic imperative.
“Failing to do so could mean missing out on the immense potential that this global shift offers. This is the golden opportunity for the private sector and we strongly encourage businesses to leverage the government’s comprehensive initiatives and support.
“Together, we hold the power to steer the wheels towards a more sustainable and prosperous future,” Lim said.
Mida focuses on promoting investments in potential green areas, including green products, electric vehicles, green energy, waste management, waste-to-energy (WTE), green building, and green certification.