Malaysia to allocate 430 million USD for energy transition

August 31, 2023 | 16:46

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Malaysia will allocate 2 billion ringgit (430 million USD) to a National Energy Transition Facility to enable catalytic blended finance, Prime Minister Anwar Ibrahim announced on August 29.

Malaysia to allocate 430 million USD for energy transition | World | Vietnam+ (VietnamPlus)

Malaysian Prime Minister Anwar Ibrahim (Source: voi.id)

Kuala Lumpur - Malaysia will allocate 2 billion ringgit (430 million USD) to a National Energy Transition Facility to enable catalytic blended finance, Prime Minister Anwar Ibrahim announced on August 29.

Speaking at an event to launch the second phase of the National Energy Transition Roadmap, Anwar said the facility will enable catalytic blended finance to ensure a seamless flow of financial resources towards energy transition projects that are marginally bankable or yielding below-market returns.

Considering Malaysia's current state of immature decarbonisation technologies, the country's progress will significantly depend on alternative energy sources and robust regional and international collaboration, he stated.

As the paramount challenge in energy transition is financing, it is estimated that an investment of at least 1.2 trillion ringgit between 2023 and 2050 is needed to enable responsible energy transition, Anwar said.

He added that 60 billion-90 billion ringgit is needed to be allocated for crucial projects, including the expansion of public transportation, strengthening grid infrastructure, and reskilling of human capital, in this decade alone.

The government will launch a major retrofit programme to enhance energy efficiency in government buildings, he added.

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US companies have made investment pledges totaling 100 billion USD in various sectors in Malaysia over the last 18 months, US Ambassador to Malaysia Brian McFeeters said on August 21.

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Malaysia is expected to receive more investments going forward, supported by investors’ confidence in the Madani Economy framework and from offshoots from existing investments, said Malaysia Semiconductor Industry Association (MSIA).

By VNA

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