- Malaysia to attract RM637B in green energy investments by 2050.
- Energy transition sector to generate 310,000 direct local jobs.
- Focus on solar, waste-to-energy, and tax breaks to boost FDI.
According to estimates presented by the Ministry of Energy Transition and Water Transformation (PETRA) in Parliament on Thursday, Malaysia is set to draw in as much as RM637 billion in direct investments in renewable energy and green technology by 2050.
Deputy Prime Minister II and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof stated that the ministry expects the sector to create around 310,000 direct jobs in the upcoming 25 years.
In its written reply to an inquiry from Rompin MP, Datuk Abdul Khalib Abdullah, the ministry detailed an extensive array of policy instruments and regulatory changes designed to establish Malaysia as a favored location for sustainable investment.
“To attract foreign direct investment (FDI), the government is committed to strengthening current renewable energy (RE) programmes and introducing wider electricity supply options to make Malaysia a competitive destination for green investment,” the ministry stated.
These efforts consist of broadening the Large-Scale Solar Programme as the nation’s leading solar power initiative, maintaining feed-in tariff systems, and improving the Low Carbon Energy Generation Programme to promote investment in renewable sources aside from solar.
The government is optimizing the Corporate Renewable Energy Supply Scheme (CRESS), enabling companies to acquire electricity straight from renewable sources—advancing their environmental, social, and governance (ESG) objectives. Simultaneously, financial incentives like the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) will persist in supporting capital influx into green sectors.
The ministry emphasized that the transfer of skills and the creation of jobs for Malaysians are crucial to its strategy. All renewable energy initiatives approved by the government must have at least 51 per cent local equity ownership. This requirement applies to a number of important programs such as the Large-Scale Solar program, CRESS, the Feed-in Tariff program and the Community Renewable Energy Aggregation Mechanism(CREAM).
“This approach will facilitate the transfer of skills and specialised technologies in the renewable energy sector to the local workforce,” Fadillah said.
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Strategic areas have included engineering, procurement, construction, and commissioning (EPCC), thereby providing opportunities to gain project management, design, legal, and technical roles at higher levels. Local content is forecasted to be significant for the manufacture and installation of renewable components such as solar panels, boilers, energy storage systems, and electric vehicle charging infrastructure.
Additionally, the ministry has committed to developing local capacity in design and operation of new-age circular economy technologies including Carbon Capture Utilization and Storage (CCUS), recovery of wastes, and Waste to Energy (WtE).
“These initiatives are expected to ensure that Malaysians not only benefit from job opportunities but also gain critical knowledge and experience to support the country’s transition to a low-carbon economy,” he added.