Malaysia set to lead regional energy transition and renewable energy industry - MIDA | Malaysian Investment Development Authority
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Malaysia set to lead regional energy transition and renewable energy industry

Malaysia set to lead regional energy transition and renewable energy industry

05 Oct 2023

Malaysia is poised to become a regional leader in the energy transition and renewable energy industry as a result of the introduction of the Hydrogen Economy and Technology Roadmap (HETR) and the implementation of the National Energy Transition Roadmap (NETR).

Prime Minister Datuk Seri Anwar Ibrahim said HETR could potentially generate up to RM12.1 billion in revenue and contribute between RM49 billion and RM61 billion to the country’s gross domestic product (GDP) by 2030.

Anwar, who is also the Finance Minister, said the implementation of HETR was also expected to generate over 45,000 job opportunities over the same period.

“The implementation of NETR with its six energy transition levers and five enablers, is expected to uplift Malaysia’s GDP value from RM25 billion in 2023 to RM220 billion and generate 310,000 jobs in 2050.

“While the successful implementation of the HETR is expected to allow Malaysia to enter into the global green hydrogen market, which is projected to be worth at least US$189.19 billion (RM824 billion) by 2050,” he said.

The text of Anwar’s speech was read by Deputy Prime Minister Datuk Seri Fadillah Yusof, who appeared on his behalf, at the opening ceremony of the International Greentech and Eco Products Exhibition and Conference Malaysia 2023 (ICEM 2023) here, today.

Present were Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad and Science, Technology and Innovation Minister Chang Lih Kang.

Malaysia, said Anwar, would take on a more decisive and leadership role in climate action and all socio economic matters in line with the Madani principles as espoused by the unity government.

“On that note, I am pleased and proud to share that Malaysia has been recognised as the best country in Southeast Asia in the Energy Transition Index 2023 by the World Economic Forum.

“This demonstrates that Malaysia is taking the right track to drive a strategic shift and economic restructuring into new growth areas,” he said.

Anwar, however, noted that financing is the “real challenge” in the country’s race and target to achieve net zero carbon emission by the year 2050.

“It is estimated that an investment of at least RM1.2 trillion between 2023 and 2050 is needed to enable a responsible energy transition.

“Nevertheless, I am pleased to note that the government is committed to a more ambitious RE power installed capacity target of 70 per cent in 2050, one of the most ambitious in the region.

“I believe that this positive and progressive intent shall position Malaysia as a favourable destination for clean and green investment, and thus sustaining or even creating new economics and job opportunities for the country,” he said.

Later, Chang told reporters that the hydrogen economy would not only help Malaysia to achieve its net zero carbon target but also have great potential to boost the country’s economic growth.

“We have to start from now since the spillover from the hydrogen economy will greatly impact the country. The launching of HETR is the unity government’s agenda to boost green technology and the low-carbon economy in Malaysia,” he said.

Asked if the government was eyeing certain businesses following the implementation of HETR, Chang replied: “We are open to collaborating with any industry players, irrespective if they are local or international organisations, in terms of hydrogen production.

“We are also looking at either local technology or international partners in terms of green technology transfers,” he said.

Chang added the government was targeting 15 per cent and 38 per cent of all kinds of electric vehicles (EVs) out of the total industry volume (TIV) by 2030 and 2040 respectively.

“This includes fuel cell EV, which means hydrogen (vehicles).

This is part of the efforts to achieve zero carbon emission by 2050.

“In addition, we are also looking at private financing in terms of building to develop the entire ecosystem (in the efforts to achieve zero carbon emission),” he said.

Source: NST