Malaysia Announces Initial Funding For Energy Transition Of IDR 6.56 Trillion

Malaysian Prime Minister Anwar Ibrahim/PHOTO via Instagram @anwaribrahim_my

JAKARTA - Malaysian Prime Minister Anwar Ibrahim announced an initial funding of 2 billion ringgit (RM) or around Rp. 6.56 trillion to facilitate energy transition efforts in the country.

Anwar in the second phase launch of the National Energy Transition Roadmap (NETR) said Malaysia, under the Paris Agreement, set a target of achieving net zero emissions by 2050.

Reported by ANTARA, Tuesday, August 29, Malaysia is currently developing joint decarbonization technology. Progress in finding alternative clean energy sources will be significant by conducting strong collaborations at the regional and international levels," said Anwar.

In this case, the Malaysian Government will allocate RM2 billion as initial funding to facilitate energy transition efforts.

The facility, according to him, will be a mixed financing catalyst that can guarantee the smooth availability of financial resources to run a bankable or below the market recovery rate.

Anwar said the most important challenge in carrying out the energy transition is financial needs with an estimated up to 1.5 trillion Malaysian ringgit (RM) or around Rp. 4,918.88 trillion during the 2023-2050 period.

According to Anwar, for this decade alone, Malaysia needs between RM60 billion to Rp90 billion (around Rp196.75 trillion to Rp295.13 trillion) to be allocated to crucial projects such as public transportation, strengthening green infrastructure and increasing human resources (HR).

The Energy Transition Council, he continued, will be activated to ensure holistic planning and development can be carried out while monitoring NETR's progress.

He believes that the implementation of the roadmap will be able to create jobs and boost domestic and foreign investment participation, while ensuring the availability and affordability of clean energy is maintained. In addition, it can make Malaysia lead the development of renewable energy in regional areas.

"The strategic position of Malaysia, which is the energy center of ASEAN, allows the country to take a clear role in advancing the future of regional energy towards ASEAN's net zero emissions," said Anwar.

The National Power Company Berhad (TNB) and Sarawak Energy Sdn Bhd, according to Anwar, are in the process of conducting cross-border businesses to expand the ASEAN electricity network. He believes that the prospect of cross-border energy will be sunny and can increase economic integration with neighboring countries.