UEM Group’s RM7bil green industries venture - MIDA | Malaysian Investment Development Authority
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UEM Group’s RM7bil green industries venture

UEM Group’s RM7bil green industries venture

04 Jul 2023

UEM Group Bhd, a wholly-owned subsidiary of Khazanah Nasional Bhd, has unveiled its diversification into “green industries” with an initial investment of RM7bil.

UEM Group is already in talks with several foreign investors to invest in the local renewable energy (RE) scene. Details about potential collaborations will be announced within the next six months.

Apart from RE and storage infrastructure such as solar farms, mini hydro plants and biogas, UEM Group is also looking at venturing into green or electric mobility, including electric vehicle charging infrastructure maintenance and services.

The company also plans to undertake projects in the area of integrated energy solutions such as distributed energy generation technologies and energy efficiency-related services, as well as waste management and recycling.

UEM Group’s foray into green industries, underpinned by its five-year plan (2023 to 2027), will be led by its newly established unit, UEM Lestra Bhd.

The investments to be undertaken by UEM Lestra will be financed by tapping into the Islamic sukuk market, particularly via a RM7bil sustainable and responsible investment sukuk programme.

Moving forward, UEM Group aims to organically grow the green assets, explore potential mergers and acquisitions, nurture local and capable green players as well as form strategic partnerships including joint ventures.

It also plans to strengthen the domestic economic ecosystem and build a competitive green business with a direct and active ownership approach, and ultimately achieve commercial returns.

In a statement yesterday, the company said it had identified several capable local and international green energy players with commendable track record and presence across Malaysia that are seeking the involvement of a strategic investor to expand their operations.

According to UEM Group managing director Datuk Mohd Izani Ghani, UEM Group will continue to play its role as “Malaysia’s nation building partner”, but with greater focus on tackling climate change by supporting and developing the country’s green industries.

“We intend to lead the country’s decarbonisation agenda and this includes supporting the government’s efforts to transition towards sustainable energy solutions and to be a carbon-neutral nation, achieving a 70% RE capacity in the country’s electricity supply by 2050.

“We will also be working towards enhancing the domestic green capabilities over the long term and increasing the country’s competitiveness by upskilling and developing local workforce talent.

“Our aim is twofold – to create more jobs and offer high-quality employment opportunities,” said Mohd Izani.

Established in 1966 and responsible for many of Malaysia’s key infrastructure projects, UEM Group’s other core businesses for which it owns majority stakes include expressways (PLUS Malaysia Bhd); township and property development (UEM Sunrise Bhd); engineering and construction (UEM Builders Bhd and Cement Industries of Malaysia Bhd) as well as asset and facility management (UEM Edgenta Bhd).

Source: The Star