Clean Growth

Clean Growth
Handbook
Handbook
Malaysia

Malaysia
Clean Growth
Handbook
Malaysia
Contents
Foreword 2 6.5.4 Private electric vehicles 115
6.5.5 Biofuels 120
Acknowledgements 5 6.5.6 Logistics 124
6.6 Summary of transport sector collaboration 129
Executive Summary 6
opportunities
Section 1 6.7 Market entry considerations for UK companies 130
Introduction to the Handbook
Section 7
1. 1 What is clean growth? 9 Sector: Buildings
1.2 Global drivers for clean growth 11 7.1 Buildings sector highlights and ecosystem 132
1.3 Drivers for clean growth in Malaysia 13 7.2 Buildings sector clean growth policy and plans 133
1.4 Clean growth, green growth and their differences 16 7.3 Buildings sector governance 134
1.5 Priority sectors for clean growth in Malaysia 17 7.4 Trends shaping the buildings sector 135
1.6 Collaborating with the UK on clean growth 20 7.5 Subsector market overviews 137
1.7 Key features of the Handbook 21 7.5.1 Zero energy buildings 138
1.8 Who is this Handbook for? 22 7.5.2 District cooling 143
Section 2 7.5.3 Low carbon construction 147
7.6 Summary of buildings sector collaboration 151
The global clean growth context
opportunities
2.1 Global trends in clean growth adoption 24 7.7 Market entry considerations for UK companies 152
2.2 Multilateral collaboration 26
2.3 Collaboration across Southeast Asia 28 Section 8
2.4 The stakeholder ecosystem 31 Sector: Manufacturing
2.5 Key enablers of clean growth 32 8.1 Manufacturing sector highlights and ecosystem 154
Section 3 8.2 Manufacturing sector clean growth policies 155
and plans
Clean growth in Malaysia
8.3 Manufacturing sector governance 156
3.1 Malaysia’s clean growth policy highlights 35 8.4 Trends shaping the manufacturing sector 157
3.2 National economic and sustainability aspirations 36 8.5 Subsector market overviews 160
3.3 Upcoming national plans 40 8.5.1 Energy efficiency 161
3.4 State, regional and city low carbon plans 41 8.5.2 Renewable energy and transition fuels 165
3.5 A snapshot of the clean growth market in Malaysia 44 8.5.3 Resource efficiency and circular economy 169
3.6 The clean growth ecosystem in Malaysia 47 8.5.4 Carbon capture, usage and storage 176
8.6 Summary of manufacturing sector collaboration 181
Section 4
opportunities
Clean growth in the UK 8.7 Market entry considerations for UK companies 183
4.1 The UK’s clean growth journey 49
4.2 The clean growth ecosystem in the UK 59 Section 9
Clean growth enablers in Malaysia and the UK
Section 5
9.1 Overview of enablers in Malaysia 186
Sector: Power 9.2 Deep dives into enablers in Malaysia 187
5.1 Power sector highlights and ecosystem 61 9.2.1 Governance 188
5.2 Power sector policy and plans 62 9.2.2 Policy and regulation 189
5.3 Energy sector governance 64 9.2.3 Standards 190
5.4 Trends shaping the power sector 66 9.2.4 Data and infrastructure 193
5.5 Subsector market overviews 69 9.2.5 Market incentives 196
5.5.1 Solar photovoltaics 70 9.2.6 Technology and innovation 197
5.5.2 Bioenergy 75 9.2.7 Funding and financing 200
5.5.3 Hydropower 79 9.2.8 Capabilities 203
5.5.4 Hydrogen 82 9.2.9 Collaborations 206
5.5.5 Nuclear 85 9.3 Overview of enablers in the UK 209
5.5.6 Grid integration of renewables 88
5.6 Summary of energy sector collaboration 92 Section 10
opportunities Key takeaways, next steps and conclusion
5.7 Market entry considerations for UK companies 94 10.1 Summary of key collaboration opportunities 211
by sector
Section 6 10.2 Doing business in Malaysia as a UK company 214
Sector: Transport 10.3 Conclusion 216
6.1 Transport sector highlights and ecosystem 96
6.2 Transport policies and plans 97 Appendix
6.3 Transport governance 98 UK clean growth company directory 217
6.4 Trends shaping the transport sector 99 Selected clean growth related tax incentives from 223
6.5 Subsector market overviews 101 Malaysia's Revised Budget 2023
6.5.1 Rail 102
6.5.2 Buses 106 Abbreviations 225
6.5.3 Active transport 111
References 229

Clean Growth Handbook Malaysia 1

 Foreword

The world is facing unprecedented challenges such as climate change, resource

depletion and environmental degradation. As the world grapples with these
challenges, the need for clean growth has become increasingly urgent.

The economic costs of climate change continue to rise. It is estimated that the costs
of inaction could reach USD7.9 trillion per year by 2050. This underscores the urgent
need for clean growth solutions that can help mitigate the impacts of climate
change and reduce its economic costs. Globally, the clean growth opportunity is
huge, especially across key sectors that can influence large scale change such as
power, transport, manufacturing and buildings, due to their high carbon footprint
and contribution to the economy.

According to the International Energy Agency, the clean energy transition can
contribute over 90% of the emissions reductions needed to meet global climate
goals. In the UK renewable energy accounted for almost half of the country's
His Excellency Charles Hay MVO, electricity generation at 41.4% in 2022. The UK transport sector is also making
British High Commissioner to significant progress, with targets to phase out the sale of new petrol and diesel cars
Malaysia by 2030, and to achieve net zero emissions from road transport by 2050.

Addressing climate change and achieving clean growth requires global cooperation
and coordination among governments, businesses, and civil society. When the UK
became the President designate of COP26, less than 30% of the world economy
was covered by net zero or carbon neutrality commitments. That percentage has
now risen to over 90. The Glasgow Climate Pact, adopted at COP26, keeps alive the
possibility of limiting global warming to 1.5ºC, but its commitments on mitigation,
adaptation and finance need to be collectively acted upon by all the countries of
the world.

The UK has been at the forefront of clean growth. The government has introduced
key progressive policies, including a commitment to reach net zero greenhouse gas
emissions by 2050, guided by the 2008 Climate Change Act, and we were among
the first countries to recognise and address the economic and security risks of
climate change. Since 1990, we have managed to reduce emissions by 48%, while
growing our economy by 65%.

In the course of decarbonising our economy, the UK has built world leading
expertise in offshore wind power, zero carbon powertrain, electronics for zero
emission vehicles and electric motors, sustainable buildings and global leadership in
green finance. Our ‘Powering Up Britain’ strategy sets out how the energy transition
in line with net zero and improving energy security is one of the greatest economic
opportunities for the UK. Our world class universities are engaged in research and
innovation of new low carbon technologies, and in offering new and exciting
courses across the sustainability spectrum. We have also developed relevant
expertise in green finance, and in related legal and other professional services. In
our journey towards achieving net zero, we continue to work with partners around
the world to forge and promote partnership across policy, science and innovation,
in skills and in trade and investment. We are keen to share our experiences with, and
to learn from, other countries.

During my four years in Malaysia, the UK has been able to support Malaysia’s
climate ambition objectives and just transition, through delivery of a wide range of
projects cutting across energy, transport, nature, green finance and many other
thematic areas. Our 2022 bilateral Climate Partnership MOU demonstrates our
commitment to continue to work closely with Malaysia to address environmental
challenges, through policy, trade and diplomacy.

2 Clean Growth Handbook Malaysia

 We have worked on trade and investment successes in each other’s economies, like
Tenaga Nasional Berhad’s investments in renewables in the UK. Commercial
collaborations have emerged, in exciting new sectors such as Carbon Capture,
Usage and Storage (CCUS): Storegga and Shell have both signed agreements with
Petronas, as Malaysia determines the commercial, regulatory, and economic
factors required to develop a CCUS hub and cluster projects. Other early successes
have been in Battery Energy Storage Systems (BESS), carbon reporting standards as
well as multi modal journey planner to help improve urban mobility. All of which are
highlighted in this Handbook.

UK’s accession to the Comprehensive and Progressive Agreement for Trans Pacific
Partnership (CPTPP) is a strong testament to our commitment to clean growth and
environmental aims by promoting clean imports and exports and encouraging
foreign direct investment into the low carbon economy (across a range of sectors
from automotive to energy). This historic agreement will improve facilitation of
international cooperation on global environmental issues, to accelerate the global
transition to a low carbon economy and to reaching net zero.

It is therefore my pleasure to introduce this UK Malaysia Clean Growth Handbook,

in partnership with The Honourable Tuan Rafizi Ramli at the Ministry of Economy.

This is intended to serve as a practical guide, to support Malaysia unlock the

opportunities of clean growth and transition towards a sustainable, low carbon
economy. It is clear that actions to cut emissions are win win: driving economic
growth, creating high value jobs, increasing resource efficiency, cutting consumer
bills and helping to improve quality of life.

By working together across borders, and embracing innovative solutions, we can

create a brighter, more prosperous future for our people and planet.

I hope that this Handbook will inspire and empower businesses, policymakers, and
citizens alike to take bold action towards a cleaner, greener Malaysia.

Clean Growth Handbook Malaysia 3

 Foreword

Governments around the world must grapple with two irrefutable facts: One, the
science on climate change is clear and the urgency to act is now. Two,
environmental sustainability is no longer a social good, but an economic imperative
for all.

This is especially true for a developing country like Malaysia where we stand to lose
out on productivity, income, outputs, and health if we do not act in a concerted
manner to contain and reverse the effects of climate change.

Between 1990 and 2019, Malaysia’s GDP increased by 389% while the greenhouse
gas (GHG) emissions also rose by 289%. Clean growth means a decoupling of
economic growth and carbon emissions—and this requires setting an ambitious and
unconditional target, and pairing it with an enabling ecosystem and investment in
technology.

YB Mohd Rafizi Bin Ramli, The United Kingdom is a shining example of this as it successfully reduced its
Minister of Economy, Malaysia emissions by 48% since 1990, while growing the economy by two-thirds.

Malaysia’s aspiration is to be a net zero country by 2050, the same year the
Malaysian economy is expected to triple in size. Malaysia has also unconditionally
pledged to reduce our carbon intensity by 45% by 2030. To realise this, Malaysia
has rolled out the National Energy Policy 2022-2040 that intends to fundamentally
transform our primary energy supply to move away from coal to cleaner sources,
while managing an optimal trade-off of the energy trilemma of security,
affordability, and sustainability.

To this end, technology acts as a fundamental enabler in driving clean growth, as it

could create high-value, high-skilled, high-paying jobs and industries that could
restructure Malaysia’s economy. For instance, technology could reduce energy
fluctuations for grid stability; convert plastic to circular feedstock and alternative
energy source; and use real-time, personalised traffic data to reduce inefficient use
of transport.

Cross-border collaboration like those between Malaysia and the United Kingdom
(UK) is essential for knowledge sharing and technology transfer as the positive
outcome of a cleaner environment is common to all humanity. The UK's niche
expertise in clean technologies such as wind, tidal, and carbon capture and storage
may be helpful to Malaysia. History is filled with examples of how advances in key
technology, like in solar energy, was a combined effort of different governments
that had the foresight to invest early and big into strategic initiatives.

The UK-Malaysia Clean Growth Handbook comes at a timely moment in history as

Malaysia put in place a multi-sector approach to scale up clean growth with new
ideas and strategies ready for private sector uptake. In particular, the Handbook
elaborates the strategic nature of four industries, namely power generation,
transport, manufacturing, and buildings, which have high current GHG levels and
environmental returns. These specified areas are also potential collaboration areas
between Malaysia and the UK that could further deepen ties between the countries.

Above all, acting fast on climate actions is an important responsibility we owe to the
next generation so that we leave behind a planet that is better than what we found.

4 Clean Growth Handbook Malaysia

Acknowledgements
This project was commissioned by the UK’s Foreign, The Clean Growth Handbook Malaysia would not have been
Commonwealth and Development Office and Department possible without contributions from Malaysian and UK
for Business and Trade, with support from Arup as the stakeholders. This includes national and local government,
delivery partner. private organisations, industry associations, academia and
non-governmental organisations.

Thank you to the Malaysia-based stakeholders engaged

during the project, which include, but is not limited to:

• Public sector: Ministry of Economy; Ministry of

Transport; Ministry of Natural Resources, Environment
and Climate Change; Malaysian Green Technology and
Climate Change Corporation; Malaysian Investment
Development Authority

The Foreign, Commonwealth and Development Office • Private sector: TNB Renewables; Gentari; Beam Mobility;
(FCDO) leads the UK Government’s diplomatic, development Sarawak Energy; Press Metal; Frosco Frosgold; Green
and consular work around the world. It also delivers the UK’s Lagoon Technology; Ion Ventures; Formasi Energy;
objective to be a responsible, reliable and effective Ricardo; Turner & Townsend; Mega Fortris; Pahang
international actor in tackling global challenges like poverty Cement; Vacuumschmelze (Malaysia); Top Glove; AT & S
and climate change, working in partnership with the Austria Technologie & Systemtechnik (Malaysia)
international community.
• Industry associations: Federation of Malaysian
The Department for Business and Trade (DBT) is the UK Manufacturers
department for economic growth. DBT supports businesses
to invest, grow and export, creating jobs and opportunities • Academia: Universiti Malaya Sustainability and
across the country. Development Centre; Heriot-Watt University Malaysia;
Universiti Teknologi Petronas; Jeffrey Sachs Center on
FCDO (represented by the British High Commission Kuala Sustainable Development
Lumpur) along with DBT, commissioned the Clean Growth
Handbook to support Malaysia’s climate transition, building • Non-governmental organisations: C40 Cities Climate
on the success and lessons learned from various UK climate Leadership Group; Deutsche Gesellschaft für
programme initiatives and partnerships in Malaysia, such as Internationale Zusammenarbeit'
the UK Partnering for Accelerated Climate Transitions (UK
PACT), Low Carbon Energy, Future Cities, UK-Malaysia Smart
Cities Handbook and more. Thank you to the UK-based stakeholders engaged during the
project, which include, but is not limited to:

• Public sector: Department for Transport; Department for

Business and Trade

• Private sector: Zipabout; Hanson UK; Switch

Mobility

• Academia: The Grantham Research Institute on Climate

Change and the Environment

Arup is a global collective of designers, consultants and • Non-governmental organisations: Energy Institute; World
experts dedicated to sustainable development, and to using Business Council for Sustainable Development; CDP
imagination, technology and rigour to shape a better world.
Authors of this Handbook include Devni Acharya, Faris
Faizal, Husni Hashim, Han You Hau, Sheng Lee, Ming Yang A special thank you to Esin Serin at the Grantham Research
Ng, Shakila Rajendra, Murali Ram, Johanna Woodburn and Institute on Climate Change and the Environment for peer
Azril Zainal. reviewing the Handbook.

Clean Growth Handbook Malaysia 5

 Executive Summary
The Clean Growth Handbook Malaysia (the Handbook) was As Malaysia looks to strengthen its climate commitments
commissioned by the UK’s Foreign, Commonwealth and with an impending Climate Change Act and a net zero
Development Office to highlight the clean growth carbon by 2050 target on the cards, adopting clean growth
opportunities in Malaysia as well as collaboration strategies will be critical. While addressing economic and
opportunities between Malaysian and British organisations to decarbonisation priorities, it can also help address national
advance the agenda. The Handbook looks to build on agendas set out in the Twelfth Malaysia Plan. This includes
existing collaborations between the two countries across the balancing the energy trilemma, boosting innovation and
public and private sector in sustainability. Recent examples productivity, and creating new industries and jobs.
of fruitful collaborations include the UK-Malaysia Partnering
for Accelerated Climate Transitions programme, the launch For this Handbook, four sectors have been prioritised based
of the centralised sustainability platform by Bursa Malaysia on their ability to enact large scale change i.e. sectors with
and the London Stock Exchange, and the exploration of higher greenhouse gas emissions and gross added value
carbon capture, usage and storage clusters in Malaysia by contributions to the economy. They include power, transport,
Petronas and Storegga. buildings and manufacturing.

Clean growth relates to growing national income while Within each sector, the Handbook provides market
reducing greenhouse gas emissions. While the term ‘clean overviews and growth opportunities in key subsectors. This is
growth’ may be new to Malaysia, the country’s clean growth complemented by collaboration opportunities with British
ambitions can already be seen across multiple policies, companies that have built up considerable expertise and
strategies and plans at the all levels of government. For lessons learned that Malaysian organisations can draw on.
example, the country has committed to reducing its carbon Both the growth and collaboration opportunities were
intensity against GDP by 45% by 2030 compared to 2005 informed by desktop research and stakeholder interviews
levels in its updated Nationally Determined Contribution. At with Malaysian and British organisations.
state level, Sarawak is looking to grow its green hydrogen
economy in line with ambitions set out in the National Energy Power: There has been steady efforts over the past
Policy 2022-2040. decade to increase the share of renewable energy in
Malaysia. More solar projects are set to be operational in the
The need to transition to an economic model that takes into coming years. Sarawak is capitalising on its hydropower and
account the threat of future climate risks has become more carbon storage capacity to produce green hydrogen and
imperative than ever. Swiss Re reports that climate change implement carbon capture, usage and storage projects. To
represents the largest long-term threat to the global be able to increase the share of renewables, Malaysia
economy; if net zero climate targets are not met by 2050, the recognises the need to adopt energy storage systems to
world risks losing USD23 trillion in global economic output. mitigate against the intermittent nature of renewables. As a
On the other hand, a transition to clean growth could boost renewables powerhouse, the UK’s expertise could prove
global GDP and create more than 65 million new low carbon invaluable to Malaysia.
jobs in the next 30 years.

6 Clean Growth Handbook Malaysia

 Transport: Malaysia has historically focussed on While there are many clean growth opportunities to pursue,
expanding its road network but now has targets in the right enabling environment must be provided to support
place to increase public transport mode share in urban areas uptake by the private sector. Nine enablers for clean growth
and provide low carbon logistics. Malaysia has multiple have been identified. For each enabler, the state of play in
urban and interstate rail projects under development and Malaysia is explored together with areas for further
plans to shift both public and private vehicle use to greener development.
transport options such as electric vehicles. The UK brings
experience in integrated transport planning to support the Overall, the current Malaysian government provides a good
uptake of public transport use, the development of vehicle base for scaling clean growth. The Ministry of Economy is
charging networks and innovations in multi-fuel stations to formulating socioeconomic development plans and energy
power hydrogen and electric logistics fleets. policies related to shifting away from oil and gas. In parallel,
the new Ministry of Natural Resources, Environment and
Climate Change is expected to enable more holistic
Buildings: Green building certification in Malaysia has environmental governance. The past two years have seen
been gaining traction due to increasing tenant vision statements concerning net zero aspirations, the
demands and tax incentives. The concept of zero energy publication of a new national energy policy and launch of a
buildings is on the rise as is the adoption of low carbon Voluntary Carbon Market Exchange. Ministry of Investment,
building materials as embodied carbon gains a seat at the Trade and Industry is engaging with stakeholders to develop
table with operational carbon. The UK brings experience in a national ESG framework for the manufacturing sector. On
low carbon building design standards, district energy funding, multiple forms of financing exist to support the
systems and low carbon material science that can be development of green technology in Malaysia and on
leveraged in Malaysia. capabilities, there is now better integration of low carbon
technologies into tertiary education. The challenge, now, is
scaling this enabling environment to cover all aspects of the
Manufacturing: A recent hike in electricity tariffs for economy and communicating it in a coherent manner to the
industrial users in Malaysia will likely drive private sector.
manufacturers to adopt more energy efficiency measures. In
addition, increasing international low carbon trade This Handbook seeks to spark new ideas across sectors and
requirements will require manufacturers to think differently enablers, and act as a tool to foster collaboration between
about their product life cycles. The National Energy Malaysian and British companies in pursuit of clean growth in
Efficiency Action Plan 2016-2025 has already improved the Malaysia.
energy efficiency of many manufacturing facilities across
the country. However, it falls short of renewable energy
integration at facility level and the adoption of circular
economy approaches at product level. The UK brings
experience in industrial thermal energy audits, developing
circular business models, and adopting carbon capture,
usage and storage technologies in hard to abate industries.

Clean Growth Handbook Malaysia 7

 Section 1

Introduction to the
Handbook
This section provides a definition of clean growth, its key drivers both globally and
specifically in Malaysia, and what readers should expect to gain from reading the
Handbook. The section also provides a justification for selecting four priority sectors,
which forms the basis of the content covered in this Handbook.

8 Clean Growth Handbook Malaysia

 What is clean growth?
1.1
The concept of clean growth relates to growing national
income while reducing greenhouse gas emissions. The
impact of a clean transition should also deliver a range
of social and economic benefits while decoupling emis-
sions from economic growth. It should provide access to
energy for all, affordable energy supply for businesses
and consumers, better air quality, industrial productivity
and a range of high quality jobs.1, 2
To date, the world economy has relied one million have successfully decoupled
on fossil fuels to drive growth. This first emissions from economic growth.3
became evident during the Industrial Figure 1.2 indicates these countries with
Revolution between 1760 and 1840, Denmark, the UK and Finland amongst
where the consumption of fossil fuels the top performers.
underpinned economic growth. The
combustion of fossil fuels generates Focussing on the UK, GDP per capita
greenhouse gases (GHGs), therefore, grew by 52% while production-based (or
economic growth has historically been territorial) GHG emissions per capita fell
linked to an increase in GHG emissions. by 46% between 1990 to 2019.4 This
Figure 1.1 shows the direct correlation of trajectory is shown in Figure 1.3. The
global gross domestic product (GDP) decoupling is largely a result of
with global GHG emissions between 1990 economic structural changes such as a
and 2021 based on data from the World shift toward the services sector,
Bank. technological advancements such as
the substitution of fossil fuels with
This correlation has somewhat renewable energy and the enforcement
weakened in high-income nations that of environmental regulations such as the
have moved away from manufacturing Climate Change Act that legally
to service-based economies. In addition requires the country to reach net zero
to this, many of these countries have carbon by 2050.5
also adopted climate policies that look
to reduce GHG emissions with All countries will need to follow this path
unsurmountable evidence that GHG to avoid detrimental impacts of climate
emissions causes climate change. The change at global scale. Economies will
positive news is that some of these need to significantly increase their
countries have demonstrated that investments into renewables to achieve
decoupling economic growth from GHG net zero carbon. For developing
emissions is possible. economies, it is widely acknowledged
that international funding and finance
A report published by The Breakthrough will be needed to accelerate
Institute showed that since 2005, at least decarbonisation efforts.
32 countries with a population of at least

Figure 1.1: +160%

Global changes in GHG emissions with GDP
GDP, 1990-20216 +140%

+120%

+100%

+80%
GHG
+60% Emissions

+40%
+20%

+0%
1990 1995 2000 2005 2010 2015 2021

Clean Growth Handbook Malaysia 9

 Figure 1.2:
Countries with a population of more than
one million that absolutely decoupled
territorial GHG emissions from GDP,
2005-20193

120%

100%
Percentage change since 2005

96%
89%

80%
66%

60%
49% 49%
42%
40% 36%
38%
35%
40%
35%
30% 28%
27%
24%
22%
20%
21% 18% 20% 18% 19% 20%
17% 15% 16%
13%
8% 8% 10%
5%
3% 3%
0% -1%
-3%
-9% -9% -6% -4% -4% -4% -4%
-10% -10%
-14% -14% -14%
-20% -21%
-18% -17% -17%
-24% -24% -24% -23% -23%
-26% -25%
-31% -31%
-33% -33%
-40% -37% -36%

-45%

-60%
Denmark
United Kingdom
Finland
Romania
Spain
Jamaica
Croatia
Portugal
Sweden
Ireland
France
Slovenia
Belgium
Hungary
Slovak Republic
Bulgaria
Singapore
Cyprus
United States
Germany
Austria
Netherlands
Lithuania
Japan
Latvia
El Salvador
New Zealand
Mexico
Estonia
Belarus
Norway
Poland
Territorial Emissions GDP

Figure 1.3:
The decoupling of economic growth and
GHG emissions in the UK, 1990-20196

+60%
GDP
per capita

+40%

+20%

+0%

-20%

-40%
Territorial emissions
per capita

-60%
1990 1995 2000 2005 2010 2015 2019

10 Clean Growth Handbook Malaysia

 Global drivers for clean
1.2 growth
Socioeconomic drivers. Overall, there is world’s economies, such as more
strong evidence that driving economic frequent and severe weather events,
development is compatible with there are significant societal co-benefits
responding to the threat of future that could emerge from the transition to
climate risks caused by a rise in GHG a low carbon economy. This is described
emissions. While there is clearly a in Figure 1.4.
downside in failing to decarbonise the

Figure 1.4:
Global drivers for clean growth

Economic threats from climate change impacts

Loss of GDP. Research by Swiss Re Institute has shown that climate change could wipe off up to 18%
GDP of the global economy by 2050 if temperatures rise by 3.2°C.7

Developing nations could lose out. Low and middle income nations including those in the ASEAN
region could lose up to 37% of their GDP than would otherwise be the case.8

Loss of productivity and output. If net zero climate targets are not met by 2050, the world risks
losing USD23 trillion in global economic output.7

Health and wellbeing threats. A World Bank report estimates that the cost of health damage
caused by air pollution amounts to USD8.1 trillion a year, equivalent to 6.1% of global GDP.9

Socioeconomic benefits of clean growth

Increased GDP and jobs. The transition to a low carbon economy could increase global GDP by up to
3% in the next 30 years.10

The International Renewable Energy Agency has estimated that the adoption of renewable energy
sources in ASEAN specifically could increase GDP by up to 1.3% by 2030 in the region.11 It is pertinent
that the transition is just; it must be designed to be as fair and inclusive as possible to everyone
concerned, creating decent work opportunities and leaving no one behind.12

Clean energy could create job opportunities in ASEAN. In the next 30 years, the transition to a low
carbon economy could create more than 65 million jobs.10 The International Labour Organisation
estimates that 24 million jobs worldwide could be created by the green economy by 2030.13 The
World Economic Forum reports green jobs and talent of the future have a higher overall presence in
healthcare, agriculture, transportation, construction and manufacturing sectors.13

Increase in innovation and skills. Clean growth strategies could potentially create new business
models and markets that attract foreign investment.

Industries could improve productivity through leaner processes. The European Commission estimates
that eco-design, eco-innovation, waste prevention and the reuse of raw materials can bring net
savings of up to EUR600 billion for EU businesses. Additional measures to increase resource
productivity by 30% by 2030 could boost GDP in the EU by nearly 1%, while creating 2 million more
jobs.14

Cleaner air could save lives and increase GDP. A World Bank report states that a transition to
cleaner energy and improvements in energy efficiency could result in 52,000 avoided premature
mortalities from air pollution, with a monetised value of USD240 billion. The potential effect on global
GDP is an increase of up to 1.2% above the baseline, or USD1.4 trillion with uneven effects among
countries.15

Clean Growth Handbook Malaysia 11

 Total annual benefits in 2030 of green
growth policies in six geographies across
the globe15

1 million metric
tons of increased
crop yields

8.5 Gt CO2 e
of emissions
reduced

15,800 Twh
of energy
saving

94,000
lives
saved

Note: Results for Mexico are combined with Brazil’s.

SD
50: U 10.3 tn
Global contribution of six clean growth
opportunities to GDP17 20

2020 2050
: USD1.3
(USD billions)* (USD billions)*
20
Green Finance 21 152
20

tn
Biofuels 88 326 USD USD USD USD
6.3 tn 0.8 tn 0.5 tn 4 tn
Hydrogen 3 806

Clean Energy Manufacturing 170 340

Renewable Power Generation 901 5,331

Electric Vehicles 118 3,349

*2020 prices
Direct Impact Indirect Impact

The division of economic benefits across

Southeast Asia from adopting green
growth16

Export opportunities in sectors

Up to USD1 trillion from new growth areas and business efficiencies
where Southeast Asia leads

Energy & resources New Growth Areas Efficiencies & Savings USD270 Billion

Food systems USD205 Billion

Industries & logistics USD200 Billion

Cities USD185 Billion

Healthcare, education, retail & other USD75 Billion

Financing Serves as a key enabler to realise economic opportunities in the green economy: ~$30B in new growth areas

5-6M Jobs
Created 6-8% Contribution of new growth
areas to 2030 GDP ~20 Fortune 500
companies*
*The equivalent number of highly valued companies was calculated using weighted average P/S ratio of Fortune 500
companies (~1.9); the average market capitalisation of Fortune 500 companies is about $54.3 billion
Note: The 6% to 8% contribution to GDP includes additional growth areas as a proportion of 2030 GDP

12 Clean Growth Handbook Malaysia

 Drivers for clean growth in
1.3 Malaysia
Malaysia’s ambitions. Malaysia’s Achieving the NDC target. Between
economy is expected to triple in size by 1990 and 2019, Malaysia’s GDP and GHG
2050. As the country’s population emissions increased by 389% and 289%,
increases from 33 million today to over respectively.20, 21 As per the definition of
41.5 million in the next 30 years, primary clean growth, this correlation must be
energy supply in Malaysia is set to decoupled. The current NDC target
increase by 60% over the same lends itself well to this as a 45%
period.18, 19 reduction in emissions intensity against
GDP would require a reduction in
In 2021, Malaysia committed to an emissions and increase in GDP (since the
unconditional target to reduce carbon emissions intensity is a function of
intensity against GDP by 45% by 2030 change in emissions over the change in
compared to 2005 levels in its updated GDP from 2005). However, Figure 1.5
Nationally Determined Contribution shows how Malaysia’s NDC target could
(NDC) submission to the United Nations still be met even if it doubles its absolute
Framework Convention on Climate emissions by 2030, by sufficiently
Change (UNFCCC). To support this, growing its GDP.22 This is a misnomer
Malaysia outlined its ambitions to adopt that can be addressed by focussing on
low carbon approaches to achieve clean growth that decouples emissions
sustained economic growth in the from economic development.
country’s five-year development plan
covering 2021-2025, known as the
Twelfth Malaysia Plan (12MP). Evidently,
clean growth will play a critical role as
Malaysia looks to grow its economy
while reducing its GHG emissions.

Figure 1.5:
Projected changes in GDP and GHG 600,000,000,000
World Bank 12MP
900,000,000

emissions that show how Malaysia can historical data projected data

still meet its NDC target by doubling 800,000,000

absolute GHG emissions22 500,000,000,000

700,000,000
GHG emissions (kg co2 eq/year)

400,000,000,000
-45%
lower GHG/GDP
600,000,000
GDP (USD/year)

500,000,000
300,000,000,000

400,000,000

200,000,000,000 300,000,000

200,000,000
100,000,000,000
100,000,000

2000 2005 2010 2015 2020 2025 2030 2035

Year

Malaysia GDP (USD current)

Malaysia, GHG excl, landuse Change and Forestry (kg CO2eq/year)

with fixed GHG/GDP ratio

Malaysia, Total GHG emission excl, Land-use Change and Forestry

(kg CO2eq/year)

Clean Growth Handbook Malaysia 13

 Government backing. In September Assessments are currently underway as
2021, Malaysia’s former Prime Minister part of Malaysia’s impending long-term
Ismail Sabri announced plans to become low greenhouse gas emission
a carbon neutral nation by 2050 at the development strategies (LT-LEDS) to
earliest. He said efforts to accelerate understand the feasibility of a net zero
growth of the green economy, boost carbon by 2050 target. The final
energy sustainability and transform the approved target will likely be
water sector must remain at the core of incorporated into the country’s
the country's socioeconomic upcoming Climate Change Act that is
development.23 due to be tabled in late 2023 or early
2024. If a net zero carbon by 2050 target
During elections, the current Prime were to be included in the Climate
Minister Anwar Ibrahim laid out six core Change Act, it could make the target
“MADANI” thrusts in his manifesto: legally binding, as is the case in the UK.
sustainability, care and compassion,
respect, innovation, prosperity and trust. Alignment of clean growth with the
The Prime Minister has since adopted 12MP. While the 12MP sets out low
these thrusts as his government’s carbon approaches that support clean
concept to restore Malaysia’s place in growth, the way in which clean growth
the global arena. So far, the new could support other priorities outlined in
government has remained true to it by the 12MP is less acknowledged. The
consolidating government remits related co-benefits to clean growth align well
to natural resources, environment and with Malaysia’s priorities outlined in the
climate change under a single ministry. 12MP across the country’s energy,
This suggests commitment towards employment, manufacturing,
sustainable development and that a net productivity and social priorities. This is
zero carbon target could be on the elaborated further in Table 1.1.
cards.

14 Clean Growth Handbook Malaysia

Table 1.1:
Relationship between clean growth and
12MP priorities

12MP priority Relevant benefits delivered by clean growth

Solving the energy trilemma • Avoids using the country’s depleting oil and gas resources or relying on volatile
(security, sustainability, international oil and gas markets to import energy18
affordability)
• A net zero by 2050 pathway has the potential to decrease emissions from power
generation, transport and fugitive emissions by 104 MtCO2e in Malaysia24

• The total cumulative energy system cost in a 1.5°C scenario is estimated at

USD9 billion lower annually than in the current planned energy scenario18

• The avoided health and climate change costs in a 1.5°C scenario is between
USD2 billion and USD4 billion annually compared18

Creating new industries and • The energy transition could create new high-value jobs and involve both large
developing new job markets companies and SMEs25

• The uptake of green technology can be supported by increasing sources of

sustainable finance by lenders looking to green their portfolio26

Becoming a global • Adopting a circular economy model, which has been identified as a game changer in
manufacturing hub the 12MP, builds resilience against volatile resource prices as well as provides
opportunities to move up the value chain

• Focus on clean technology manufacturing, such as solar panels and battery storage,
could create jobs in both manufacturing and installation

• Eco-industrial parks could lure multinationals and foreign direct investment27

Raising innovation and • Greening high-impact sectors such as the construction sector could boost innovation
productivity to the next level of sustainable, durable, biodegradable and recycled construction materials while
increasing product value and labour costs28

Enhancing social capital, • Increasing access to clean energy could contribute to socioeconomic empowerment
inclusivity and wellbeing in rural communities29

• Improvements to public health from the reduction of air and water pollution related to
switching from burning fossil fuels for energy production to cleaner energy sources30

Clean Growth Handbook Malaysia 15

 Clean growth, green growth
1.4 and their differences
Terminology differences. The concept boost investor confidence through
of clean growth is often used greater predictability in how
interchangeably with green growth or governments deal with environmental
sustainable growth, although this is not responsibilities.32
strictly correct. They all relate to
sustainable economic development but The UK’s Clean Growth Strategy defines
have slightly different definitions, made clean growth as growing national
more confusing by different income while cutting GHG emissions.
organisations adopting different The UK’s Net Zero Strategy, published
definitions for the same term. In after The Clean Growth Strategy, uses
Malaysia, green growth is more both clean growth and green growth as
commonly referred to as both the 11MP agendas to be adopted. The document
and 12MP make reference to it. broadly defines these concepts as
growth that is environmentally
Definitions. Green growth is defined by sustainable, driven by a zero-carbon
the United National Environment transition that increases underlying
Programme as an economy “that results strength and productivity across
in improved human wellbeing and social physical, knowledge, human, natural
equity, while significantly reducing and social capital assets – that can be
environmental risks and ecological sustained in the long run.
scarcities.”31
The relationship between the terms. In
Much like clean growth, the benefits of short, while green growth decouples
green growth include stimulating the economic growth from a range of
economy by promoting innovation and environmental and social externalities,
job creation, mitigating the effects of clean growth specifically looks at
climate change and promoting social decoupling economic growth from GHG
equity. It also seeks to reduce the risk of emissions. In fact, in Arup’s latest
negative shocks to growth due to publication on The Global Green
resource bottlenecks, as well as Economy, a third of the green growth
damaging and potentially irreversible activities identified could be classed as
environmental impacts. It also serves to clean growth activities.33

Figure 1.6:
The relationship between clean growth Lower
and green growth34 greenhouse
Clean
gas intensity
growth

Tracking
Low carbon
climate
growth
change
Climate
Economic
change
growth
resilience Green
growth

Valuing Equitable
natural capital growth

Strengthening
Enhances communities
Human
biodiversity and and habitats
development
ecosystem and poverty
services reduction

16 Clean Growth Handbook Malaysia

 Priority sectors for clean
1.5 growth in Malaysia
Malaysia priority sector selection. Power is the highest emitting sector.
Making the transition to clean growth Figure 1.7 shows that Malaysia’s GHG
requires a holistic approach across all emissions (excluding LULUCF) have been
sectors in Malaysia. While all sectors increasing between 1990 to 2019. In 2019,
emit GHGs, there is a need to prioritise electricity and heat alone accounted for
action in certain sectors over others due over 42% of total emissions as indicated
to resource and capacity constraints. in Figure 1.8. With almost half of
Malaysia’s emissions coming from
Priority sectors for Malaysia have been electricity and heat, and power
selected based on their relative generation set to increase by 60% over
contribution to GHG emissions and the the next thirty years, it is important for
economy i.e. sectors that can impact Malaysia to prioritise the power sector in
and influence large scale change. Land its clean growth journey.
use, land use change and forestry
(LULUCF) have been excluded from this Transport is the second highest
study as this requires a more detailed emitting sector. In 2019, transport
state-by-state approach since all state accounted for 21% of Malaysia’s
governments have authority over their emissions as indicated in Figure 1.8. Most
natural resources such as land and journeys in Malaysia are made by car
forests.35 Based on this, four priority with only 20% public transport mode
sectors have been selected: share.36 Malaysia’s annual population
will increase by 11% from 33 million
Power – utility scale power today to almost 37 million in 2030. 37, 38
generation, transmission and Alongside this, annual passenger car
distribution sales are expected to grow by 25%
Transport – public, private and between 2022 to 2030.39 The growth in
active transport modes car ownership would significantly
Buildings – construction and contribute to emissions in the years to
operation of different building come, hence why transport has been
typologies, covering material and selected as a priority clean growth
energy use sector.
Manufacturing – industrial
production of different materials,
components and products

Figure 1.7: 350

GHG emissions (Mtonnes)

Malaysia’s GHG emissions excluding 300

LULUCF, 1990-201940 250
200
150
100
50
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

Year

Electricity/Heat Transportation Manufacturing/Construction

Industrial Processes Waste Fugitive Emissions

Agriculture Building Other Fuel Combustion

Clean Growth Handbook Malaysia 17

 Buildings, construction and Manufacturing and construction
manufacturing are high emissions accounted for 31% of GVA in 2019.
intensity sectors. Malaysia categorises Together, manufacturing, construction
its economic activities into five sectors. and industrial processes represented
As indicated in Figure 1.9, the sector with approximately 32% of emissions in 2019.
highest contribution of Gross Value This assumes 31% of emissions from
Added (GVA) in 2019 was the services electricity and heat, and all
sector, followed by the manufacturing manufacturing and construction and
sector (including industry), mining and industrial processes emissions were
quarrying, construction and lastly, attributed to the manufacturing and
agriculture. While the services sector construction economic sector.
accounted for 55% of GVA, it is
estimated that 44% of emissions came As a result, manufacturing and
from this economic sector. This assumes construction had a higher emissions
55% of emissions from electricity and intensity (1.0) than services (0.8) in 2019
heat, and all transport emissions were and has been selected as a focus area
attributed to the services economic for clean growth in Malaysia. For the
sector in 2019. purposes of this Handbook,
manufacturing and construction has
been separated into two sectors,
manufacturing and buildings, to
distinguish between the opportunities
that each sector could adopt.

Figure 1.8:
Malaysia’s GHG emissions inventory, 201945

Energy

Electricity/Heat

Industrial Processes
5%
Agriculture
41%
Transportation 7% 81%
Waste 21%
Building
7% 1%
Fugitive Emissions

Manufacturing/Construction
1% 5%
Other Fuel Combustion 12%

Figure 1.9: Gross value added (RM billion)

Gross value added by sector, 2019 (RM
billion)45 0 200 400 600 800

Services
693.81
(55%)
319.16
Manufacturing
(25%)
129.10
Mining and quarrying
(10%)
75.32
Construction
(6%)
45.45
Agriculture
(4%)

18 Clean Growth Handbook Malaysia

 Building floor area will need to grow. The services sector as an enabler.
Malaysia is targeting an urbanisation Services is the most important economic
rate of 85% by 2040, up from 75% in sector in Malaysia. In 2019, the top three
2020. This is likely to be accompanied by subsectors by GVA in the services sector
an increase in the number of buildings were wholesale and retail trade, finance,
developed to accommodate additional and information and communication.
live, work and play capacity. This further While these subsectors are not
adds to the evidence for selecting considered high GHG emitters, they are
buildings as a priority sector. key enablers for clean growth in a
country, as described in Section 2.5.
Ambitions to become a manufacturing
powerhouse. Malaysia actively Sectors not prioritised are important
encourages manufacturing projects via too. While sectors like water, waste, land
the Malaysian Investment Development use, agriculture and forestry have not
Authority (MIDA) and this is not expected been prioritised, they are still important
to change anytime soon. The GVA of the and should be considered when
manufacturing sector is expected to developing holistic policies and
grow by 27% from 2019 to 2025.41 With strategies.
the energy-intensive manufacturing
process of certain products such as
semiconductors, steel and cement, there
is a need to prioritise the manufacturing
industry for Malaysia’s clean growth
transition.42

Clean Growth Handbook Malaysia 19

 Collaborating with the UK
1.6 on clean growth
International collaboration is a must. B2B collaborations. One example of a
The International Renewable Energy G2G collaboration is the Malaysia-UK
Agency reports that Malaysia will need Climate Partnership Agreement on
to double its investments in renewable climate and biodiversity, which is
energy to at least USD375 billion in order described further below. An example of
to achieve carbon neutrality by 2050.43 a G2B collaboration is the Malaysia
Global partnerships that provide programme for UK Partnering for
technical advice, financial assistance Accelerated Climate Transitions. This is
and spur investments to scale clean a FCDO funded programme that funds
growth will be critical to this. climate projects across rural
electrification, green finance,
Finding a clean growth partner in the nature-based solutions and low carbon
UK. The UK’s clean growth journey offers city planning. More G2G and G2B
knowledge, skills and lessons learned to collaborations are highlighted in Section
Malaysia. These lessons include backing 4.1 and Section 9.2.9.
ambitious targets with implementation
plans, public sector investments to In terms of past and present B2B
influence the market and public-private collaborations, there are currently
collaboration on low carbon technology MOU’s between the Standard and
commercialisation. The UK stands to be Industrial Research Institute of Malaysia
an ideal collaborator in supporting and Ion Ventures as well as Storegga
Malaysia’s clean growth transition and Petronas on the development of
through bilateral and industry renewable energy infrastructure and
partnerships. carbon capture, usage and storage,
respectively. Bursa Malaysia and the
Building on UK-Malaysia collaborations. London Stock Exchange launched in
The UK’s long-standing history of 2023 a centralised sustainability
international cooperation has built a reporting platform to support
strong foundation for partnership with standardised environmental, social and
Malaysia. Several successful governance disclosures. There is also
collaborations in decarbonisation are the UK-Malaysia Digital Innovation
already underway between both Programme, which is described further
countries. These include G2G, G2B and below.

Box 1.1: Examples of UK-Malaysia collaborations on decarbonisation

The Malaysia-UK Climate Partnership Agreement was signed between the two countries in June 2022 to
pave the way forward on tackling climate change and to encourage investments into decarbonisation
initiatives. The partnership covers five main areas: collaboration on climate and biodiversity issues,
knowledge sharing, promoting scientific and technical collaboration, supporting private sector
involvement and promoting outreach activities.44

The Standard and Industrial Research Institute of Malaysia and Ion Ventures from the UK signed a MOU in
December 2022 focusing on developing energy infrastructure. The two parties will look to cooperate in
the following areas in Malaysia: (i) the development of suitable solar photovoltaic and battery energy
storage systems, (ii) inspection, certification and valuation for potential battery energy commercial and
industrial clients.

The UK-Malaysia Digital Innovation Programme aims to connect UK tech businesses with leading
Malaysian corporates. This inaugural programme is supported by the UK’s Digital Trade Network and one
of Malaysia’s largest conglomerates, Sunway Group.
Thirteen UK net zero tech companies spanning the areas of food security, smart cities, sustainable and
efficient energy, and circular economy were selected as finalists for the programme.

20 Clean Growth Handbook Malaysia

 Key features of the
1.7 Handbook
Market highlights. Clean growth market Project snapshots. Throughout the
overviews are provided for the Malaysia Handbook, brief overviews are provided
priority sectors. Highlights for each on policies, programmes and projects to
priority sector cover key policies, current supplement the main body of text. These
adoption and growth areas. serve as additional reference points to
inspire action.

Stakeholder ecosystem mapping. Key Enablers. A review of nine clean growth

stakeholders involved in clean growth in enablers in Malaysia and the UK
Malaysia and the UK are provided provides a macro view of the
across six categories. While these are components currently in, or that should
not exhaustive, they serve as a good be in place, to facilitate a successful
starting point for new entrants. transition to a low carbon economy.

Public Sector Private

and Government Sector Directive Enablers
Governance. xxx Policies. xxx Standards. xxx

Clean Business Case Enablers

Non-
Industry Growth
governmental Data and Market Technology and
Associations Stakeholder
Organisations Infrastructure. xxx Incentives. xxx Innovation. xxx
Ecosystem

Implementation Enablers
Academia and Funding and
Financial Financing. xxx Capabilities. xxx Collaboration. xxx
Research
Institutions
Institutions

Malaysia project spotlights. Within the UK spotlights. The Handbook features a

priority sectors, upcoming selection of UK policies, projects and
decarbonisation initiatives in Malaysia companies that support clean growth.
have been identified that companies in They have been chosen based on their
both Malaysia and the UK could get relevance to the Malaysian context, as
involved in. These are typically large well as to inspire and highlight possible
scale projects, spanning across multiple pathways that Malaysia can take in its
years and involve numerous clean growth journey.
stakeholders in the public and private
sectors.

Malaysia Project Spotlight: UK Spotlight:

Collaboration opportunities with the Directory. The Handbook includes a link

UK. Throughout the Handbook, to Datacity’s Net Zero Real-Time
technical and financial support that the Industrial Classification tool, The
UK could provide organisations in Association for Renewable Energy &
Malaysia is highlighted. A selection of Clean Technology’s Members Directory,
UK players that can support in these a consolidated list of UK organisations
areas is also provided in this Handbook. mentioned in this Handbook and several
others. This Directory serves as useful
starting point for embarking on
collaborations in clean growth.

Clean Growth Handbook Malaysia 21

 Who is this Handbook for?
1.8
What to expect. This Handbook What not to expect. This Handbook is
provides the reader with a baseline not intended to be exhaustive or for use
understanding of clean growth in to make investment decisions; it is a
Malaysia. This includes the country’s guide for potential collaboration
strengths and areas for development, in opportunities informed by desk based
terms of both market opportunities and research and stakeholder insights. Given
its enabling environment. The Handbook the pace of change in clean growth,
also maps out the UK’s clean growth readers are encouraged to supplement
journey and ecosystem, with a focus on the information provided in this
how UK experience and expertise can be Handbook with direct stakeholder
leveraged in Malaysia for mutual engagement. Many Malaysian and UK
benefit. stakeholders can be found in the main
body of the Handbook, with a UK
company directory in the Appendix.

Table 1.2:
Sections of the Handbook that different
stakeholders should focus on

Stakeholder What this handbook provides Key sections

Malaysian This Handbook highlights how public sector organisations in all levels 2, 4, 5, 6, 7, 8, 9
public sector of government can lead and drive low carbon growth. The spotlight
projects provide useful experiences from the UK that public sector
officials in Malaysia can draw on to inform, inspire and guide their line
of work. The Handbook also provides a selection of knowhow and
capabilities that government officials in Malaysia can tap into – either
locally or from the UK – to support clean growth in Malaysia.

Malaysia’s existing A bird’s eye view of the overall targets, initiatives and key projects at 3, 4, 5, 6, 7, 8
clean growth players the national, local and sectoral levels. This can enable forward looking
and holistic decision-making. The Handbook maps industry players in
the clean growth ecosystem both in Malaysia and the UK.

Malaysia’s clean This Handbook provides useful benchmarks and best practices from 2, 3, 4, 5, 6,
growth new entrants local and UK players, from which new entrants can identify areas in 7, 8, 9
which they may want to develop their own capabilities in order to
participate in the expanding clean growth arena. There is information
on various local and UK companies that could aid in this effort.
The Handbook also provides information on the enabling landscape,
which serves as useful context.

UK clean growth UK companies exploring opportunities in Malaysia will be able to 2, 3, 4, 5, 6,

players better understand the clean growth landscape in Malaysia, as well as 7, 8, 9, 10
opportunities to add value to Malaysia’s journey. The clean growth
projects in Malaysia presented in the Handbook outlines capabilities
and areas for development. Also included is the ecosystem map of
relevant stakeholders, together with a list of current goals and targets
that Malaysia aims to achieve in clean growth.

22 Clean Growth
Clean Handbook MalaysiaMalaysia
Growth Handbook
 Section 2

The global clean growth

context
This section provides an overview of the uptake of the agenda across the globe.
Based on lessons learned, the ecosystem and enablers required for clean growth are
also presented. These serve as frameworks for reviewing the Malaysian and UK
markets.

Clean Growth
Clean Growth Handbook
Handbook MalaysiaMalaysia 23
8
 Global trends in clean growth
2.1 adoption
The green race is on. Arguably, clean Beyond nation states making big moves,
growth is becoming the leading, perhaps subnational governments and cities are
only, growth strategy for pursual by also developing strategies of their own.
governments across the globe. This is in Examples include the Green City Action
response to the ‘green race’; if a nation Plan of Tirana, the Green Economy
is not seen to be growing green, they Policy for Sarawak and the Clean
may struggle to grow in the face of Growth Action Plan for West Yorkshire
increasing global green trade Combined Authority. The future of
requirements and competition.1 One economic development at different
recent gamechanger is the EU’s Carbon geographical scales looks set to
Border Adjustment Mechanism that will incorporate clean growth.
see a tax imposed on imported goods
based on its embodied carbon. The The transition process. It must be
mechanism hopes to encourage cleaner acknowledged that achieving net zero
production in non-EU countries through clean growth is a journey. Some
exporting to the EU. countries are less enabled by
government commitments, financial
Clean and green growth is gaining resources and socioeconomic
traction. Many countries across the conditions than others. Examples
globe are beginning to adopt clean and include lower income countries,
green growth strategies to support their countries with economies reliant on the
decarbonisation commitments and oil and gas industry, and countries
economic growth agendas. This includes experiencing geopolitical challenges. In
some of the world’s largest economies these cases, the transition to net zero
such as the US, China and Japan. Closer may be slower. Taking the energy sector
to home, Singapore and Indonesia have as an example, transition fuels like blue
also developed strategies. hydrogen and natural gas may be
adopted while electricity networks,
power generators and supply chains
take time to create whole new industries
to adapt to a lower carbon future.

24 Clean Growth Handbook Malaysia

Box 2.1: Clean and green growth strategies across the globe

US Inflation Reduction Act 2022

The act implemented by the US is a historic down payment on deficit reduction to fight inflation, invest
in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40% by
2030.

China 14th Five Year Plan

China’s 14th Five Year Plan lays down the strategy and pathways for 2021-2025 and includes
environmental and energy efficiency targets. It reiterates targets to peak emissions by 2030 and
achieve carbon neutrality by 2060.

Japan’s Green Growth Strategy through Achieving Carbon Neutrality in 2050

The Green Growth strategy sets out to reduce carbon emissions through two pillars: decarbonisation of
the electric power sector and the electrification of other sectors including manufacturing and
transportation.

Singapore Green Plan 2030

The Singapore Green Plan charts ambitious targets for Singapore up to 2030 and positions the country
to achieve long-term net zero emissions aspirations by 2050. A key target is to quadruple solar energy
deployment by 2025.

Indonesia Green Economy Index

The Indonesian Green Economy Index is a performance index that uses 15 indicators under economic,
environmental and social pillars to measure the effectiveness of Indonesia’s economic
transformation.

Clean Growth Handbook Malaysia 25

 Multilateral collaboration
2.2

“
Acknowledging the need for emissions reduction targets. At COP26, it
collaboration. From the early 1990s, was agreed under Article 6 that
countries started to understand that countries will be able to transfer carbon

The climate crisis tackling climate change while

addressing other environmental, social
credits from the reduction of GHG
emissions in their own country to help
and economic issues, is a challenge that other countries meet their NDC targets.3
is the defining cannot be addressed alone. Systemic
challenges require a systems response. The Sustainable Development Goals. In
issue of our time. International collaboration through 2015, the United Nations General
global agreements and initiatives is key. Assembly adopted the Agenda 2030
It must be the first resolution - under which the 17 United
The Paris Agreement. The United Nations Sustainable Development Goals
priority of every Nations has galvanised action on
decarbonisation by providing a global
(UN SDGs) were established.4 Of the 17
UN SDGs, the goals relating to

government and platform for cooperation and dialogue

on climate change. The United Nations
affordable and clean energy (SDG 7),
sustainable economic growth (SDG 8)

multilateral Framework Convention on Climate

Change (UNFCCC) facilitates climate
and climate action (SDG 13) are
considered most related to clean
mitigation and adaptation action growth.5, 6 Countries acknowledge that
organisation. through conventions such as the they must collaborate to fulfil this
biannual Conference of Parties (COP) agenda and accelerate their SDGs.
Antonio Guterres, United Nations
and international treaties such as the
Secretary-General
Paris Agreement, which was adopted by The rise of international collaboration.
196 Parties at COP21.2 While global compacts were active
before the Paris Agreement and Agenda
The ‘Paris Rulebook’ was established to 2030, more have emerged since to
set out guidelines for implementation of capitalise on the power of collaboration.
the Paris Agreement. This includes Examples of international cooperation
Article 6 that allows countries to under economic, financial and
cooperate with each other on a subnational categories are provided to
voluntary basis to achieve their NDC the right and overleaf.

26 Clean Growth Handbook Malaysia

Box 2.2: Economic collaborations

The Global Commission on the Economy and Climate bring together economic and policy research institutes across the
globe to analyse the economic risks and opportunities that arise from climate change. Its flagship project, the New
Climate Economy, aims to produce evidence on the compatibility of climate policy with strong economic performance.7

The Green Growth Partnership is a joint initiative between Corporate Leaders Group Europe and the Green Growth Group.
It comprises corporate leaders and ministers who promote exchange and pursue development of economic
transformation in response to climate change.8

The Climate Club was established by G7 leaders in 2022. It is intended to advance cooperation agreements with a view to
support countries in their transformation. Among its main objectives is to transform industries to accelerate
decarbonisation and expanding markets for green industrial products.9

At COP26, the Breakthrough Agenda was launched to focus on the decarbonisation under five key sectors; namely power,
road transport, steel, hydrogen and agriculture. It consists of a coalition of 45 world leaders, representing over 50% of
global GDP to set out a 12-month action plan that focuses on making clean technology cheaper and more accessible.10

The Clean Energy Ministerial brings together high level officials from 29 member countries to share lessons learned and
best practices to encourage the transition within the energy sector to reach a clean energy economy.11

Box 2.3: Financial collaborations

The Green Climate Fund was established under the Cancun Agreements in 2010 by 194 governments as a response to
support developing countries to realise their climate ambitions through capitalising on new growth and investment
opportunities. Its approach includes catalysing climate innovation and de-risking investment to mobilise climate finance
at scale.12

The Coalition of Finance Ministers for Climate Action was launched in 2019 and brings together fiscal and economic
policymakers from over 80 countries. The coalition was formed with the understanding that finance ministers can play a
leading role by incentivising climate-informed public expenditure and utilising climate fiscal tools such as carbon taxes
and emissions trading systems to cut emissions and prioritise low carbon growth.13

The Just Energy Transition Partnership (JETP) programme is a financing cooperation mechanism that aims to support
heavily coal-dependent emerging economies to make a just transition. The JETP is a new model for international
cooperation that combines public and private investments that assist with climate financing particularly in transitioning
energy generation away from fossil fuels. The public sector partners are known as the International Partners Group and
now comprise the EU, the UK, France, Germany, the US, Italy, Canada, Japan, Norway and Denmark. The first country to
receive a JETP package was South Africa. Indonesia and Vietnam are next in line.14

Box 2.4: Subnational collaborations

The Global Covenant of Mayors for Climate and Energy has a mission of galvanising climate and energy action across
cities worldwide with a global alliance of over 11,500 cities and local governments. Its three core initiatives focus on
supporting local policymakers by using data-based solutions, innovation and expediting city climate finance.15

ICLEI - Local Governments for Sustainability is a global network of more than 2,500 local and regional governments whose
vision is to bring the latest global knowledge and solutions for application to local contexts. Its work helps cities, towns and
regions to anticipate and respond to complex challenges, from rapid urbanisation and climate change to ecosystem
degradation and inequity.16

C40 is a network of mayors of nearly 100 world-leading cities with a mission to halve the emissions of its member cities
within a decade. It holds several functions including raising the climate ambition levels of its members, influencing the
agenda through diplomacy and stakeholder engagement, driving movements like the Global Green New Deal and scaling
climate action in the following thematic areas: adaptation and water, air quality, energy and buildings, food systems,
transportation, ports and shipping, urban planning and waste management.17 The organisation also has a finance facility
involved in project preparation and linking projects to finance.

Clean Growth Handbook Malaysia 27

 Collaboration across
2.3 Southeast Asia
The impacts of climate change in sustainability. The report has become a
Southeast Asia. The Association of primary source of information, analysis
Southeast Asian Nations (ASEAN) has and projections for energy in the ASEAN
ten member states: Brunei, Cambodia, region. The document complements the
Indonesia, Laos, Malaysia, Myanmar, latest iteration of the ASEAN Plan of
Philippines, Singapore, Thailand, and Action for Energy Cooperation (APAEC)
Vietnam. The rapid increase in 2016-2025 Phase II, serving as the
population, urbanisation and regional energy cooperation blueprint.20
progressive economic development in Among programmes included is the
the region has led to a 56% rise in ASEAN Power Grid (APG) to enhance
carbon emissions from 696 million metric electricity interconnectivity and the
tonnes in 2000 to 1.5 billion tonnes in Trans-ASEAN Gas Pipeline.
2021.18 The most notable impacts of
climate change in ASEAN have been on Support from across the globe.
biodiversity and resilience. Countries across the globe are
supporting ASEAN through technical
Longstanding cooperation across the and financial assistance. In 2019, the
region. The region has been ASEAN Catalytic Green Finance Facility
collaborating on the sustainability was launched by the Asian Development
agenda for almost a decade. In 2015, Bank to provide ASEAN member
ASEAN adopted its Socio-Cultural governments access to over USD1 billion
Community Blueprint 2025 to include the in loans to accelerate green
conservation of biodiversity and natural infrastructure investments. Financing
resources, promotion of sustainable and funds have been contributed by
cities, collaboration on climate change Asian Development Bank itself, The
adaptation and mitigation, and the European Investment Bank, KfW
promotion of sustainable consumption Development Bank, Green Climate Fund,
and production.19 the UK, the EU, France, Germany, Italy
and South Korea.21 Japan has also
In 2022, the ASEAN Centre for Energy recently initiated the Asia Zero Emissions
published The 7th ASEAN Energy Community with ASEAN to advance
Outlook 2020-2025. It covers topics such cooperation in carbon neutrality, energy
as energy demand and supply, energy security and the energy transition, all
accessibility, energy efficiency, energy while achieving economic growth.22
security and environmental

28 Clean Growth Handbook Malaysia

Box 2.5: Other collaborations between ASEAN countries on clean growth

Cooperation on the digital economy and the green economy

In 2023, Malaysia and Singapore inked two Frameworks on Cooperation in the digital
economy and green economy. While the framework on digital economy focuses on
trade facilitation and cross-border data flows, the green economy cooperation will
look into the development of new technology standards.23, 24

ASEAN Taxonomy for Sustainable Finance Version 2

The ASEAN Taxonomy Board, representing ASEAN financial sectoral bodies, released
the ASEAN Taxonomy for Sustainable Finance Version 2 in March 2023. The
multi-tiered framework is intended to facilitate transition of ASEAN member states to
recognise the diversity in economic development, financial sector and infrastructure
maturity.25

ASEAN-UK Strategy for Carbon Neutrality

The first ASEAN-UK Post Ministerial Conference took place in Cambodia in 2022 as
part of the ASEAN-UK Dialogue Partnership. One of the initiatives included in the Plan
of Action is to provide support towards ASEAN, including Malaysia, decarbonisation
initiatives for the transition to net zero and to implement the ASEAN Strategy for
Carbon Neutrality.26, 27

Clean Growth Handbook Malaysia 29

 Malaysia Project Spotlight:
Malaysia’s contribution
to the ASEAN Power
Grid

Organisation profile: ASEAN represents Timeframe: APG was initially identified

a combined population of around 664 in the first ASEAN Plan of Action for
million people across 10 countries Energy Cooperation (APEAC) series
including Malaysia. Of the total 1999-2004. The latest plan for APG
population, the urban population was covers the period from 2021 to 2025.30
50% in 2021. This figure has grown Details on subsequent phases are yet to
rapidly over the last few decades, from be published.
21% in 1967, which has contributed to
significant economic growth. The Description: A pilot project coined the
combined GDP was USD3.3 trillion in Lao PDR–Thailand–Malaysia–Singapore
2021, making ASEAN the 5th largest Power Integration Project was carried
economy in the world.28 The energy out to understand the technical, legal
driving its cities and businesses has been and financial requirements of
a critical point of discussion. For this multilateral electricity trade. The project
reason, energy is one of ASEAN’s priority became live in June 2022 where over
areas of cooperation to strengthen 170,000 MWh of electricity was
energy security and transition the region successfully imported to Singapore from
towards clean energy.29 The ASEAN Lao PDR via Thailand and Malaysia.31
Power Grid (APG) initiative is helping to Other interconnection projects that
realise this goal, in which Malaysia plays support the ASEAN Power Grid have also
a key role. Tenaga Nasional, Sarawak been commissioned. This includes the
Energy and Sabah Electricity are some Trans-Borneo Power Grid Sarawak–West
of the key Malaysian players driving Kalimantan Interconnection Project. The
projects under the APG. project has allowed Sarawak, Malaysia
to export electricity to West Kalimantan,
Location: APG will involve the Indonesia since 2016. The Northern Grid
construction of a regional power Extension project connecting Malaysia’s
interconnection, with a final goal to Sarawak and Sabah is currently
construct an integrated power grid undergoing commercial discussions. The
system across 10 ASEAN member states. next challenge will be to add a
In Malaysia, interconnections are submersible line from Singapore to
envisaged across Peninsular Malaysia, Indonesia, Malaysia and Brunei to the
Sabah and Sarawak. Philippines. 32

30 Clean Growth Handbook Malaysia

 The stakeholder ecosystem
2.4
The stakeholder ecosystem. Key to the The role of stakeholders. Each
acceleration of clean growth is building stakeholder group has a level of
a robust ecosystem with government, influence that make them pivotal to
industry, civil society, finance and enabling the ecosystem. Public and
academic stakeholders. The United private sectors play a critical role in
Nations Environment Programme setting the agenda and providing
suggests that multi-stakeholder innovation and investments while other
partnerships support the acceleration stakeholders support in raising
and consolidate sustainable changes to awareness and providing platforms. The
both consumption and production roles of each stakeholder in enabling the
patterns.33 adoption of clean growth is summarised
below:

Public sector and government. This Private sector. The private

includes government ministries, sector includes companies and
agencies and institutions that serve organisations that operate on a
the public. The public sector plays a for-profit basis. They provide
crucial role in implementing policies goods and services in response
and regulations friendly towards to market demand and drive
clean growth. technological innovation.

Public Sector Private

and Government Sector
Industry associations. These Non-governmental organisations.
associations play a key role as NGOs and civil society are
platforms for their members to widely involved in advocacy
Clean
collaborate or to shape Non- work. NGOs usually play a key
Industry Growth
governmental
industry standards. They can Associations Stakeholder role in raising awareness and
Organisations
Ecosystem
act as a bridge between the advocating for policies and
private sector and the regulations that are friendly
government. towards clean growth.
Academia and
Financial
Research
Institutions
Institutions

Academia and research Financial institutions. The

institutions. These actors focus financial industry have the role of
on developing knowledge and providing the necessary finance
are crucial for capacity to support clean technology
building. Research can investments and capital
influence policy directions and requirements for sustainable
also contribute to the business growth. They can act as
development of new the intersection between public
technologies or services. and private collaborations.

Clean Growth Handbook Malaysia 31

 Key enablers of clean growth
2.5
Enabling factors. Stakeholders in the Business case enablers support the
ecosystem need support and direction in commercial case for adopting clean
various forms to incentivise the uptake growth, covering:
of clean growth opportunities and - Data and infrastructure
successfully implement them. For
- Market incentives
example, policies may set a target to
ramp up renewable energy generation - Technology and innovation
but it will also need access to Implementation enablers include
technologies, finance from local or practical elements required for
international sources and infrastructure successful delivery, covering:
connection capabilities to the grid.
- Funding and financing
Nine enablers for clean growth have - Capabilities
been identified across three categories, - Collaboration
which are described further overleaf in
Figure 2.1: The nine enablers are based on the
OECD’s key contextual factors to enable
Directive enablers set the direction green growth34, research conducted by
and basis for interoperability, the African Development Bank35 and
covering: enablers identified by Arup in The Global
- Governance Green Economy report.36 Together they
ensure a successfully operating
- Policy and regulation
ecosystem.
- Standards

32 Clean Growth Handbook Malaysia

Figure 2.1:
Description of the nine enabler categories

Directive enablers

Governance Policy and regulation Standards

This refers to the institutional set up Policies, strategies, plans and laws Standards and regulations set
and working arrangements between set the direction of travel for clean minimum requirements that
the public sector with the rest of the growth. They must be consistent and everyone must meet. This could be in
clean growth ecosystem. Good complementary to steer the market. terms of design, construction and
governance results in effective Policies should be informed by the operations, among other aspects.
cooperation and collective decision latest data and science, while Beyond minimum quality
making towards a clean growth leaving space for innovation and requirements, it supports
agenda. Transparency of roles and competition. A coherent policy collaboration between different
responsibilities supports stakeholder framework provides a level playing stakeholders such as through
collaborations and overall market field for both the public and private interoperability.
dynamics. sectors by putting in place
boundaries that all players must
work within.

Business case enablers

Data and infrastructure Market incentives Technology and innovation

Supporting data infrastructure can Incentives can catalyse the At the heart of clean growth lies
enable investments by providing an formation of new clean growth technology, existing and novel, for
evidence base and the business markets. Examples include putting in abating GHG emissions. Innovations
case, respectively, for stakeholders. place financial incentives such as are also expected in material
For example, in the case of energy, tax breaks and subsidies for the science and business models, and
this could include solar power private sector, and the marketing of they could come from the private
generation assessments in certain low carbon options to consumers. sector, academia, and research and
geographies to encourage Incentives help drive supply and development institutions.
investments and robust grid demand to align climate ambition Having access to technology at
infrastructure with adequate with action. reasonable prices is critical for their
capacity to integrate renewables. adoption, which in turn is a success
factor for market competitiveness.

Implementation enablers

Funding and financing Capabilities Collaboration

Funding and financing take multiple Clean growth requires a workforce Stakeholders in the ecosystem can
forms, from government budgets with a diverse set of skills and benefit from access to platforms
and grants to private finance knowledge that can innovate the that bring them together to drive
instruments such as loans and transition to a more sustainable change. This could be forums for
bonds. Green and climate finance economy. There is a strong public-private engagement or
instruments that factor in corelation between education, business support platforms for
decarbonisation and societal human capital and economic private sector organisations.
benefits are now gaining traction growth. Through such platforms, the private
and encouraging the uptake of sector can gain clarity from
clean growth initiatives. government, the government can
obtain policy feedback,
collaborations can be sparked within
the private sector and new entrants
can gain access to expert support.

Clean Growth Handbook Malaysia 33

 Section 3

Clean growth in Malaysia

This section provides an overview of Malaysia’s existing and upcoming policies
related to economic growth and sustainability, with a particular focus on
decarbonisation. An overview of Malaysia’s clean growth stakeholder ecosystem is
also provided, together with existing and planned clean growth projects, to start
understanding the clean growth landscape in Malaysia.

34Growth Handbook Malaysia

Clean Clean Growth Handbook Malaysia 8
 Malaysia’s clean growth
3.1 policy highlights

• Malaysia is a federation consisting of • Despite decarbonisation ambitions

11 states and three federal territories. laid out in various plans, there is still a
There are three levels of government: need for a more coordinated
federal, state and local. approach as individual sector
strategies have yet to be considered
• While the term ‘clean growth’ is new in an integrated way or in an
to Malaysia, the country’s clean overarching national strategy. This is
growth ambitions can already be seen something for Malaysia to consider
across multiple policies, strategies and may already be doing so as part
and plans at federal, regional, state of the LT-LEDS assessment.
and local levels. National plans focus
on shaping the economic growth and • Malaysia’s approach to economic
decarbonisation trajectory of and emissions accounting by sector
Malaysia as a whole. Its policies are seems to be disjointed, which makes it
therefore covering multiple states and challenging to understand the
cut across various sectors. State and emissions intensity of each sector.
city plans outline more granular This is important as Malaysia’s target
policies and targets that are in its NDC is based on emissions
dependent on the local economy. The intensity.
state and local governments have
jurisdiction over urban planning, basic • The policies and plans reviewed in the
infrastructure and business licensing preparation of this Handbook are
thus allowing them to have better listed below. The policies summarised
oversight in these matters. in this Handbook were accurate at
the time of writing. It is important to
• In its latest NDC, Malaysia has note the clean growth policy arena is
committed to reducing GHG fast moving and the change in
emissions intensity against GDP by government in November 2022 may
45% from 2005 baseline levels by result in policy updates in the future.
2030.

Box 3.1: Key clean growth related policies and plans in Malaysia

National policies and plans

• Shared Prosperity Vision 2030 • National Policy on Climate Change
• Twelfth Malaysia Plan 2021-2025 2009
(12MP) • Nationally Determined Contribution
• National Fourth Industrial Revolution • National SDG Roadmap
(4IR) Policy

Sector policies and plans

Power Buildings
• National Energy Policy • Green Technology Master Plan
• National Energy Efficiency Action Plan 2017-2030
2016-2025
• Renewable Energy Roadmap 2021 Manufacturing
• Green Technology Master Plan • Green Technology Master Plan
2017-2030 2017-2030
• National Energy Efficiency Action
Transport Plan 2016-2025
• National Transport Policy 2019-2030 • National Policy on Industry 4.0
• Low Carbon Mobility Blueprint 2030 2019-2025
• Green Technology Master Plan • National OGSE Industry Blueprint
2017-2030 2021-2030
• National Energy Policy • National Automotive Policy 2020

Clean Growth Handbook Malaysia 35

 National economic and
3.2 sustainability aspirations
Malaysia’s economic growth. The It is a commitment to achieve
Malaysian economy has grown rapidly sustainable economic growth
since 1971 despite enduring several accompanied by fair, equitable and
economic crises that were caused by inclusive economic distribution, across
external shocks. Between 1991 to 2020, all income groups, ethnicities, regions
real GDP grew by 5.2% per annum, and supply chains.
underpinned by strong domestic
demand, particularly private Twelfth Malaysia Plan. Malaysia
consumption spending. The services, adopted the 2030 Agenda for
manufacturing and agriculture sectors Sustainable Development (2030 Agenda)
represented the largest economic in 2015, which is a United Nations global
contributors for Malaysia at 58%, 24% commitment towards a more
and 7% respectively, and this is sustainable, resilient and inclusive
expected to remain the same in 2023 development. In line with the SPV 2030
based on forecasts.1 While the aspiration and 2030 Agenda, the Twelfth Malaysia
to grow Malaysia’s economy remains Plan 2021-2025 (12MP) – the twelfth
strong, the government now five-year development plan for Malaysia
acknowledges that it must be done in a – aims to achieve a prosperous, inclusive
sustainable manner. This was evident in and sustainable Malaysia.3
the recent 2023 Budget announcement
that is geared towards driving the The 12MP is anchored in the three
growth of the country’s green economy. themes:
1. resetting the economy
Shared Prosperity Vision 2030. Under
the Shared Prosperity Vision 2030 (SPV 2. strengthening security, wellbeing
2030), Malaysia aims to provide an and inclusivity
enhanced standard of living for all by 3. advancing sustainability
2030 with three objectives.2 This
includes: The 12MP builds on the efforts made
1. attaining development for all during the Eleventh Malaysia Plan
2016-2020 (11MP) to embed the SDGs
2. addressing wealth and income within Malaysia’s five-year development
disparities plans. Theme 3 in the 12MP specifically
3. making Malaysia a united, focuses on advancing green growth as
prosperous and dignified nation well as enhancing energy sustainability
and transforming the water sector.

36 Clean Growth Handbook Malaysia

 The 12MP recognises the importance of socio-environmental wellbeing agenda,
collaboration between public and the link between specific technological
private sectors to reduce GHG applications and specific
emissions. This is an important step socioenvironmental impacts is not
towards fulfilling Malaysia’s stated.
commitment to the Paris Agreement as
stated in Malaysia’s latest Nationally Sustainable Development Goals. The
Determined Contributions. The 12MP SDGs have been embedded in
encourages more private sector Malaysia’s five-year development plans
companies to declare their aspirations (the 11MP and 12MP), through their
to achieve net zero by 2050, which economic, environmental and social
is line with the government’s ambitions. targets. For the 2022 National Budget,
However, a formal national net zero the Ministry of Finance undertook a
commitment is yet to be made by the comprehensive exercise to tag
government. programmes and projects across all
government ministries and agencies to
The government is currently preparing the SDGs to ensure all 17 goals were
the Midterm Review of the 12MP planned given equal focus and attention.4
to be published in September 2023. This Malaysia can now identify gaps in
will include a review of mega-projects to funding that could be filled by the
be implemented such as rail and road MySDG Trust Fund that was launched in
networks, airports and ports, which may 2021 to accelerate the achievement of
result in some changes. Some of these the 2030 Agenda.
changes may support low carbon
development like supporting the Sustainable Development Goals
expansion of the rail network, while Roadmap. The Ministry of Economy
others could oppose it by locking in the (MOEc), formerly known as the Economic
use of high carbon fuels. Planning Unit, is the focal point for
sustainable development and acts as a
National Fourth Industrial Revolution coordinating agency on the initiatives
Policy 2018-2030. In support of the 12MP related to sustainable development
and SPV 2030, the National Fourth including the SDGs. As part of its efforts
Industrial Revolution (4IR) Policy was to steer the development direction in
developed to drive socioeconomic Malaysia based on the SDGs, Malaysia is
development of the country through the pursuing the 2030 Agenda over three
ethical use of 4IR technologies such as phases with each phase lasting
artificial intelligence, internet of things, five-years.5 The Economic Planning Unit
cloud computing and big data analytics. published the National SDG Roadmap
The application of 4IR technologies is Phase 1 (2016-2020) in 2016. Phase
expected to increase productivity by 2 is yet to be published. Phase 1 outlines
30% across all sectors by 2030 with the importance of mainstreaming SDGs
intentions to support at national and local levels, promoting
socioenvironmental wellbeing for all. ownership and participation as well as
Although this policy was developed with mobilising resources through
the intention of contributing to the partnerships.
Clean Growth Handbook Malaysia 37
 The Economic Planning Unit published concerted and holistic manner.7 It is also
Voluntary National Reviews (VNRs) of one of the national policies regulating
the roadmaps in 2017 and 2021 to boost the Malaysia Green Technology
monitoring and reporting efforts for the Council’s role as a catalyst for green
2030 Agenda. The VNRs evaluate economic growth. This policy is currently
Malaysia’s efforts towards the SDGs with being revised by the Ministry of Natural
a series of baseline studies, Resources, Environment and Climate
engagements and consultations.4,6 The Change (MNRECC), and is expected to
2021 VNR indicated that Malaysia’s come into force late 2023 or early 2024.
SDGs progress and its wider
developmental records are strong. The Nationally Determined Contribution.
country has successfully raised living Following the ratification of the Paris
standards, enhanced food production, Agreement, Malaysia has committed to
provided quality and accessible reducing GHG emissions per unit of GDP
healthcare, boosted demand for green by 45% from 2005 baseline levels by
products and services as well as 2030 in its latest NDC submission. There
increased the share of renewables in its has been no formal commitment to a
energy mix. 2050 target yet by Malaysia but former
Prime Minister Ismail Sabri verbally
National Policy on Climate Change announced plans to become a carbon
2009. In 2009, Malaysia published its neutral nation by 2050 during the launch
National Policy on Climate Change that of the 12MP in September 2021.8 The
promotes the implementation of both government is currently undertaking
adaptation and mitigation in an assessments as part of its UNFCCC
integrated and balanced approach. The commitments to develop a Long Term
policy serves as the framework to Low Emission Development Strategy
mobilise and guide government (LT-LEDS) that will be used to inform a
agencies, industries, communities as well 2050 target as well as revised national
as other stakeholders in addressing the climate change legislation.9
challenges of climate change in a

38 Clean Growth Handbook Malaysia

Figure 3.1: Legend
Key national and sectoral plans and Socioeconomic targets
their targets
Decarbonisation targets

National plans Transport sector plans

Shared Prosperity Vision 2030 National Transport Policy 2019-2030

4.7% real GDP growth per annum at constant prices Accelerate implementation of low carbon mobility
initiatives
GDP value of RM3.4 trillion by 2030 at nominal prices
Low Carbon Mobility Blueprint 2030
Twelfth Malaysia Plan
50% of new government fleet to be battery electric
25% of government procurement is green
vehicles by 2025
67% reduction in hydrochlorofluorocarbons
50% of new government linked companies’ fleet to be
consumption
locally manufactured battery electric vehicles by
14 cities to implement green city action plans 2030
Establish a national target of 9,000 AC charging
Nationally Determined Contribution points and 1,000 DC charging points by 2025
45% reduction in GHG emissions intensity to GDP by
2030 compared to 2005 levels Green Technology Master Plan 2017-2030
40% public transport share in all cities

National Energy Policy

Power sector plans 50% modal share for urban public transport
38% share for electric vehicles
National Energy Policy
B30 as alternative fuel standard for transport
11% energy efficiency savings for industrial and
commercial buildings, 10% for residential
>18,000MW total installed capacity of renewable
energy
Manufacturing sector plans
<19% installed capacity for coal
17% renewable energy in total primary energy supply Green Technology Master Plan 2017-2030
50% of manufacturers in green manufacturing
National Energy Efficiency Action Plan 2016-2025
Electricity demand reduction of 8.0% National Automotive Policy 2020
Total capacity saving of 2,526 MW RM104 billion GDP contribution by 2030

Total GHG reduction of 38 million tonnes of RM10 billion exports for remanufactured automotive
carbon dioxide equivalent parts and components

Renewable Energy Roadmap 2021 National OGSE Industry Blueprint 2021-2030

12,916 MW of renewable energy capacity by 2025, RM40 billion – RM50 billion GDP contribution by 2030
equivalent to 31% renewable energy mix 50% industry’s total revenue and 25% revenue
17,996 MW of renewable energy capacity by 2035, outside of oil and gas sector
equivalent to 40% renewable energy mix
National Fourth Industrial Revolution Policy
Green Technology Master Plan 2017-2030 Increase Malaysian Wellbeing Index from 124.4 in 2018
30% renewable energy of total installed capacity to 136.5 in 2030
15% reduction in electricity intensity 30% uplift in productivity across all sectors by 2030
compared to 2020 levels
Achieve 3.5% gross expenditure on R&D
Improvement in Malaysia’s ranking in Environmental
Buildings sector plans Performance Index from 68 among 180 countries to top
50 in 2030
Green Technology Master Plan 2017-2030
Increase total number of green buildings to 1,750

Clean Growth Handbook Malaysia 39

 Upcoming national plans
3.3
Overview. While Malaysia’s efforts in established the Bursa Carbon Exchange
pursuing the sustainability agenda (BCX). BCX is a voluntary carbon market
through its various plans should be (VCM) exchange to promote Malaysia’s
lauded, the country recognises that low carbon transition. It is the world’s
more work needs to be done and plans first Shariah-compliant carbon
are already underway. Some of the exchange, providing sustainable and
upcoming national policies and plans Shariah-compliant solutions bundled
include the 12MP midterm review, a into one for investors. The VCM will
Climate Change Act and the enable companies to generate,
establishment of carbon pricing purchase and sell voluntary carbon
instruments. These are described further credits, with the BCX facilitating
below. Upcoming sector policies and transparent prices for high-quality
plans such as the Energy Efficiency and carbon credits derived from nature-
Conservation Act and the Energy based solutions and technologies that
Transition Roadmap are set out in their reduce or remove carbon emissions. The
respective sector overview sections. first trades on the exchange has taken
place in March 2023.
As previously mentioned, clean growth is
fast moving. Existing plans will be The BCX may increase demand for
revised and new policies will come into high-quality removal credits as
play after the publication of this companies in the hard-to-abate sectors
Handbook. Readers are encouraged to and those with high financed emissions
supplement the information provided in will need offset strategies to meet
this section with additional research in emissions reduction targets. The VCM
case of later developments. will cover distinct product categories,
and the vintage must be from 2016
Twelfth Malaysia Plan midterm review. onwards, with projects registered with
The midterm review of the 12MP is the Verified Carbon Standard (Verra).
expected to be tabled in the Malaysian However, the lack of active
Parliament in September 2023. The Verra-registered carbon credit projects
midterm review will provide an in Malaysia means that the first auction
indication of policy shifts, if any, and will source credits generated from
provide recommendations on the abroad. BCX rules specify that buyers
government’s next steps in key and sellers must be incorporated
infrastructure projects.10 entities, and there will be no restrictions
on the sale of carbon credits generated
Upcoming Climate Change Act. In from Malaysian projects to foreign
September 2021, the Government buyers. Malaysian credits traded on the
announced that legislation on climate BCX will not be able to be used by other
change would be revised to enhance countries to meet their climate targets
coordination of climate change actions or Nationally Determined Contribution.
across the public and private sector.
This includes a revision or replacement For the long term, the BCX serves as a
of the National Policy on Climate stepping stone for plans being
Change 2009 and the introduction of a considered by the government to
Climate Change Act. The Climate implement a carbon tax and Domestic
Change Act will likely include GHG Emissions Trading Scheme (DETS) in the
emissions reduction targets for both the next three to five years.
short and long term (informed by the
LT-LEDS), new structures to be put in The impact of the VCM will depend on
place to support climate change the level of participation from
accountability, and the creation of companies, and the impact of a carbon
institutions for independent and expert tax and DETS will depend on several
advice on climate change.11, 12 The design elements that need to be
legislation is expected to come into established. The World Bank will be
force late 2023 or early 2024. funding technical assistance to support
Malaysia in developing its carbon
Upcoming carbon pricing instruments. pricing instruments through the
In December 2022, Bursa Malaysia – the Partnership for Market Implementation
stock exchange of Malaysia – programme.

40 Clean Growth Handbook Malaysia

 State, regional and city low
3.4 carbon plans
Overview. Malaysia, through its various Transitions (UK PACT) programme.
levels of government has laid out several Sarawak is working on a Green Economy
plans in support of developing a low Policy with focus on nature-based
carbon society. While the importance of solutions, increasing its renewable
coordination at national and state levels energy capacity, growing its hydrogen
remain, the country has also given a economy, adopting technologies for the
focus on planning at city level as seen in agriculture sector and increasing the
the Kuala Lumpur Climate Action Plan urban to rural ratio for a multitude of
2050 and Seberang Perai Climate Action sustainability benefits.14 Johor intends to
Strategy. As Malaysia’s urban develop a Green Growth and Low
population continues to rise, planning at Carbon Policy Framework that looks to
city level is becoming increasingly play on the state’s current strengths in
important as it focuses on the industry, ports and biodiversity. It also
challenges and complexities that are seeks to align with strategies both within
unique to each city. and outside Malaysia. Alongside the
Green Growth and Low Carbon Policy
National Low Carbon Cities Framework, the state is looking to
Masterplan. To build on the low carbon become a carbon offset hub.15
plans that several states and cities have
in place, the National Low Carbon Cities As part of the Post COVID-19
Masterplan (NLCCM) was launched in Development Strategy 2030, Sarawak is
2021. The NLCCM looks to promote aiming to increase public transport
urban development that reduces GHG share to 20% as well as maintaining at
emissions, which makes it well aligned to least 60% renewable energy capacity
the clean growth agenda. There are 33 mix by 2030.16 Sabah also aims to have a
target cities under the masterplan.13 50% renewable energy capacity mix by
2033 as outlined in the Sabah Structure
State level action plans. The states of Plan 2033.17 Meanwhile, the Sabah
Sarawak and Johor are in the process of Development Corridor Blueprint
developing policies targeting green 2021-2030 outlines the target of all oil
growth and a low carbon economy. palm plantations to be certified ethical
Development of both policies are being and green by 2025.18
supported by the UK Partnering for
Accelerated Climate

Clean Growth Handbook Malaysia 41

 Regional level action plans. Iskandar Low Carbon Cities Framework (LCCF)
Malaysia, comprising the districts of formulated by the government in 2011.13
Johor Bahru and Kulai as well as parts of
the district of Pontian, has had a Low The Kuala Lumpur Climate Action Plan
Carbon Society Blueprint 2025 in place 2050 was developed under C40’s
since 2012. Development of this first Climate Action Planning Programme in
blueprint was supported by the Japan Southeast Asia with UK funding.20
International Cooperation Agency and Approximately ten other local
Japan Science and Technology Agency. governments have received support
It highlighted climate mitigation policies from ICLEI and the Global Covenant of
and detailed strategies across the green Mayors on climate action planning.13
economy, community and green
environment. The second Low Carbon Seberang Perai has developed a Climate
Society Blueprint 2030 was launched at Action Strategy, which sets out 2030
COP27.19 The latest blueprint focuses on targets. A coherent set of reduction
both adaptation and mitigation towards methods for the following five sectors
climate change as well as aiming to have been included as part of the city’s
reduce the intensity of GHG emissions decarbonisation pathways: waste,
by up to 70% by 2030 for Iskandar transport, electricity, built environment
Malaysia. This blueprint was peer and industry.21
reviewed as part of the UK PACT
programme and is being part-funded by Melaka and Kota Kinabalu have
Asian Development Bank’s ASEAN developed green city action plans with
Catalytic Green Finance Facility for support from ICLEI that set out
project delivery of which the UK is also a sustainable infrastructure project
partner. pipelines for cities based on economic,
environment and social assessments,
City level action plans. Many cities including that of GHG emissions.22, 23
already have low carbon plans in place. There are plans to develop green city
As of June 2019, a total of 52 local action plans for 14 more cities in
authorities had adopted or joined the Malaysia under an Asian Development
Bank programme.24

42 Clean Growth Handbook Malaysia

Figure 3.2: Legend
State, regional and city decarbonisation Decarbonisation targets
targets
Tentative targets

Regional plan State plan

Low Carbon Society Blueprint for Iskandar Malaysia 2030 Sarawak Post COVID-19 Development Strategy 2030
Reduce the intensity of GHG emissions by up to 70% Increase public transport share to 20%
by 2030
Maintain at least 60% renewable energy capacity
Increase public transport share to 50% by 2050 mix by 2030
60% share for electric vehicles by 2050 60,000 tonne annual reduction to CO2 emissions via
electrification of mobility fleet
58% renewable energy capacity mix by 2050
Sabah Structure Plan 2033
50% renewable energy capacity mix by 2033

City plan Sarawak Green Economy Policy (upcoming)

Tentative target to increase renewable energy
Kuala Lumpur Climate Action Plan 2050 capacity
Active mobility as >70% of mode share Tentative target to grow hydrogen economy
60km2 low impact development implemented across
Kuala Lumpur Johor Green Growth and Low Carbon Policy Framework
(upcoming)
100% of buildings meet Low Carbon Buildings
Checklist requirements Tentative target to become a carbon offset hub
All commercial buildings meet target Building Energy
Intensity

Melaka Green City Action Plans

20% reduction in total electricity use per capita
(KWh/year)
20% of power generation is from renewable energy
50% increase in km of public transit system per
10,000 people
40% reduction in total GHG emissions from the
transportation sector
50% of public vehicle fleet are electric, biodiesel or
hybrid

Seberang Perai Climate Action Strategy

50% GHG reduction of carbon dioxide equivalent by
2030 for electricity sector
50% renewable energy generation
15% GHG reduction of industry emissions by 2030
Reduce Building Energy Index up to 100 kWh/m2/year
50% GHG reduction of carbon dioxide equivalent by
2030 for transport sector
75% GHG reduction of carbon dioxide equivalent by
2030 for buildings sector
30% GHG reduction of carbon dioxide equivalent by
2030 for public sector
Improve energy efficiency of public sector buildings
by 50%

Clean Growth Handbook Malaysia 43

 A snapshot of the clean
3.5 growth market in Malaysia
Market uptake of clean growth. The providing tax incentives for EVs as well
market appears to be accepting of as carbon capture and storage. There
Malaysia moving towards a net zero were also several finance facilities
future. While the term ‘clean growth’ is mentioned in relation to
new to Malaysia, most stakeholders decarbonisation, green technology and
engaged for this Handbook were aware broader sustainability. The government
of the need to reduce their GHG also reaffirmed its commitment to the
emissions and align their business MRT3 project to boost public transport
strategies with a low carbon pathway. coverage. A list of clean growth-related
tax incentives in the Revised Budget
As of 2021, renewables contributed 18% 2023 is provided in the Appendix.
to Malaysia’s energy mix.25 For transport,
EVs are gaining popularity and Factors dampening progress.
companies are developing charging Commercial viability is a huge factor
infrastructure. In the buildings sector, when industry players are deciding on a
new buildings are increasingly pursuing clean growth project/initiative. Industry
green building certification to command players tend to wait for the government
higher rental yields. As of 2022, 638 to announce a clear policy direction
developments have been certified by along with incentives before they
the Green Building Index. Some buildings commit to action.
have rooftop solar installed and energy
efficient. A selection of implemented or Private sector involvement. The UN
ongoing clean growth projects in Global Compact is an initiative to
Malaysia is provided in Figure 3.4. encourage sustainability adoption.
Additional project examples appear in Companies that have signed up include
the sector market overviews. Press Metal Aluminium Holdings, Bursa
Malaysia and Sarawak Energy.
Incentivising uptake. To incentivise
companies to transition towards clean The 12MP sets out the government’s
growth, the government and ambition to have more private sector
government linked companies have companies declare their aspiration to
allocated significant budgets to support achieve net zero carbon emissions by
implementation activities as shown in 2050. Among the companies that have
Figure 3.1. In the Revised Budget 2023 since declared their net zero ambitions
announcement, the government include Petronas, Maybank, Tenaga
continued to incentivise clean growth by Nasional and Sunway Group.

44 Clean Growth Handbook Malaysia

Figure 3.3:
Existing and planned investments in
clean growth in Malaysia

In 2022, the total spend on implementing the UN SDGs was RM309 billion. Of that total, the spend on SGD7 (affordable
and clean energy) and SDG13 (climate action) collectively was RM6.8 billion. This is planned to increase to RM7.6 billion
in 2023.

In the Revised Budget 2023 speech, it was stated that Bank Negara Malaysia is to set up a low carbon transition
facility of up to RM2 billion to support sustainable technology startups and MSMEs to implement low carbon
practices.26

Based on the Revised Budget 2023 speech, Khazanah Nasional will fund RM150 million to spur the development of
environmentally friendly projects including supporting the carbon market and reforestation.27

In 2017, the Green Technology Financing Scheme 1.0 allocated RM3.5 billion to support green technology development
and use in Malaysia. In 2020, 2.0 of the scheme allocated RM2 billion. In 2022, the budget allocated for 3.0 was also
RM2 billion. In the Revised Budget 2023 speech, it was said that the Green Technology Financing Scheme 4.0 will be
enhanced to a value of RM3 billion until 2025.27

As per the Revised Budget 2023 speech, the Malaysian Development Bank will allocate up to RM6 billion for strategic
financing specifically to encourage the sustainable agenda and automation.27

In December 2022, TNB announced its plans to invest approximately RM20 billion in capital expenditure over the next
28 years as part of its plan to fast-track the company’s Energy Transition Plan.28

In March 2023, Petronas announced that it will allocate RM60 billion in capital expenditure over the next five years on
decarbonisation and energy transition activities.29

From January 2021 to September 2022, the Malaysian Investment Development Authority had approved RM4.9 billion
worth of green technology projects, largely covering renewable energy and energy-efficiency.30

Clean Growth Handbook Malaysia 45

 Figure 3.4:
Selection of existing and planned
projects in Malaysia

Power Buildings

Organisation : Tenaga Nasional Organisation : GreenTech Malaysia

Project : 50MW Large Scale Solar PV Plant in Project : Green Energy Office Nearly Zero Energy
Kuala Langat Building in Bangi
Status : Operational Status : Operational

Organisation : Leader Solar Energy Organisation : Kaer

Project : 29MW Large Scale Solar PV Plant in Kuala Project : Cooling-as-a-Service at The Exchange in
Muda Tun Razak Exchange
Status : Operational Status : Under construction

Organisation : Green Lagoon Technology & Farm Fresh Organisation : Universiti Kuala Lumpur
Project : Livestock biogas project using cow Project : Sustainable Energy Living Lab at Universiti
manure in Bandar Muadzam Shah, Pahang Kuala Lumpur’s Gombak-based campus
Status : Under construction Status : Planned

Organisation : Trina Solar & Sarawak Energy Organisation : Sunway Property & ENGIE Services
Project : 50MW Floating Solar PV Project at Batang Project : District Cooling System at Sunway South
Ai Hydroelectric Plant Quay Commercial Precinct 2
Status : Planned Status : Planned

Transport Manufacturing

Organisation : Shell Organisation : IOI Group

Project : High performance, 180kW DC EV charging Project : 15MW biomass co-generation power plant at
network along the West Coast of the palm oil refinery complex in Sandakan
Peninsular Malaysia
Status : Operational
Status : Operational

Organisation : UAC
Organisation : MRT Corporation
Project : Installation of digital monitoring and
Project : 4km Johor-Singapore Rapid Transit control systems to monitor efficiency of
System link by 2026 re-engineered and re-commissioned
compressed air systems
Status : Under construction
Status : Operational
Organisation : Iskandar Regional Development Authority
Project : Deployment of electric and biodiesel Organisation : Petronas
buses for Iskandar Bus Rapid Transit
Project : Evaluation for the development of CCUS
Status : Under construction value chain and carbon storage sites in
Malaysia

Organisation : Tenaga Nasional and MySuri Biz Technologies Status : Planned

Project : Deployment of 1,000 EV taxis in Klang

Valley & Langkawi Organisation : East Coast Economic Region Development
Council
Status : Planned
Project : Eco Industrial Parks in Pahang

Status : Planned

46 Clean Growth Handbook Malaysia

 The clean growth ecosystem
3.6 in Malaysia
A non-exhaustive list of organisations across the six ecosystem stakeholder
categories in Malaysia is provided below.

Public Sector Private

and Government Sector

Clean
Non-
Industry Growth
governmental
Associations Stakeholder
Organisations
Ecosystem

Academia and
Financial
Research
Institutions
Institutions

Clean Growth Handbook Malaysia 47

 Section 4

Clean growth in the UK

This section covers the UK’s clean growth journey. A snapshot of the stakeholder
ecosystem is also provided.

48Growth Handbook Malaysia

Clean Clean Growth Handbook Malaysia 8
 The UK’s clean growth
4.1 journey
Climate Change Act 2008. Over the Earlier implementation plans. As part of
period between 1990 to 2021, the UK the UK government’s implementation
managed to cut emissions by 48% while plan, the Low Carbon Transition Plan
growing its economy by 65%. The UK and the Carbon Plan were published in
was one of the first countries to 2009 and 2011, respectively. These plans
recognise the economic and security focused on meeting commitments set
threats of climate change. In 2008, the out up to the fourth carbon budget
Climate Change Act was passed, which (2008 to 2027), with less emphasis on
outlined the UK’s commitment to economic growth considerations.
reducing GHG emissions by at least 80%
by 2050 when compared to 1990 levels. In 2017, the UK government unveiled the
This was amended to at least 100% by Clean Growth Strategy that set out
2050 in 2019 in line with the UK’s policies and proposals to meet the
commitment to net zero following the fourth (2023-2027) and fifth (2028-2032)
ratification of the Paris Agreement. carbon budgets. This was the first time
that the narrative around accelerating
The Climate Change Act sets decarbonisation while supporting
legally-binding ‘carbon budgets’ that economic growth was so strongly
caps the amount of GHGs emitted in the conveyed. The thematic areas covered
UK over a five-year period. The budgets in this strategy included scaling green
consider cost-effective pathways to finance, carbon pricing, improving
achieving the UK’s long-term climate residential and industry energy
change objectives, while also efficiency, shifting to low carbon
considering scientific knowledge, transport, phasing out unabated coal,
technology, economic and social smart power systems, enhancing the
circumstances. The Climate Change value of natural resources and low
Committee (CCC) advises on these carbon measures in the public sector. It
budgets at least 12 years in advance to also looked to reinstate a regular Clean
allow policy makers, businesses and Growth Inter-Ministerial Group
individuals enough time to prepare.1 responsible for monitoring the
implementation of the strategy and
The UK outperformed the first (2008 to driving ambitious clean growth policies.
2012) and second (2013-2017) carbon Following its publication, it was
budget. It is also on track to meet the acknowledged that based on the
third (2018-2022) carbon budget. This policies and proposals in the Clean
progress has been aided by the falling Growth Strategy, the country was not on
costs of many low carbon technologies track to meet the fourth (2023 to 2027)
such as offshore wind, energy efficient and fifth (2028- 2032) carbon budgets or
light bulbs and electric vehicle batteries. net zero by 2050; this would require the
This technological innovation has government to introduce more
resulted in the creation of new high challenging measures.
value jobs, industries and companies,
which constitute a new high growth and In November 2020, the Ten Point Plan for
high value low carbon sector of the UK a Green Industrial Revolution was
economy. published to highlight clean growth
opportunities that support the Covid-19

Figure 4.1:
The six carbon budgets that have been Budget Carbon budget level Reduction below 1990 levels Met?
put into law in the UK¹
1st carbon budget (2008 to 2012) 3,018 MtCO2e 25% Yes

2nd carbon budget (2013 to 2017) 2,782 MtCO2e 31% Yes

3rd carbon budget (2018 to 2022) 2,544 MtCO2e 37% by 2020 On track

4th carbon budget (2023 to 2027) 1,950 MtCO2e 51% by 2025 Off track

5th carbon budget (2028 to 2032) 1,725 MtCO2e 57% by 2030 Off track

6th carbon budget (2033 to 2037) 965 MtCO2e 78% by 2035 Off track

Net Zero Target At least 100% by 2050

Clean Growth Handbook Malaysia 49

 pandemic recovery. Among the ten
Figure 4.2: points were setting new renewable
Key events in the UK’s clean growth
energy targets, reducing emissions
journey
across all transport modes and scaling
green finance. The plan looked to
• Stern
mobilise GBP12 billion of government
Review on the
investment, and potentially three times
Economics of Climate
2006 Change is published that
as much from the private sector, as well
as the creation of up to 250,000 green
discusses the impact of
climate change on the jobs.
world economy
In December 2020, the government
• Climate Change Act announced an update to its NDC
comes into force which commitments. The UK committed to
commits the UK to 2008 reducing its emissions by at least 68%
by 2030 compared to 1990 levels, which
reduce its greenhouse
gas emissions by 80% by was higher than the original target of
2050, compared to 1990 57%.2 Based on this, the UK would need
levels to overachieve its fifth carbon budget
• Low and enhance associated
Carbon Transition
Plan: government implementation plans.
2009 publishes implementation
plan for carbon budgets The government then published the Net
1–3 (2008–2022) Zero Strategy in October 2021, which
sets out policies and proposals aimed at
meeting the fourth (2023- 2027), fifth
• The Carbon Plan: (2028-2032) and sixth (2033-2037)
government publishes carbon budgets. However, in July 2022
implementation plan for 2011 the UK High Court ruled that the
carbon budgets 1–4 strategy was inadequate to fulfill the
(2023–2027) government’s obligations in the Climate
Change Act.

• CleanGrowth Strategy: Independent review of the net zero

government publishes
2017 implementation plan for
target. The government commissioned
Chris Skidmore, a former UK Minister for
carbon budget 4 and 5
Energy, to conduct an independent
(2028–2032)
review of the net zero target in
September 2022. The review concluded
• UK revises Climate
that the need for further action is clear,
Change Act in line with
and that the UK is not on track to deliver
the ambitions of the Paris
Agreement i.e. to reduce
2019 on all its commitments.
its greenhouse gas
emissions by 100% by While the review confirmed that net zero
2050, compared to 1990 is the economic opportunity of the 21st
levels century, the UK must take the necessary
•UK publishes the Ten policy actions to make the most of net
Point Plan for a Green
2020 Industrial Revolution,
zero opportunities. Among the priority
missions identified include a focus on
mobilising GBP12 billion of developing grid and infrastructure
government investment
networks, encouraging investment and
by 2030
innovation by the private sector as well
• UK COP26 Presidency as empowering local governments to
Net Zero Strategy: deliver net zero.
government publishes 2021
implementation plan for Latest implementation plan. In
• Net Zero Review by Chris
carbon budget 4, 5 and 6 response to the Skidmore Review, the
Skidmore is published,
(2023–2037) government published the Powering Up
which concludes that
further action is needed Britain: Net Zero Growth Plan in March
for the UK to deliver on its 2023. This plan focuses on strengthening
the delivery of the UK’s commitments up
2023 climate commitments
to the sixth carbon budget by driving
• Powering Up Britain: The investment into key green industries like
Net Zero Growth Plan: offshore wind, CCUS, hydrogen and
government publishes nuclear. This plan is also the first annual
revised implementation progress update against the Net Zero
plan for carbon budget 4, Strategy.
5 and 6 (2023–2037)

50 Clean Growth Handbook Malaysia

UK Spotlight:
The Clean Growth
Strategy

Organisation profile: The Department economic opportunities presented

for Business, Energy & Industrial through innovation and new markets.
Strategy used to lead economy-wide While the Department for Business,
transformations in the UK. It was Energy & Industrial Strategy led the
responsible for business, industrial strategy, there was clear recognition of
strategy, science, research and the contribution of other government
innovation, energy and clean growth, departments to support economy-wide
and climate change for the UK. In 2017, emissions reduction.
the department published the UK’s
Clean Growth Strategy. Following the The strategy recognises that the
restructure of UK government transition to a low carbon economy
departments in February 2023, this should not only enable the country to
strategy is now under the purview of the reduce its annual GHG emissions but
newly formed Department for Energy also support sustainable economic
Security and Net Zero. growth over the next few decades. The
exports of low carbon goods and
Description: The Clean Growth Strategy services could be worth between GBP60
covers the fourth (2023-2027) and fifth billion and GBP170 billion by 2030.
(2028-2032) carbon budget, before the
UK updated its NDC in 2020 requiring an If the UK continues to capture the
update in its fifth carbon budget. The economic benefits from
strategy was also submitted to the decarbonisation, the low carbon
UNFCCC as the UK’s LT-LEDS. When the economy could grow at around 11% a
strategy was published, it shifted the year between 2015 and 2030, some four
focus from solely reducing the cost of times faster than the average growth
emissions reduction towards the rate for the UK economy overall.

Clean Growth Handbook Malaysia 51

 A selection of policies and proposals in the UK’s Clean Growth Strategy

Power

• Phase out the use of unabated coal to produce electricity by 2025

• Working with Ofgem and National Grid to create a more independent system operator to keep bills low through
greater competition, coordination and innovation across the system

CCUS

• Collaborate with global partners and invest up to GBP100 million in leading edge CCUS and industrial innovation to
drive down costs

• Work in partnership with industry to put the UK on a path to meet ambition of having the option of deploying CCUS
at scale in the UK, and to maximise its industrial opportunity

Industry

• Develop a package of measures to support businesses to improve their energy productivity, by at least 20% by
2030

• Establish an Industrial Energy Efficiency scheme to help large companies install measures to cut their energy use
and bills

Transport

• End the sale of new conventional petrol and diesel cars and vans by 2040

• Investing an additional GBP80 million, alongside GBP15 million from Highways England, to support charging
infrastructure deployment

• Providing GBP100 million to support retrofitting and new low emission buses in England and Wales

Green finance

• Develop a set of voluntary green and sustainable finance management standards

• Providing up to GBP20 million to support a new clean technology early-stage investment fund

52 Clean Growth Handbook Malaysia

UK Spotlight:
Net Zero Strategy:
Build Back Greener

Organisation profile: The Department Consequently, the UK government will

for Business, Energy & Industrial take a systems approach. Key elements
Strategy used to lead economy-wide will include:
transformations in the UK. It was
responsible for business, industrial • Establishing forums for delivering
strategy, science, research and shared net zero goals and identifying
innovation, energy and clean growth, key issues through cross-system
and climate change for the UK. In 2021, governance structures
the department published the UK’s Net
Zero Strategy. Following the restructure • Testing and determining feasible net
of UK government departments in zero scenarios with whole energy
February 2023, this strategy is now systems modelling and supporting
under the purview of the newly formed work to identify high leverage,
Department for Energy Security and Net systemic actions such as CCUS
Zero.
The strategy outlines three 2050
Description: The Net Zero Strategy scenarios: high electrification, high
covers the fourth (2023-2027), fifth resource and high innovation. These
(2028-2032) and sixth (2033-2037) scenarios are intended to help the UK
carbon budget. It reflects the UK’s explore possible energy and technology
revised commitment of achieving net solutions in the run up to 2050,
zero by 2050 as well as reducing understand important system-wide
emissions by at least 68% by 2030. This interactions and identify features
strategy details how the UK government common to all scenarios. The strategy
plans to reduce emissions from each aims to plot a path that ensures the
sector of the economy and abating actions required in the short-term are
emissions using GHG removals and not delayed, while maintaining some
CCUS. level of flexibility for the future. This
would provide certainty to drive forward
The strategy acknowledges that investment and change, but also allow
achieving net zero requires action by the market to respond to new
multiple parties across the public and opportunities and challenges as they
private sectors, delivery at pace and arise over time.
managing large uncertainties.
Clean Growth Handbook Malaysia 53
 A selection of policies and proposals in the UK’s Net Zero Strategy

Power

• By 2035 the UK will be powered entirely by clean electricity

• 40GW of offshore wind by 2030, with more onshore, solar, and other renewables

Fuel supply and hydrogen

• Deliver 5GW of hydrogen production capacity by 2030

• GBP140 million to establish Industrial Decarbonisation and Hydrogen Revenue Support scheme to fund new
hydrogen and industrial carbon capture business models

Industry

• Deliver four CCUS clusters, capturing 20-30 MtCO2 across the economy per year by 2030

Transport

• GBP620 million for zero emission vehicle grants and EV Infrastructure

• GBP2 billion investment to help enable half of journeys in towns and cities to be cycled or walked by 2030

• GBP3 billion to create integrated bus networks, more frequent services and bus lanes to speed journeys

Greenhouse gas removals

• Deploy at least 5 MtCO2/year of engineered greenhouse gas removals by 2030

• Delivering GBP100 million of investment in greenhouse gas removal innovation to enable further deployment of
greenhouse gas removals

54 Clean Growth Handbook Malaysia

UK Spotlight:
Powering Up Britain:
The Net Zero Growth Plan

Organisation profile: The Department The Net Zero Growth Plan identifies a list
for Energy Security and Net Zero is of sectors and enablers that are critical
responsible for delivering security of to the UK’s long-term decarbonisation
energy supply, ensuring properly trajectory. Among the sectors include
functioning energy markets and power, fuel supply and hydrogen,
encouraging greater energy efficiency. industry, transport and greenhouse gas
It is also overseeing efforts in seizing the removals. The enablers include
opportunities of net zero to lead the innovation, green investment, local net
world in new green industries. In 2023, zero, international leadership and
the department published the Powering collaboration.
Up Britain policy paper, comprising the
Energy Security Plan and the Net Zero While there is a clear focus on clean
Growth Plan. Together, both plans set energy supply and energy efficiency, the
out the UK’s ambitious policies to deliver plan also acknowledges the importance
energy security and increased of supporting the rest of the economy
international economic competitiveness, through the transition. This includes
while delivering on net zero. plans to decarbonise transport by
requiring all newly sold vehicles to be
Description: The Net Zero Growth Plan zero emission by 2040 and a push for
covers the fourth (2023-2027), fifth sustainable aviation fuel.
(2028-2032) and sixth (2033-2037)
carbon budget. It is the UK Since this plan is part of the
government’s response to the Skidmore government’s efforts to strengthen the
Review of the Net Zero Strategy, which delivery of carbon budgets, several of
confirmed that existing plans would not the actions outlined look to provide
allow the UK to deliver on its climate greater clarity on how the increased
commitments. It also serves as the first ambitions of the country can be met
annual progress update against the Net through publishing strategies, such as
Zero Strategy. the hydrogen delivery roadmap and
biomass strategy.

Clean Growth Handbook Malaysia 55

 A selection of key actions in the UK’s Net Zero Growth Plan

Power

• Establish a solar government/industry taskforce and publish a solar roadmap to achieve 70GW of solar by 2035

• Set up Great British Nuclear to lead delivery of the new nuclear programme

Fuel supply and hydrogen

• Publish a delivery roadmap this year to show how hydrogen production can be scaled up over the coming decade

• Publish the first revision of the UK Low Carbon Hydrogen Standard

• Further move from industry towards target of ending routine flaring and venting by 2030

Industry

• Launch a call for evidence on industrial electrification

• Publish the Biomass Strategy

Transport

• Develop the rail decarbonisation programme with the Great British Railways Transition Team

• Publish sector-wide Low Carbon Fuels Strategy

• Develop long term funding plans for cycling and walking infrastructure and behaviour change programmes up to
2025

Natural resources

• Publish a roadmap for increasing the use of timber in construction

• Support Water UK's Net Zero Route Map to deliver a net zero water supply

56 Clean Growth Handbook Malaysia

 Investments in innovation. Overall, the In 2021, the government established the
UK has put a strong emphasis on Net Zero Innovation Portfolio (NZIP), a
nurturing innovation in low carbon GBP1 billion fund as part of the Ten Point
technologies, processes and systems to Plan for a Green Industrial Revolution.
bring down the cost of clean The NZIP aims to decrease the cost of
technologies, not just for the UK but for decarbonisation and among the priority
other countries too. Between 2015 and areas for the fund include energy
2021, the government had invested storage, bioenergy, hydrogen as well as
GBP2.5 billion in low carbon innovation. advanced carbon capture, usage and
storage.3

Figure 4.3:
Allocated budget to low carbon
innovation in the UK, 2015-2021⁴
Government has significantly increased
its investment in low carbon innovation

£2.5
billion
allocated
2015-2021

The Clean Growth Strategy sets out, for the first time,
where Goverment funding is targeted

Transport 33%

Power 25%

Cross-sector 15%

£2.5
billion Smart Systems 10%
Homes 7%
Business & Industry 6%
Land Use & Waste 4%

Clean Growth Handbook Malaysia 57

 The UK at COP26. The UK took on the International financial support. Since
presidency for COP26 in 2021, which saw 2018, the UK has committed GBP72
nearly 200 countries coming together. million in funding for its flagship UK
Two of the main outcomes of COP26 Partnering for Accelerated Climate
were the Glasgow Climate Pact and Transitions (UK PACT) programme under
finalising the Paris Rulebook that the International Climate Finance
provides guidelines on how the Paris portfolio. UK PACT works with partner
Agreement can be delivered. The countries, supporting them to
Glasgow Climate Pact included: accelerate their clean growth
transitions.8 Malaysia was one of the
• 153 new or updated NDCs beneficiaries as the programme backed
five innovative climate projects valued
• Agreement from 190 countries to at GBP2.6 million to promote low carbon
phase down coal power and nature preservation initiatives.9
Other countries to receive support under
• Commitment by 137 world leaders to this programme include China,
halt or reverse forest loss and land Colombia, Indonesia, Kenya, Mexico and
degradation by 2030 South Africa.

• Speeding up the switch to EVs by over In July 2022, the UK signed a MOU with
35 countries, 6 major carmakers, 43 the Asian Development Bank to
cities, states and regions, 28 fleet contribute GBP107 million towards the
owners and 15 financial institutions ASEAN Catalytic Green Finance Facility.
and investors This fund will be used to accelerate a
pipeline of low carbon and
• Commitment to reduce global climate-resilient infrastructure projects
methane emissions by 30% by 2030 in ASEAN.10
by over 100 countries
As described in Section 2.2, a Just
• Over USD350 million was committed Energy Transition Partnership (JETP) has
to the UNFCCC Adaptation Fund been underway since COP26 to
accelerate the decarbonisation of
• Over USD600 million was pledged to emerging economies reliant on coal. The
the Least Developed Countries Fund UK is a member of the International
Partners Group who are co-formulating
• Commitment from developed and co-funding the just energy transition
countries to raise USD100 billion every investment plans in three countries to
year in climate finance5 date. The UK’s support in each of the
three countries over the next three to
The UK at COP27. In the run up to five years is outlined below:
COP27, the UK announced that it will
triple adaptation funding for developing • USD1.8 billion for the South Africa JETP11
countries from GBP500 million in 2019 to
GBP1.5 billion in 2025. At COP27, the UK • Supporting the delivery of the
committed to supporting several Indonesia JETP, including through a
projects including: USD1 billion World Bank guarantee12

• The scope of support for Vietnam is

• GBP65.5 million for the Clean Energy
still under discussion but will total
Innovation Facility, which provides
USD15.5 billion amongst public and
grants to researchers and scientists in
private sector partners13
developing countries to accelerate
the development of clean technology6

• New and expanded solar and

geothermal power plants in Kenya
backed by British International
Investment7

58 Clean Growth Handbook Malaysia

 The clean growth ecosystem
4.2 in the UK
A non-exhaustive list of organisations across the six ecosystem stakeholder
categories in the UK is provided below.

Public Sector Private

and Government Sector

Clean
Non-
Industry Growth
governmental
Associations Stakeholder
Organisations
Ecosystem

Academia and
Financial
Research
Institutions
Institutions

Clean Growth Handbook Malaysia 59

 Section 5

Sector: Power

The power sector covers utility scale power generation, transmission and distribution.
In this section, a power sector market overview is provided for Malaysia covering key
policies, governance, trends shaping the sector and a summary of current initiatives
in different subsectors. For each subsector, UK-Malaysia collaboration opportunities
have been identified that leverage success stories from the UK. A selection of
upcoming power projects in Malaysia are also provided that UK companies could
consider supporting.

60 Clean Growth Handbook Malaysia

 Power sector highlights
5.1 and ecosystem
• The Malaysia Renewable Energy • There are a growing number of utility
Roadmap lays out a target to scale solar developments, including
increase the share of renewable floating solar, under the LSS scheme.
electricity from 8% in 2018 to 40% in The main feedstock for bioenergy is
2035. The roadmap has identified waste from the palm oil industry; the
solar, hydro and bioenergy as economic case for other biomass
renewables with high potential. waste feedstocks is proving to be
Energy storage, geothermal and wind challenging. Small hydropower is also
will be considered for adoption after growing to serve rural communities
2025. that might not be connected to the
grid yet. The rise in renewable energy
• There are several points of inertia in will require battery storage. A pilot is
the energy transition including a being considered in Peninsular
thriving oil and gas industry, fossil fuel Malaysia with full implementation
electricity subsidies and commercial planned 2030-2034.
viability of closing young coal plants.
• The number of hydrogen and CCUS
• There is a strong energy security projects are rising, especially in
argument to using renewables to Sarawak, where there is an oil and gas
provide affordable, domestic industry cluster and offshore carbon
electricity, over utilising the country’s storage capacity.
diminishing oil and gas resources and
ultimately become reliant on • Malaysia needs to invest RM1.6 trillion
international imports. in renewables to meet its 2050
climate goals. There are many
• Feed-in Tariffs are in place for opportunities for foreign companies,
biomass (combustion, gasification), although foreign equity ownership
biogas (anerobic digestion), small restrictions still exist as the market is
hydropower and solar. not yet fully liberalised.

Malaysia's clean growth stakeholder

ecosystem in power

Public Sector Private

and Government Sector

Clean
Industry
Growth Non-
governmental
Associations Stakeholder Organisations
Ecosystem

Academia and
Financial
Research
Institutions
Institutions

Clean Growth Handbook Malaysia 61

 Power sector policy and plans
5.2
National Energy Policy 2022-2040. The The roadmap has identified solar, hydro
UK Success Story: Integrating energy National Energy Policy (DTN) aims to and bioenergy as renewables with high
and climate policy strengthen access to affordable, reliable potential as they can take advantage of
• The Energy Act 2013 and Energy and sustainable energy for all in line with Malaysia’s geographical location and
White Paper: Powering our Net the SPV 2030. The DTN includes the Low readily available resources.3, 4 Actions
Zero Future both connect the Carbon Nation Aspiration 2040 where post 2025 including conducting
plans for the power sector to the the government will be providing feasibility studies on geothermal,
targets set out in the Climate incentives to attract investments in low onshore and offshore wind, as well as
Change Act 2008. With this carbon technologies. Identified high rolling out battery storage and
foundation, electricity generation potential growth areas include hydrogen. To date, wind power has not
from renewables has increased renewable energy, energy storage, low gained traction because it is not
from less than 20% in 2010 to carbon mobility, and hydrogen.1 currently technically or commercially
38.2% in 2022, comprising wind feasible in Malaysia. When it comes to
(26.8%), biomass (5.2%) solar Renewable Energy Roadmap 2021. The nuclear, it is not yet included in future
(4.4%) and hydropower (1.8%) as energy mix in Malaysia to date has been plans, but the roadmap acknowledges
the latest statistics by the dominated by gas, oil and coal, which that building resource capabilities on
National Grid indicate. accounted for 92% of total energy nuclear science and technology for
sources in 2018.2 Renewable energy power generation form part of the
generation has been growing over the ASEAN Plan of Action for Energy
years, accounting for 2% in 2010 to 8% Cooperation 2016-2025.
in 2018. The energy sector has been
identified as a key catalyst for low Report on Peninsular Malaysia
carbon development. The Malaysia Generation Development Plan
Renewable Energy Roadmap (MyRER) 2021-2039. This plan is reviewed
lays out a target to increase the share of annually at the start of each year. The
renewable energy to 40% in 2035 – latest publication covers an 18-year
noting renewable energy targets across period from 2021 to 2039. The version
Southeast Asia typically range between published the year before in 2020 only
20% and 50% by 2030 or 2040. covered 10 years. The objective of the
report is to provide projections of
electricity supply and demand, and to
set out how the energy trilemma will be
addressed.5 There is no equivalent
document for Sabah and Sarawak.

Figure 5.1: 2018 2040

Energy mix targets in Malaysia, 20401
60%

41% 39%
40%
30% 27%
22%
17%
20%
4% 6% 9%
0% 1% 4%
0%
l
rgy lar er um as oa
ne So ow o le lG C
oe rop tr ur
a
Bi yd /P
e
at
H il N
O

62 Clean Growth Handbook Malaysia

 National Energy Efficiency Action Plan manufacturing, transportation,
2016-2025. The National Energy buildings, waste and water.7 Initiatives
Efficiency Action Plan (NEEAP) aims to recommended under energy cover both
promote energy efficiency in buildings, electricity generation and energy
industry and appliances by ensuring the efficiency such as having an energy
productive use of energy. The plan is planning framework, reinvigorating
guided by four main thrusts, which demand side management and
include strengthening institutional adopting smart grid technology.
frameworks, capacity development and
training, establishing sustainable Upcoming Energy Efficiency and
funding mechanisms as well as Conservation Act. The government is
promoting private sector investment in preparing to table a bill on energy
energy efficiency initiatives. The efficiency and conservation for more
successful implementation of the NEEAP comprehensive and effective regulation.
is expected to save 52,233 GWh of As of 1 March 2023, the bill is still in
electricity over the plan period against a research stages.8 Based on analysis by
business-as-usual scenario. As of the Energy Commission, the
October 2021, this action plan has implementation of the proposed act will
managed to achieve a cumulative be able to save a total of 258.4 million
energy savings of 4.3%, exceeding its tonnes of carbon emissions by 2035 and
initial target of 3.9%.6 The NEEAP will be create more than 1,500 jobs.9 This act is
revised by 2024, which will cover the expected to supplement the NEEAP
period 2025 to 2035, to further promote rather than superseding it.
energy efficiency nationwide.
Upcoming Energy Transition Roadmap.
Green Technology Master Plan In March 2023, MOEc shared that within
2017-2030. The Green Technology three months it would publish the Energy
Master Plan (GTMP) provides a Transition Roadmap. The Roadmap
framework for mainstreaming green would look to translate the DTN into
technology in six key sectors: energy, energy transition projects.10

Clean Growth Handbook Malaysia 63

 Energy sector governance
5.3
Governing bodies. In Malaysia, the main TNB owns and operates most of the
government ministries and agencies power generation, transmission and
overseeing the power sector include the distribution infrastructure in Peninsular
Ministry of Natural Resources, Malaysia. While TNB is the largest
Environment and Climate Change electricity generator, there are also
(MNRECC), the Sustainable Energy other Independent Power Producers
Development Authority (SEDA), the (IPPs) who sell electricity to TNB. These
Energy Commission and Sarawak's IPPs began operations in the 1990s when
Electrical Inspectorate Unit. The Malaysia faced energy security
MNRECC is in charge of policy challenges and include companies such
development and law enforcement as YTL Power, Genting Sanyen Power
related to energy as well as natural and Malakoff.15 Small-scale providers
resources, climate change and such as Nur Power and Malakoff Utilities
environmental pollution.11 SEDA is a own and operate some transmission and
statutory body that manages the distribution assets in discrete locations.
implementation of the Feed-in Tariff (FiT)
mechanism under the Renewable Energy Sabah Electricity (SESB) is 80% owned
Act 2011, covering solar, small by TNB and 20% owned by Sabah State
hydropower, biomass and biogas.12 It Government. In 2019, the federal
also advises on, promotes and government committed to return its
implements national policy objectives ownership to Sabah State Government,
on energy management and renewable which is still in progress.16, 17, 18 Sarawak
energy. The Energy Commission is the Energy (SEB) is a wholly Sarawak
regulatory body for electricity supply in Government owned company.19, 20 Both
Peninsular Malaysia and Sabah, while SESB and SEB are vertically integrated
the State Electrical Inspectorate Unit is utility providers involved in generation,
the regulator in Sarawak. Sabah will transmission and distribution services.
soon have its own energy commission.13

Electricity generation, transmission

and distribution. Tenaga Nasional (TNB)
is the largest electricity utility company
in Malaysia. As of December 2021, TNB
was 69% owned by government
agencies, 19% owned by local
corporations and 12% owned by foreign
shareholders.14

64 Clean Growth Handbook Malaysia

 Regulator
Figure 5.2:
Electricity governance in Peninsular ENERGY COMMISSION
Malaysia21*

Teknologi
Genting Port Dickson TNB Jana Malakoff YTL Powertek
Tenaga Perlis
Sanyen Power Manjung Portfolio Portfolio Portfolio
Cons

IPPs
TNB TNB
NUR Jimah Generation Hidro
Portfolio Portfolio

TNB Planning Division

TNB Transmission Division

Transition
GRID SYSTEM SYSTEM PLANNING
GRID OWNER OPERATOR (GSO)
Asset Development, Operation & Operation Planning, Real-time SINGLE BUYER
Maintenace of the Transmission Scheduling & Dispatch, and
System Real-time Grid Operation Day ahead Generation Schedulling,
Commercial Settlements

Distribution
Distribution

Other Distribution Companies TNB Distribution Division

Customers
Regulator

Figure 5.3:
Electricity governance in Sabah* ENERGY COMMISSION
(soon to have its own energy commission)
Sepanggar Bay
Power Corp.
IPPs

Serudong
Power
Transition
Distribution
Regulator

Figure 5.4:
Electricity governance in Sarawak* STATE ELECTRICAL INSPECTORATE
IPPs

SEB Power Gobel Industry

Transition

Syarikat SESCO Berhad

Distribution

Syarikat SESCO Berhad

*The IPPs listed are not exhaustive

Clean Growth Handbook Malaysia 65

 Trends shaping the power
5.4 sector
Malaysia is still in the energy transition Coal Power Compact with countries like
process. It looks to address the energy Sri Lanka, Chile, Denmark, France,
trilemma, thus coal and natural gas Montenegro and the UK, Malaysia has
power plants will continue playing a role committed to goal separately noting
for the coming decades. In an Energy most of Malaysia’s coal is currently
Transition Townhall with the Minister of imported from Indonesia and Australia.25
Natural Resources, Environment and While the government has plans to retire
Climate Change in March 2023, it was natural gas-fired capacity, S&P Global
shared that some of Malaysia’s coal has indicated that retiring coal power
powered plants are relatively young and plant capacity would result in a 60%
therefore decommissioning them now is increase in natural gas demand in
not feasible. Furthermore, there were Peninsular Malaysia, assuming
challenges discussed on recouping the renewable capacity targets are
costs associated with adopting new capped.26
technologies at existing power plants to
reduce emissions. There may be Natural gas market. The Russia-Ukraine
opportunities to consider new business war is transforming Malaysia’s natural
models here. gas market with increasing prices and
expected increases in natural gas
Oil and gas exporter. Malaysia is in the demand in the future.27 For Malaysia, it
global top 10 producers and exporters of will be important that natural gas
both oil and natural gas, which has remains framed as a transition fuel in
contributed significantly to the global green taxonomies. Natural gas
country’s economic growth. Petronas, a exports currently make up 4% of
government-owned oil and gas Malaysia's exports and can support
corporation, hold exclusive ownership importing countries before they leapfrog
rights to all oil and natural gas to renewables.
exploration and production projects in
Malaysia. In 2021, Petronas’ financial Electricity subsidy. In Malaysia, both a
contributions to public revenue direct (subsidy to all consumers in
comprised RM48.2 billion.22 To put this Malaysia) and indirect electricity
number into context, it accounted for subsidy (regulated natural gas price that
15% of the Federal Government Budget Petronas can sell to TNB, which is lower
in 2022.23 This is a sizable contribution to than the market price) exists with the
the economy and perhaps a reason for aim to keep electricity affordable for all.
the slower low carbon transition in In December 2022, Prime Minister Anwar
Malaysia. Although emissions from oil Ibrahim announced a review of
and gas production fall under the Malaysia's subsidy programme to
manufacturing sector, the influence of recoup the increase in coal price, noting
Petronas in the energy transition is worth “10% or one million of [energy]
noting. It is the first oil and gas company consumers are conglomerates, which
in Southeast Asia to announce a net enjoy more than 50% in electricity
zero carbon by 2050 commitment. To subsidies”.28 From 2023, domestic users
support this, Petronas established a new will continue to receive power tariff
clean energy solution company, Gentari, rebates. Farmers, animal breeders and
in June 2022. This is a market changing low voltage non-domestic users will not
step for the company as an organisation see an increase in their current
with the greatest financial capacity to surcharge. Medium voltage and high
invest in low carbon technologies and voltage users will see an increase in their
projects in Malaysia. surcharge.29 These changes will increase
the cost and the government will spend
No new coal plants. The Malaysian RM14.91 billion this year instead of
government has committed plans to RM10.76 billion.30 A reduction or removal
retire around 17GW of natural gas-fired of this subsidy is required to increase the
and coal-fired capacity by 2039.24 competitiveness between renewable
Although not a signatory of the No New and non-renewable sources.

66 Clean Growth Handbook Malaysia

 Market liberalisation. The electricity As a result, there are likely to be greater
market in Malaysia is not yet fully opportunities for foreign company
liberalised with the government’s participation in the Malaysian power
involvement in TNB, SESB, SEB and market over the next decade.
Petronas, which can make it challenging
for new players to enter the market. In In May 2023, the Economy Ministry
2019, the Cabinet approved a 10-year together with the Natural Resources,
masterplan to reform the domestic Environment and Climate Change
power market31 including: Ministry announced a new renewable
energy target of 70% generation
• Allowing generators to source their
own fuel to optimise costs capacity by 2050 and an end to the ban
on cross-border renewable energy
trade. Local renewable energy
• Moving from a power purchase
agreement regime to a capacity and companies are expected to benefit
energy market through cross-border exports making
investments in renewable energy more
competitive.
• Establishing a third-party access
framework and network charges to
use the infrastructure

• Facilitating green energy production

Figure 5.5:
Renewable electricity capacity
targets32 17,996 MW
MW
RE Share 2035 40%
20,000 New Capacity Target @ 2035
17,996 MW-40% RE Share
New Capacity Target @ 2025 Biogas Biomass Solar
12,916 MW-31% RE Share 406MW 998 MW 7,280 MW
15,000 Large Hydro Solar penetration
8,062 MW 2035
Small Hydro Geothermal 30% of peak
BAU @ 2035 30 MW demand
13,746 MW-32% RE Share 1,219 MW
10,000 BAU @ 2025
11,742 MW-29% RE Share
Baseline @ 2020
8,450 MW-23% RE Share
5,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

New Capacity Target

BAU

Figure 5.6:
Summary of renewable electricity
resource potential in Malaysia32
Peninsular
Malaysia
Total Malaysia

Solar PV 269.0 GW
Large Hydro 13.6 GW
Bioenergy 3.6 GW 99.4 GW
137.5 GW Small Hydro 2.5 GW Sabah 0.6
Geothermal 0.2 GW 0.5 GW
1.7 GW
162 GW
0.8 67
MW MW
GW

2.2 GW 3.1 GW

32.1 GW

0.2
0.6 GW
GW
Sarawak
10.0 GW

Solar PV (includes ground Bioenergy (includes agriculture, Small hydro (system Large hydri (system Geothermal
mounted, rooftop and animal and municipal & size up to 100 MW) size > 100 MW)
floating installation) hazardous waste)

Clean Growth Handbook Malaysia 67

 Malaysia Project Spotlight:
Delivering Gentari’s
business plan

Organisation profile: Gentari is a clean storage, among others. To date, Gentari

energy company owned by Petronas has 1.1 GWp of clean energy capacity in
that provides solutions to accelerate the operations and under development
adoption and commercialisation of globally. Some examples include
clean energy. The company plans to installations of 7.4 MWp from solar
develop a suite of solutions for rooftop at Universiti Teknologi Petronas
commercial and industrial customers and solar rooftop at 60 Petronas
across three main pillars including: stations. For hydrogen, Gentari aspires
renewable energy, hydrogen and green to produce up to 1.2 MM tonnes per year
mobility. Gentari aspires to differentiate of clean hydrogen by 2030 for export
itself with an integrated, one-stop shop and domestic markets. There are
model. For example, the clients' needs already two notable developments on
could be fulfilled by packaging this front. In October 2022, the company
cross-value chain clean energy solutions signed an MOU with IHI Japan to
together. explore the feasibility of producing
green ammonia derived from
Location: Malaysia renewables in Peninsular Malaysia. In
November 2022, the company
Timeframe: The company launched in commenced a joint feasibility study to
September 2022 explore the development of an
electrolyser and green ammonia plant.
Description: Gentari has set ambitious For electric vehicles, the company aims
targets for its business across its three to capture a 10% market share by
main pillars. Since its launch, the delivering around 25,000 public
company has been pursuing potential charging points across key markets in
international and local partners to Asia by 2030. The company has already
collaborate with to achieve its goals. For installed more than 190 charging points
renewable energy, Gentari aims to build and delivered 250 electric two-wheeler
a total energy capacity of 30-40 GW in and three-wheeler fleet in Malaysia and
key markets by 2030. This includes India. The company continues to look for
utility-scale projects across solar, partners to help deliver against its three
onshore and offshore wind, battery pillars.

68 Clean Growth Handbook Malaysia

Section 5.5

Subsector market
overviews
This section provides market overviews of six key energy subsectors. For each
subsector, UK-Malaysia collaboration opportunities and a selection of upcoming
projects in Malaysia have been identified.

Clean Growth Handbook Malaysia 69

 Solar photovoltaics
5.5.1
What can the UK offer? Government programmes. Malaysia has Large scale solar. As of 2021, four
seen significant growth in solar rounds of LSS competitive bidding had
• Finance including sustainable photovoltaic (PV) projects, with been organised by the Energy
finance ground-mounted and rooftop Commission (LSS1, LSS2, L333, LSS
installations being widely developed MEnTARI). This equates to over 2GW of
• Feasibility studies and project under various government schemes. awarded capacity. However, it is worth
development These include the Large Scale Solar (LSS) noting that not all quotas awarded were
competitive bidding programme at successfully developed. There were
• System design utility-scale and the Net Energy instances where successful bidders were
Metering (NEM) scheme, not able to reach financial close for
• Installation and commissioning Self-Consumption (SELCO) scheme and various reasons, with land issues being
the Corporate Green Power Programme one of the most prominent. Winning
• Maintenance and repair (CGPP) programme at domestic, bidders include TNB Renewables,
commercial and industrial scale. The Mudajaya Corporation, Gading
CGPP is covered further in Section 8.5.2. Kencana, Leader Energy, UiTM Property,
Cypark, Redsol (where Scatec is a
Norwegian co-shareholder), Coara Solar
(also with Scatec), ib vogt Malaysia
(some German ownership) and Engie
Services Malaysia (some French
ownership). LSS5 is on the cards but a
launch date has not been set yet.

Figure 5.7: Region Capacity awarded (MW) Operational capacity (MW) In progress (MW) Percentage

LSS progress by region, Q2 202233 Perlis 83.996 33.996 50 40%

Kedah 491.53 345.87 145.66 70%
P.Pinang 96 21 75 22%
Perak 542.18 138.88 403.3 26%

Kelantan 90 0 90 0%
Perlis Terengganu 323.99 106.99 217 33%

Pahang 309.916 209.916 100 68%

Kedah Selangor 218.97 66.98 151.99 31%

N. Sembilan 61 61 0 100%
Melaka 56.8 56.8 0 100%

P.Pinang Johor 68.99 68.99 0 100%

Kelantan Sabah 113.9 50 63.9 44%

Terengganu 2457.272 1160.422 1296.85 47%

Perak

Pahang

Selangor
Sabah
N. Sembilan

Melaka Johor

70 Clean Growth Handbook Malaysia

 Floating solar. Floating solar PV is also has a hybrid solar and wind power
gaining traction due to land restrictions. system installed on its fixed offshore
Peninsular Malaysia and Sarawak wellhead platform in the Timi field in
present the greatest opportunity for Sarawak.37 This is the first wind power
floating solar from the reservoir dams installation in Malaysia. Wind power
available in these parts of Malaysia. TNB alone has been slow to gain traction
Power Generation has implemented a because it is not currently technically or
floating solar on its ash pool at its commercially feasible in Malaysia.
Manjung Power Plant and TNB The government is also considering a
Renewables is currently undertaking “solar park” project to centralise assets
studies on potential floating solar in an area with high solar irradiance. The
projects.34 In April 2022, Shizen Energy – park would seek to share grid and
a Japanese engineering, procurement related infrastructure to improve
and construction contractor – efficiency.38
announced that its Malaysian unit had
joined the Nusa Baiduri Consortium, Solar PV manufacturing hub. Although
which is planning to build a 150 MW the country's solar power capacity is
floating solar power plant at the Durian comparatively lower than other
Tunggal Dam in Melaka. In July 2022, countries, it was the world's second
Trina Solar secured a 50MW floating largest exporter of solar panels in 2021
solar PV project in Sarawak through an after China. China accounted for 40.6%
auction held by SEB. This project will be of the global share while Malaysia
built on the surface of the reservoir at accounted for 16.7%.39 There are a
the Batang Ai Hydroelectric Plant.35 growing number of manufacturers
Looking forward, the Malaysian based in Malaysia including Hanwa Q
government is expected to ramp up Cells, Jinko Solar, Sun Everywhere, First
solar PV installations. Solar, Ditrolic Energy and Hasilwan.40
The main export destinations are the
Up and coming. The installation of United States, Vietnam and India.41 Most
renewables on oil and gas platforms is solar developers in Malaysia is still using
gaining traction. Shell’s wellhead Chinese manufactured solar PV panels
platform at the Gorek field off Sarawak as they are more affordable.
is fully solar-powered.36 The company

Figure 5.8:
Floating solar PV resource potential
and water bodies32

Perlis Kedah Kelantan Terengganu Pahang

Resource potential [MW]: 75 Resource potential [MW]: 535 Resource potential [MW]: 47 Resource potential [MW]: 2,075 Resource potential [MW]: 253
Total water surface [km2]: 13.3 Total water surface [km2]: 95.2 Total water surface [km2]: 8.3 Total water surface [km2]: 369.0 Total water surface [km2]: 45.0
Usable water surface [km2]: 1.5 Usable water surface [km2]: 10.4 Usable water surface [km2]: 0.9 Usable water surface [km2]: 40.2 Usable water surface [km2]: 4.9

Pulau Pinang
Sabah
Resource potential [MW]: 31 Perak
Resource potential [MW]: 10
Total water surface [km2]: 5.6 Resource potential [MW]: 1,592
Total water surface [km2]: 1.8
Usable water surface [km2]: 0.6 Total water surface [km2]: 283.1
Usable water surface [km2]: 0.2
Usable water surface [km ]: 30.9
2

Selangor Negeri Sembilan

Resource potential [MW]: 138
Resource potential [MW]: 63
Total water surface [km ]: 24.6
2
Total water surface [km2]: 11.1
Usable water surface [km ]: 2.7
2
Usable water surface [km2]: 1.2
W.P. Labuan
W.P. Kuala Lumpur Johor Resource potential [MW]: 7

Resource potential [MW]: 0 Resource potential [MW]: 319 Total water surface [km2]: 1.2

Total water surface [km2]: 0.0 Total water surface [km2]: 56.7 Usable water surface [km2]: 0.1

Usable water surface [km2]: 0.0 Usable water surface [km2]: 6.2
Sarawak
Melaka
W.P. Putrajaya Resource potential [MW]: 11,343
Resource potential [MW]: 66
Resource potential [MW]: 0 Total water surface [km2]: 2,017.5
Total water surface [km2]: 11.8
Total water surface [km2]: 0.0 Usable water surface [km2]: 219.9
Usable water surface [km2]: 1.3
Usable water surface [km2]: 0.0

Clean Growth Handbook Malaysia 71

 Malaysia Project Spotlight:
Corporate Green Power
Programme

Organisation profile: The Energy Description: The CGPP was initially

Commission of Malaysia, known locally launched for solar power projects only,
as Suruhanjaya Tenaga, is responsible but the Energy Commission announced
for regulating the electricity and piped in March 2023 that it applies to non-solar
gas supply industries in Peninsular renewable power projects as well.
Malaysia and Sabah (for now). The Projects amounting to a combined
Energy Commission strives to develop a capacity of 800 MW are eligible. A guide
reliable supply of electricity and gas at providing more information for interested
reasonable cost. In November 2022, the parties in solar power projects is
Energy Commission launched the expected to be published by April 2023.43
Corporate Green Power Programme Companies in the manufacturing and
(CGPP) to allow eligible corporate services sectors and eligible to apply.
customers to virtually purchase solar One of the key benefits is that it allows
power from solar developers through companies to procure renewable energy
Virtual Power Purchase Agreements. The without having to install solar panels
launch of the CGPP is off the back of the themselves or be located near solar
National Energy Policy 2022-2040.42 power storage systems. The CGPP
provides a good opportunity for
Location: Malaysia companies, especially large energy
consumers, to accelerate their
Timeframe: Renewable energy projects renewable energy deployment efforts. So
under the CGPP are scheduled to be far, the demand has surpassed the quota
commissioned by 2025 at the latest. The available for allocation, signaling strong
deadline for interested parties to apply market demand for future quotas.
for the programme is December 2023.

72 Clean Growth Handbook Malaysia

UK Spotlight:
Hive Energy

Organisation profile: Hive Energy is a Key projects include:

global financier, developer and operator • Cleve Hill Solar Park, UK: Hive was
of renewable energy projects and the first clean energy developer to
investor in circular economy. Hive create a large-scale solar subsidy
Energy was founded in 2011 to supply project. The project is classified as a
green energy solutions to the UK. Since nationally significant infrastructure
then, the company has been expanding project. The park, which was granted
globally. Hive’s largest portfolio is in development approval in May 2020,
solar photovoltaics with around 50 sites will provide enough affordable and
across the UK, Europe, Africa, New clean electricity to power over 91,000
Zealand, Canada and Latin America. homes. The project will comprise of an
array of solar photovoltaic modules,
Description of services: energy storage and associated
• Solar photovoltaics development infrastructure. Hive
collaborated with key stakeholders
• Energy storage
and local communities throughout the
• Green hydrogen development process. This includes
• Wind developing a biodiversity and
• Green ammonia landscape management plan that will
deliver a 65% net gain in biodiversity.
• Low carbon aggregates
• Biochar and activated carbon • Valdesolar Park, Spain: At 264 MW,
• Land restoration the site provides renewable electricity
to the equivalent of 153,000 homes. It
is the largest solar energy project in
Spain spanning about 616 hectares,
and will comprise of 648,000
mono-crystalline panels, on
single-axis tracking systems. At full
power, Valdesolar will provide
electricity to some 140,000 homes,
saving over 270,000 tons of carbon
dioxide emissions a year.
Clean Growth Handbook Malaysia 73
 Other UK players in:
Solar photovoltaics
• Susgen invests in, develops and • Pager Power provide a range of solar
manages renewable energy assets services including feasibility studies,
including solar agrivoltaics shading assessments,
glint and glare assessments, among
• Green Investment Group is a others
specialist in green infrastructure
principal investment, project delivery • Action Renewables have completed
and the management of portfolio over 250 feasibility studies spanning a
assets including solar range of renewable energy
technologies including solar PV, wind,
• NextEnergy Capital is a solar investor biomass heating and anaerobic
and operator that focuses on the digestion plants
development, operation and
financing of renewable energy • Ethical Power is a vertically integrated
renewable energy company
• Bluefield Partners is an investment specialising in solar and battery
adviser to companies and funds projects. Services include initial
investing in solar energy development, design, construction,
infrastructure grid connection, operation and
maintenance, and asset optimisation
• Lightsource bp is the third largest
solar developer in the world that • Green Enco provide strategy and risk
manages the entire process from management solutions for solar and
screening through to ownership and battery assets including floating solar
asset management
• Brighter Green Engineering are a
• Downing is an investor and long-term provider of high-quality operations,
owner and operator of utility-scale maintenance and engineering
solar energy and storage assets services to the solar industry

• Anesco develop, design, construct, Note: many solar developers are also
operate, maintain and optimise both battery storage developers
ground mount solar PV and utility
scale battery storage. They also work
with energy utilities to deliver energy
efficiency home upgrades

74 Clean Growth Handbook Malaysia

 Bioenergy
5.5.2
What can the UK offer? Bioenergy potential and sources. Malaysia ranging in capacity from 1.1MW
Bioenergy generation capacity in to 2.4MW, with six more under
• Feedstock appropriateness and Malaysia was approximately 0.6GW in construction. All of their plants use
biogas potential 2020.32 According to estimates by SEDA, POME as feedstock. The company also
Malaysia could generate up to around has a pilot biomass plant in Johor that
• Feasibility studies 3.6GW of bioenergy comprising biomass uses EFB.
combustion or gasification (2.3GW),
• System design biogas production from anaerobic Diversifying from palm oil. It is largely
digestion or landfill gas capture only palm oil industry waste that is
• Project development (736MW), and municipal solid waste converted into energy. One key
combustion (516MW).4 The use of energy challenge faced in using other biomass
• Operations and maintenance crops for bioenergy generation is not waste feedstocks is its limited supply.
banned in Malaysia, however, MyRER Feedstocks experience competing
• Digestate product quality has only considered agricultural waste demand from South Korea and Japan,
standards and municipal solid waste as potential who purchase waste at much higher
feedstocks for bioenergy. While palm oil prices.
• Retrofitting coal power plants industry waste is the largest biomass
waste source in Malaysia, a proportion Bio Eneco, a biomass fuel producer,
of palm oil is grown for biodiesel produces sustainable biomass feedstock
generation. There have been concerns for renewable energy generation in
from the EU on the sustainability of palm boilers and furnaces. The biomass
oil-based biodiesel due to the feedstock includes wood chips, wood
deforestation and forest degradation pellets and palm kernel shells that meet
potentially linked to palm oil plantations, the specifications of East Asian and
however, this has not impacted European customers. The company is
Malaysia’s stance on the topic.44 committed to adhering to the highest
industry standards to instil confidence in
Palm oil waste as a feedstock. Palm oil customers and stakeholders.48
processing is a major industry in
Malaysia, but it produces a significant While there is an opportunity to consider
amount of waste in the form of empty other biomass feedstocks in more detail,
fruit bunch (EFB), palm oil mill effluent it should consider the wider economics.
(POME), mesocarp fiber and palm kernel
shells. Due to its abundance, high Energy from waste. In terms of energy
organic content and homogenous from waste projects using municipal
qualities, palm oil industry waste is a solid waste as feedstock, there is a
preferred feedstock for bioenergy project being developed Cypark that is
generation. The MyRER states that palm expected to commence operations in Q1
oil industry waste could generate 2.9GW 2023. This plant will be able to process
of energy, which makes up the majority up to 1,000 tonnes per day of municipal
of the bioenergy potential estimated in solid waste and produce up to 20MW of
Malaysia.3 However, not all palm oil energy.49 There are also several other
plantations are large enough to justify energy from waste projects of similar
the commercial viability of a power scale in the pipeline that are planned to
plant. The distance between the be developed under a Public Private
transmission main intake of the power Partnership (PPP) scheme under the
grid to any proposed plant also impacts Ministry of Local Government
commercial viability.45 Development (MLGD). However, only the
biogenic carbon waste component that
Players in the market. Bioenergy is incinerated is classified as renewable
companies such as Majunaka Eco energy. Best practice suggests organic
Energy, Concord Green Energy, Cenergi municipal waste should be segregated
SEA and Cypark lead many of these and treated separately otherwise
projects.46 Majunaka Eco Energy own post-combustion CCUS would have to
and operate a 9.95MW biomass power be adopted to abate the emissions
plant in Naka, Kedah. The plant mainly associated with the non-biogenic
uses rice husks as feedstock.47 Cenergi carbon content of the waste being
have 13 biogas plants in Peninsular incinerated.

Clean Growth Handbook Malaysia 75

 Figure 5.9:
Biomass waste sources and locations in
Peninsular Malaysia50

(a) (b)
Forest logging waste Empty fruit bunch

Plywood mill waste Oil palm frond

Saw dust Oil palm trunk

Palm pressed fibre

Fresh tonne/year Fresh tonne/year

310,000 3,000,000

235,00 2,200,000

178,000
1,700,000
135,000
1,300,000
102,000
970,000
78,000
735,000

(c) (d)
Rice husk

Rice straw Rubber logging waste

Fresh tonne/year Fresh tonne/year

500,000 29,000
117,000
22,000
33,000
12,000
16,700
6,500
3,800 12,600
9,600
7,300

Fig Least-cost location for Name of district

a Forest logging waste Gua Musang, Kelantan (Black flag no. 1).
a Plywood mill waste, saw dust Kuala Lumpur, Federal territory (Black flag no. 2).
b EFB, OPF, OPT, PPF Jempol, Negeri Sembilan (Black flag no. 3).
c Rice husk, rice straw Yan, Kedah (Black flag no. 4).
d Rubber logging waste Bentong, Pahang (Black flag no. 5).

76 Clean Growth Handbook Malaysia

UK Spotlight:
National Non-Food
Crops Centre

Organisation profile: National Key projects include:

Non-Food Crops Centre (NNFCC) is a • Renewables obligation sustainability
strategic consultancy with in-depth standards: Summary report presenting
knowledge of the bioeconomy. The GHG emissions reduction
organisation offers clients experience in opportunities for biomass electricity
the bioenergy and biofuels markets and and combined heat and power plants
the growing biobased products sector. in 2020 and 2030 by considering the
Established by the UK Government in GHG emissions of different biomass
2003 as the National Non-Food Crops feedstocks used in the UK.
Centre, NNFCC has grown to become a
leading commercial bioeconomy • Anaerobic digestion deployment in
consultancy serving an international the UK: Comprehensive research on
clientele. The team’s initial focus was on the policy and incentives affecting the
the development of the rural economy, development of the anaerobic
through development of industrial crop digestion sector in the UK and its
applications, which has widened over regional development trends.
the years to embrace climate change
mitigation through biofuel and • Biomethane and biogas carbon
bioenergy deployment. NNFCC also calculator: The calculator aimed to
cover land and marine based bio-based inform developers of their eligibility to
feedstock from agriculture and forestry claim renewable energy incentives for
to municipal and industrial wastes. biogas or biomethane production and
to highlight emissions in the supply
• Market analysis chain where action is required to
increase sustainability and strengthen
• Feedstock assessment and sourcing
eligibility for incentives.
• Sustainability strategy
• Technology and economic appraisal
• Business planning and opportunity
appraisal
• Policy and regulatory advisory

Clean Growth Handbook Malaysia 77

 Other UK players in:
Bioenergy
• Aston University’s Energy and • PM PROjEN designs and builds
Bioproducts Research Institute works biogas, biomass and biofuel plants,
on the commercial development of among others, with particular
emerging bioenergy, bioproducts and expertise in health and safety
supporting technologies
• BioteCH4 is an owner and operator of
• Supergen Bioenergy Hub works with anaerobic digestion plants in the UK
academia, industry, government and
society to develop sustainable and Future Biogas is an anaerobic
affordable bioenergy systems • digestion plant operators that also
provides services in monitoring
• Atkins is a multinational design, feedstocks, samples of digester
engineering and consulting services contents and digestate outputs
company that can undertake
feasibility studies and engineering • WRAP is a climate change NGO that
solutions for bioenergy plants developed the BSI PAS 110: Producing
Quality Anaerobic Digestate
• Agrivert provides engineering and
operating solutions for anaerobic • Renewable Energy Assurance
digestion in the UK and Hong Kong operates the Biofertiliser Certification
Scheme that provides assurance that
• Bio Capital owns and operates a digestate produced from anaerobic
portfolio of anaerobic digestion digestion is safe for human, animal
plants and plant health

• Bioenergy Infrastructure Group is an • Drax Group is a renewable energy

independent power producer of company that is involved with the
biomass to energy and waste to production of sustainable biomass,
energy in the UK bioenergy, BECCS and pumped
storage hydro. The organisation has
• MGT Teeside is a project company experience converting Drax Power
that built, owns and operates the Tees Station from a coal plant to a biomass
Renewable Energy Plant, a 299 MW plant
CHP biomass plant

• Marches Biogas specialises in the

design, construction and
commissioning of new anaerobic
digestion plants as well as ongoing
biological, mechanical, electrical,
process and regulatory support

78 Clean Growth Handbook Malaysia

 Hydropower
5.5.3
What can the UK offer? Large hydro. Currently in Malaysia, Small hydro players. Existing players in
hydropower is only used as a power Peninsular Malaysia include Touch
• Hydrology and climate scientists generation source rather than a pumped Meccanica-Makmur Hidro (30MW plant
storage system akin to battery storage. in Maran), TNB (15.7MW plant in Hulu
• Feasibility studies The total large hydropower (30MW and Terengganu) and Amcorp Perting Hydro
above) capacity installed in Malaysia (6MW plant in Bukit Tinggi). Existing
• Project development was 5.7GW in 2020.4 SEDA estimates players in East Malaysia include Jentayu
that Malaysia has the potential for Sustainables (one 24MW plant and one
• System design 13.6GW of large hydro. Most of the 16MW plant), KPower (29.1MW plant in
existing hydropower plants are in Kota Marudu) and Tonibung (30+ micro
• Operations and maintenance Sarawak due it resource suitability.51 SEB hydro systems in Sabah). Their
is the main player in developing development has been incentivised by
• Innovation in low head turbines hydropower facilities.52 Foreign the FiT scheme.
ownership is not permitted for large
scale hydro as it is considered a Low head hydro. The 30MW plant in
nationally critical asset. In an Energy Maran developed by the Touch
Transition Townhall in March 2023, the Meccanica and Makmur Hidro JV was
Minister of Natural Resources, the country’s first low head mini
Environment and Climate Change hydropower plant.54 There have been
shared the ecological concerns of hydro several others after this since it presents
powered dams. Experts have suggested itself as a cost-effective solution.
that the focus should be on small scale Moving forward, it is conceivable that
hydro to avoid “submerging massive development will shift to low head
areas of forests and farmlands to schemes constructed in the lower
generate hydroelectric power”.53 The reaches of major rivers.55
environmental impacts will require
greater consideration as pumped Challenges with small hydro. Despite its
storage hydro gains traction as an many advantages, small hydropower
energy storage system. technology has some limitations. One of
the key challenges is that the locations
Small hydro. Small hydropower plays a with the greatest hydro potential are
big role in electricity generation in rural often located far from the areas where
areas that have no access to the power demand for electricity is concentrated.
grid, especially in Sabah and Sarawak This means that infrastructure
where the grid is less developed. Small investments are needed to connect
hydropower developments can be small hydropower installations to the
broken down into full scale (10MW to main grid system, which can be costly
30MW), mini (500kW to 10MW) and micro and time consuming, or they need to
(5kW to 500kW). SEDA’s estimates for remain off-grid.51
small hydro capacity (up to 30MW)
stands at 2.5GW. Approximately 1.7GW Another challenge that needs
would come from Peninsular Malaysia, addressing is that under the small
0.6GW from Sabah 0.6GW and 0.2GW hydropower FiT scheme, typically only
from Sarawak.41 Foreign ownership is high-level desktop studies are
permitted for small scale hydro as it is undertaken for the FiT quota application
not considered a nationally critical result, which results in awarded quota
asset. being underutilised. Detailed feasibility
studies have revealed that Malaysia
lacks robust and accurate flow
measurements especially in remote
areas. This impacts projects’ overall
economics based on the awarded
capacity and FiT, resulting in
underutilised quota and a reduction in
the amount of revenue generated by
such projects.

Clean Growth Handbook Malaysia 79

 UK Spotlight:
Renewables First

Organisation profile: Renewables First Key projects include:

are engineering consultants and project • 700kW Hydropower Project in Remote
delivery experts, specialising in small to Scottish Forestry Site: The hydropower
medium scale hydropower development, scheme will generate approximately
wind turbine projects and water source 2,300,000 kWh of electricity in a
heat pumps. Renewables First was typical year, enough to provide
formed by the demerger of the hydro electricity for approximately 700
division of Segen in October 2009 and average homes, saving an equivalent
has since grown steadily all over the UK of 610 tonnes of CO2 per year when
and internationally. The company’s compared to typical fossil fuelled
focus is on quality and performance, electricity generation.
ensuring project completion that will
operate reliably and efficiently in the • 100kW Hydropower scheme at
future. Scottish Forestry Commission site:
Renewables First’s role extended to all
Description of services: stages of the scheme, including
feasibility, consenting, full technical
• Whole-project capability taking design and installation.
projects from initial feasibility,
consenting and design, through to
• 45kW Turgo turbine for Snowdonia
construction, installation and
National Park: Renewables First was
commissioning.
hired to produce detailed designs for
a hydropower scheme and project
• Clients include private landowners, manage the installation through to
community groups, private and public
commissioning. The site had already
companies, public sector
obtained planning permission and
organisations, investment groups and
abstraction and impoundment
water utility companies.
licenses. The scheme will comprise a
45kW Turgo turbine, utilising a 50m
head and a flow rate of 156 l/s.

80 Clean Growth Handbook Malaysia

Other UK players in:
Hydropower
• University of Reading’s Department of • Derwent Hydroelectric Power is an
Meteorology undertake ecology and expert in micro hydro and can offer
hydrology related research, and have services such as feasibility studies,
previously undertaken hydrological design, build, supply, refurbishment
training for the Ayeyarwady and commissioning
Integrated River Basin Management
in Malaysia • Hydroplan Group provides
engineering, operations and portfolio
• The UK Committee for International management services for hydro
Hydrology aims to better coordinate projects
UK contributions to international
hydrological and water resources • TLS Hydro Power is an owner and
management initiatives operator of small hydropower
schemes including new and
• Hydro-Logic Services have renovated project
experience in data collection to
assess the feasibility and compliance • Sustainable Control Systems is a
of hydropower sites producer of control systems for the
micro hydro industry
• Green Highland Renewables is a
small-scale hydro developer that • Gilbert Gilkes & Gordon is a
manages an operational potfolio of longstanding designer and
4.2MW and has a 21.9MW manufacturer of a range of
development pipeline hydropower turbines and engine
cooling pumps
• Allen Gordon specialises in the civil
and structural design of run-of-river • VerdErg Renewable Energy has
hydro schemes and have worked on designed the low head
60 projects from 50kW to 2MW Venturi-Enhanced Turbine
Technology
• Glen Hydro specialises in the
evaluation, development and project • Hallidays specialises in the delivery
management of small and medium and maintenance of low-head run of
scale hydro-electric schemes from river hydropower schemes. They have
50kW to 2MW a Malaysia based office to serve Asia
Pacific

Note: most players are based in

Scotland where hydropower
deployment is greatest in the UK

Clean Growth Handbook Malaysia 81

 Hydrogen
5.5.4
What can the UK offer? Hydrogen use in the electricity sector. Sultan Ismail Power Station in
Hydrogen has potential uses in the Terengganu to make use of both natural
• Finance including sustainable electricity, transport and buildings gas and hydrogen.59 Malakoff
finance sectors. Current uses in the electricity Corporation Berhad and ITOCHU
sector include co-firing in coal-fired Corporation have signed an MOU to
• Engineering and design for both power plants to reduce the plant’s conduct a feasibility study on
green and blue hydrogen emissions intensity. Hydrogen and decarbonisation using hydrogen and
production ammonia (hydrogen carrier) can provide ammonia in Johor. The two companies
flexible generation options when used in aim to explore the development of an
• Blue and green hydrogen gas turbines or fuel cells to help address ammonia receiving terminal, as well as
technology and project the variability of renewables generation. the decarbonisation of coal-fired power
developers In the long term, hydrogen can play a plants owned by Malakoff through
role in large scale and long-term storage ammonia co-firing and the development
• Hydrogen ecosystem clustering to balance variations in renewable of new combined cycle gas turbine
electricity supply.56 power plants utilising high hydrogen
• Repurposing of natural gas content fuels. The feasibility study will
networks for hydrogen Government plans. The government has be conducted in Johor Straits, a location
proposed a three-phase plan57 to that offers access to marine
• Hydrogen storage technologies establish a hydrogen economy in transportation and presents significant
Malaysia: opportunities for the development of an
ammonia receiving terminal, as well as
• Phase 1 looks to introduce green and
bunkering and supply to nearby
blue hydrogen for use in the chemical
industrial complexes.60
industry

Sarawak as a hydrogen hub. Sarawak is

• Phase 2 will look to use hydrogen as
currently leading Malaysia’s efforts in
fuel in internal combustion engines or
hydrogen due to the hydropower that
burners once hydrogen production is
can be used to generate green
more mature
hydrogen.61 There are two notable
projects: the first is a SEB and Linde EOX
• Phase 3 will look to use hydrogen as
project that has already launched and
fuel for vehicles, fuel-cell CHP and
the second is a MOU between Sarawak
energy storage
Economic Development Corporation
The Ministry of Science, Technology and (SEDC), Samsung Engineering, Lotte
Innovation (MOSTI) and NanoMalaysia, Chemical Corp and POSCO. Most of the
a GLC entrusted with nanotechnology hydrogen use cases are centred around
commercialisation activities, are transport and industry. Over the next
currently drafting the National decade and in line with MyRER, the
Hydrogen Strategy.58 focus will be on commercialising the use
of green hydrogen for fuel cell and
Fuel replacement projects. There are energy storge uses. Petronas and SEB
several projects considering co-firing have signed an MOU to explore the
hydrogen with natural gas or coal. commercial production of green
Gentari and TNB are conducting a hydrogen and its supply chain in Asia.
feasibility study to repower TNB’s retired

Months
Figure 5.10: Pumped
Hydrogen
Storage energy and storage time of Hydro
different energy storage solutions
including hydrogen62
Storage time

Compressed Air
Energy Storage
Batteries

Flywheels
Seconds Superconducting
Supercapacitors magnets

kWh GWh
Stored Energy

82 Clean Growth Handbook Malaysia

UK Spotlight:
ITM Power

Organisation profile: ITM Power is an of its kind in Europe, and the largest of
energy storage and clean fuel company its kind to be deployed on a major
founded in the UK in 2001. The company scale. The hydrogen will be used for
designs, manufactures and integrates processing and upgrading products
proton exchange membrane and explore applications in other
electrolysers to produce green sectors including industry, power,
hydrogen. ITM Power becomes the first heating for buildings and transport.
hydrogen company publicly listed on the
London Stock Exchange and was also • HyDeploy: HyDeploy is a GBP22.5
granted a Green Economy Mark from million Ofgem Network Innovation
the exchange. Competition project to establish the
potential for blending up to 20% of
Description of services: The company green hydrogen into the normal gas
has been designing and manufacturing supply to reduce CO2 emissions. Out
electrolyser systems that generate of the two phases of the project, ITM
green hydrogen based on proton Power was involved in the first phase
exchange membrane (PEM) technology demonstrating the safe use of green
using renewable electricity and tap hydrogen blends within existing
water. Hydrogen produced via infrastructure. The HyDeploy project
electrolysis is used for mobility, has made significant progress in the
Power-to-X and industry. technical and regulatory
requirements to enable the
introduction of a green hydrogen
Key projects include:
blend within the UK gas distribution
• REFHYNE: The project aims to supply network.
clean refinery hydrogen for Europe.
The project reached a key milestone
• H2 Mobility: The company installed
in July 2021 with the opening of the
Hfuel, an electrolyser-driven
EUR16 million 10MW REFHYNE PEM
hydrogen refuelling station (HRS) at
electrolyser built by ITM Power. Using
numerous locations in the UK. Over
renewable electricity, this electrolyser
the years, a total of seven HRS has
can produce 1,300 tonnes of green
been installed.
hydrogen a year, making it the largest

Clean Growth Handbook Malaysia 83

 Other UK players in:
Hydrogen
• HydrogenOne Capital Growth is an • SSE Renewables has unveiled plans to
investment company with a portfolio co-locate a hydrogen production
of holdings in the hydrogen market facility with Gordonbush Wind Farm

• Wood provides project development • Statera Energy has 6.2 GW of

support as well as a proprietary hydrogen production under
hydrogen technology, modular development including a 3 GW facility
equipment and engineering, in Kintore, Aberdeenshire
procurement, and construction
delivery • Supercritical has developed a novel
electrolyser that directly generates
• WSP provides advisory, engineering compressed green hydrogen
and project management expertise in
the production, storage, distribution • Hydrogen East is bringing together
and utilisation of hydrogen stakeholders on hydrogen in the East
of England across six core
• Johnson Matthey provides a range of electrolyser sites
hydrogen production catalysts,
processes and components for • INEOS and Scottish Gas Networks
hydrogen fuel cells have started a 29km pipeline project
to show how natural gas pipelines can
• CPH2 is a developer of membrane be repurposed for hydrogen
free electrolysers for green hydrogen
production • HyDeploy are pioneering the safe use
of blended hydrogen in gas networks
• Ceres has developed a solid oxide to reduce emissions
fuel cell technology for the
production of green hydrogen • H2GO has a hydrogen storage
technology portfolio
• AFC Energy is a developer of alkaline
fuel cell systems • Graviticity has developed H2
FlexiStore underground hydrogen
• Protium is a full value chain green storage technology that uses the
hydrogen energy solutions provider. geology of the earth to safely store
They develop, own and operate large volumes of green hydrogen
renewables and green hydrogen
infrastructure Note: Blue hydrogen solution
providers are typically
also CCUS solution providers

84 Clean Growth Handbook Malaysia

 Nuclear
5.5.5
What can the UK offer? Nuclear research in Malaysia. Malaysia The 10MP (2011-2015) laid out plans to
has been a member of the International undertake nuclear power feasibility
• Skills in design, manufacturing, Atomic Energy Agency (IAEA) since 1969. studies, human capital development
hazards and safety assessments Nuclear and atomic research in and public awareness campaign. The
Malaysia started in 1972 with the set up 11MP (2016-2020) saw a continuation of
• Support on front end fuel of the Centre for Application of Nuclear the 10MP narrative around further
production activities Energy, now known as the Malaysian exploring the feasibility and building
Nuclear Agency. Much of the agency’s public awareness. There is no mention of
• Market assessment of the research has been based around the nuclear power in the 12MP (2021-2025).
nuclear fuel cycle supply chain TRIGA Puspati nuclear reactor, which MyRER provides some context on
has been operational since 1982. The nuclear power but it doesn't currently
• Operations and maintenance reactor was designed to understand the form part of future plans.
basics of nuclear science as well as
• Nuclear decommissioning and undertaking studies on advanced Recent push to increase skills. Malaysia
waste management neutron and gamma radiation such as is still considering the potential role for
radioisotope production for medical, nuclear power due to the rising demand
industrial and agricultural purposes. for clean energy sources. In September
2022, the Malaysia Nuclear Agency,
Nuclear in national policy and plans. IAEA and MOSTI signed Malaysia's
There are currently no operational Country Programme Framework
nuclear power plants in Malaysia. 2022-2027 on nuclear development. The
However, it has been included in several framework identifies critical areas of
plans over the last decade. Its first nuclear technology knowledge-transfer
mention was in Malaysia’s Economic and technical cooperation to support
Transformation Plan 2010. Under the the national development of the nuclear
plan, a target was set to commission the industry in Malaysia.
first 2GW twin unit nuclear power plant
by 2021. There were four enablers
outlined in delivering the plant: public
acceptance, international governance,
regulatory context and site acquisition.
In 2011, the government established the
Malaysia Nuclear Power Corporation to
spearhead nuclear power development
in the country including developing
Malaysia’s first nuclear power plant.

Clean Growth Handbook Malaysia 85

 UK Spotlight:
Rolls-Royce

Organisation profile: Established as an Key projects include:

automotive design firm in 1906, • UK SMRs: Rolls-Royce’s SMR has
Rolls-Royce now provides a wide range transformed the delivery environment
of design, engineering, manufacturing, of nuclear reactors from large
operations and maintenance services complex infrastructure into a factory-
for propulsion and power generation built commoditised product. The UK
applications. With over 44,000 government aims to build 16 SMRs in
employees across the aerospace, power the next 25 years to secure the UK's
and defence sectors, the UK-based energy supply and hit its net-zero
company has formally entered the civil target by 2050. The creation of the
nuclear sector as a technology vendor, SMR business was given a GBP195
with a vision of deploying affordable, million cash injection from private
reliable small modular reactor (SMR) firms and a GBP210 miliion grant from
technologies around the world at scale. the UK government.

Description of services: • Sharing in Growth: As the lead

• Power systems – Focus on creating member in the UK Nuclear Advanced
sustainable, climate neutral solutions Manufacturing Research Centre,
for drive, propulsion and power Rolls-Royce has helped SMEs in the
generation including in the nuclear UK nuclear supply chain to uplift their
sector competitiveness locally and globally.

• Civil aerospace – Developing

turbofan aircraft engines, net zero
flight solutions and business aviation

• Electrification in aviation – Creating

advanced air mobility solutions on
electric propulsion and energy
systems

86 Clean Growth Handbook Malaysia

Other UK players in:
Nuclear
• The UK Atomic Energy Authority was • National Nuclear Laboratory is UK’s
set up by the British government to national nuclear laboratory and
oversee the nation's nuclear research operates on a commercial basis. They
programme and develop reactor are the nuclear services technology
technologies for nuclear power provider in the nuclear fuel cycle
stations
• Urenco Group is an international
• Eadon Consulting offers engineering supplier of enrichment services and
design and analysis services for the fuel cycle products for the civil
energy, nuclear and process nuclear industry, serving utility
industries such as design of high customers worldwide
integrity handling equipment with
seismic qualification • Capula specialises in fuel production
through to new-build, construction,
• Abbott Risk Consulting offers safety, operation, waste management and
engineering and risk management decommissioning in the nuclear
consultancy services to the energy, sector
nuclear, mining and rail sectors
• Cumbria O & M Services specialises in
• Antech is an independent provider of operations, maintenance and system
radiation measurement equipment, engineering, experienced in
non-destructive measurement managing nuclear projects
services and technical expertise to
the nuclear industry • JF Nuclear specialises in nuclear new
build, nuclear fuel manufacturing,
• Nuclear Advanced Manufacturing nuclear power generation, and
Research Centre specialises in decommissioning
developing techniques and processes
for large-scale high-precision • Magnox and Sellafield are responsible
manufacturing through commercial for the decommissioning of the
research while providing supply chain Sellafield nuclear facility focusing on
development support delivering nuclear decommissioning
and clean-up programmes, nuclear
fuel production and reprocessing, and
international nuclear
decommissioning and transportation
missioning and reactor segmentation

Clean Growth Handbook Malaysia 87

 Grid integration of
5.5.6 renewables
What can the UK offer? Grid roll out of battery storage. In the BESS, with the market already
Malaysia Energy Transition Outlook responding.65 In December 2022,
• Finance including sustainable published by the International Standard and Industrial Research
finance Renewable Energy Agency earlier this Institute of Malaysia (SIRIM) and Ion
year, USD23 million worth of investment Ventures Energy Transition signed an
• Feasibility studies and project to 2030 has been estimated on storage MOU to develop solar photovoltaics and
development solutions.63 Presently, only utility scale BESS.66 Stakeholders in the energy sector
battery energy storage systems (BESS) have voiced that to encourage the
• BESS system design and are being largely considered in adoption of renewable energy, energy
aggregators Malaysia. According to the Energy storage must be more commercially
Commission, a 500MW BESS pilot viable. This is a global challenge that
• BESS installation and project will first be implemented ahead needs addressing.
commissioning of 100MW of BESS capacity being added
each year between 2030 and 2034.24 Grid stability. At present, Malaysia’s
• BESS maintenance and repair Discussions about the pilot project were power grid has capacity to take on more
held between the Energy Commission, renewable energy capacity up to 2030
• Grid stability MNRECC, Single Buyer, TNB Grid, TNB without affecting grid stability. This is
Distribution System Operator, TNB the reason as to why official plans to
• Smart grids Distribution Network and SESB in introduce BESS will only begin in 2030.
September 2022.64 However, the International Renewable
Energy Agency’s director-general said
Further drivers for BESS. In November that grid investments must be
2022, the Malaysian government committed now to ensure continuity
introduced a policy allowing corporate through the energy transition.67 The
virtual power purchase agreements agency has estimated that USD8.4
(PPAs) on the electricity market under billion is required in Malaysia’s national
the Corporate Green Power Programme transmission and distribution
(CGPP), where it allows first time buyers infrastructure from now until 2030. TNB
and sellers to trade green electricity has said it will invest USD4.6 billion in the
outside of the traditional long term PPA period through to 2024. This should in
market with TNB. This is likely to turn encourage greater investment into
increase the supply and demand of renewables.

100

Figure 5.11: 207

BESS capacity projects in relation to

Installed Capacity, MW

100
renewable energy and thermal (natural 215

gas and coal) projects, 2021-203924 100

77
199 232
2,800
100 100
2,100
80 76
224 242
1,400 1,500
1,200
700 700 278 700 700 700
619 559 117 184 192

2021 2022 2023 2024 2025 2026 2027 2028 2030 2029 2031 2032 2033 2034 2035 2036 2037 2038 2039

Battery Storage Renewable Energy Thermal

Figure 5.12:
Benefits of BESS68 Frequency regulation

SYSTEM OPERATION Flexible ramping

Black start services

Energy shifting and capacity

Investment deferral
INVESTMENT DEFERRAL
Transmission and distribution
congestion relief

Reduced RE curtailment
SOLAR PV AND WIND
SERVICES OFFERED GENERATORS
BY UTILITY-SCALE Capacity firming
BATTERIES

MINI-GRIDS Reduced reliance on diesel

generatos

88 Clean Growth Handbook Malaysia

 Smart grids. Smart grids are being At state level, Melaka has been selected
implemented to varying degrees by TNB, as one of 28 cities in the world under the
SESB and SEB. TNB is the most advanced Global Environment Facility’s Smart Grid
with pilots beginning in 2012 and plans project. This effort is in line with the
included under the Grid of the Future strategy in the Smart Melaka Blueprint
programme in 2025. Smart grid 2035. This project, that is supported by
initiatives are included in SEB’s TNB and will end this year, has involved
Digitalising Sarawak Energy, which was policy development, capacity building,
published in 2021. SESB is yet to publish awareness raising and a demonstration
any plans but has mentioned an project for 30,000 residential units.71
ambition to digitalise back in 2020.69 In
2022, TNB ranked 48 out of 94 utilities in
39 countries on the Smart Grid Index.
SEB ranked 82nd while SESB was not
ranked.70 It is encouraging that all three
organisations have embarked on the
smart grid journey, but further plans and
investments are needed to bring it up to
global standards.

Figure 5.14:
Smart grid initiatives from TNB (Top) and
SEB (Bottom)

Data Analytics
Smart Grid Smart Meter Coverage,
Data Analytics
Focus Application

Monitoring Security
& Control IT/OT
SCADA, DMS Cyber Security
/ ADMS

Customer Empowerment
Supply Reliability & Satisfaction
SAIDI, SAIFI Real-Time Data to
Customers, Customer
Satisfaction Feedback

Clean Growth Handbook Malaysia 89

 UK Spotlight:
Harmony Energy

Organisation profile: Harmony Energy is • Wind: Harmony Energy has built and
an independent developer of renewable operated 15 wind power sites in the
energy assets that include battery UK. Its wind projects are backed by
storage, solar and wind technology. It one of the world’s largest
currently builds, owns and operates infrastructure investors, Universities
utility scale renewable energy assets of Superannuation Scheme. The majority
up to 250MW across the UK, France and of its wind investments has been sold
New Zealand. Its investment arm, to Blackfinch Investments in 2019.
Harmony Energy Income Trust, currently
focuses its investment on a diversified
portfolio of BESS in the UK. In 2022, it Key projects include:
launched the Pillswood project in East • The Pillswood Project: This is the
Yorkshire, the largest battery storage largest battery storage system in
system in Europe. Europe that is connected to the UK
national grid. It has the potential to
Description of services: store up to 196MWh of electricity per
• Battery storage: Harmony believes cycle, enough energy to power up to
that BESS is the key to solving 300,000 home for two hours.
intermittent renewable energy
connected to the grid. It has 42MW of • Partnership with Tesla: Harmony
BESS operating in the UK, with a Energy Income Trust have an
future of 325MW in planning or agreement with Tesla for BESS supply,
construction phase. construction, warranty, maintenance
support and revenue optimisation.
• Solar: The company is developing These projects will benefit from
200MW of standalone solar along Tesla’s 2-hour Megapack system that
with 500MW of projects co-located increases the number of MWh’s
with its battery storage projects. utilised by the grid.

90 Clean Growth Handbook Malaysia

 Other UK players in:
Grid integration of
renewables
• Gresham House is the largest battery • Rolls-Royce has developed the mtu
energy storage investment manager QG EnergyPack storage solution in
in the UK three sizes: QS, QM, and QL, from 60
kVA to 2,000 kVA, and from 70 kWh to
• Zenobe develops, finances, builds and 2,200kWh
operates large-scale battery storage
systems • Statera Energy builds, owns and
operates flexible energy
• Gore Street Capital is a private equity infrastructure to balance grid supply
investor and the investment manager and demand using battery storage
of the publicly listed Gore Street and hydrogen
Energy Storage Fund
• National Grid Electricity System
• Ion Ventures’ business model is to Operator has changed the GB Grid
originate and develop energy storage Code so that renewable generators
projects in both the UK and the and power interconectors can now
Southeast Asia compete to provide grid stability
services
• PeakGen is an expert in energy
generation, transmission and • Powersystems is a high voltage
distribution networks with an asset specialist with experience in carrying
portfolio of over 200MW of battery out battery energy storage electrical
storage and cleaned-up diesel balance of plant contracts and
generators implementing rotating stabilisers

• InterGen has gained planning • Open Energi, now a bp company,

permission for a 320MW lithium-ion stack and trade battery storage for
battery site at a new port and asset optimisation
logistics centre on the Thames
Estuary in Essex • SSE Energy Solutions optimises grid
performance against objectives such
• Flexitricity provides demand-side as revenue generation, carbon
response and energy management reduction and supply security through
services including aggregated energy bespoke algorithms
balancing, grid services and energy
storage solutions • Ecotricity has developed a smart grid
scheme for energy consumers to help
• Locogen provides a turnkey service deliver flexibility services to the
for energy storage systems including national grid
feasibility studies, energy use/yield
analysis, financial projections, system
design and installation

Clean Growth Handbook Malaysia 91

 Summary of energy sector
5.6 collaboration opportunities
UK-Malaysia collaboration Demand drivers Expertise offered Examples of
opportunities in Malaysia by the UK UK players

Developing integrated • Solar PV systems are not yet • System design and aggregators • Susgen
solar PV and battery integrated with BESS, resulting
storage systems in supply intermittency and grid • Project development • NextEnergy Capital
instability challenges
• Installation and commissioning • Lightsource bp
• Remote, inaccessible areas
could be electrified off grid with • Maintenance and repair • Anesco
a combination of solar PV and
BESS • Ethical Power

Commercialising • Affordability of BESS is required • Feasibility study and project • Zenobe

BESS technology to help bring forward development
implementation from 2030-3024 • Ion Ventures
to support more ambitious • System design and aggregators
renewable electricity • PeakGen
targets • Installation and commissioning
• Locogen
• Maintenance and repair
• Powersystems

• Open Energi

Diversifying bioenergy • Use of palm oil industry waste • Feedstock appropriateness and • Supergen Bioenergy Hub
plants to process as feedstock is increasingly biogas potential
biomass waste becoming scrutinised globally • Atkins
feedstocks other than • Feasibility studies
from the palm oil industry • There is a large quantity of • Agrivert
waste other biomass waste that is • Project development
underutilised • Bio Capital
• System design
• Bioenergy Infrastructure
Group

• MGT Teeside

• Marches Biogas

• PM PROjEN

Supporting the technical • Malaysia has many sites with • Hydrology and climate • Hydro Logic Services
and financial feasibility great potential for small scale scientists
of small scale hydropower • Glen Hydro
hydropower projects • Innovation in low head turbines
• Lack of robust and accurate • Derwent Hydroelectric
flow measurements prior Power
to project commencement
• TLS Hydro Power

• VerdErg Renewable
Energy

• Hallidays

Developing standards • Sarawak has 30 trillion cubic • Public safety in the hydrogen • Wood
and governance around metres of carbon storage transition
hydrogen and carbon capacity that many countries in • Johnson Matthey
storage Asia have already expressed • Hydrogen storage technologies
ambitions to use • CPH2
• Carbon storage regulations
• Protium

• SSE Renewables

• Statera Energy

• H2GO

• Graviticity

92 Clean Growth Handbook Malaysia

 UK-Malaysia collaboration Demand drivers Expertise offered Examples of
opportunities in Malaysia by the UK UK players

Developing safety • In September 2022, IAEA signed • Nuclear research, development • National Nuclear
guidance across the full Malaysia's Country Programme and innovation Laboratory
value chain of nuclear Framework for the period of
development activities 2022-2027 • Project development • Nuclear Advanced
Manufacturing Research
• Nuclear, radiation safety and • Reactor design Centre
nuclear security is one of
five priority collaboration areas • Front-end fuel production and • Abbott Risk Consulting
supply chain readiness
• Antech
• Hazard and safety assessments
• Eadon Consulting
• Operations and maintenance

• Decommissioning and waste

management

Design and adoption of • Investments worth USD23 • Grid stability • Flexitricity

grid stability measures million will be required up to
including BESS, hydrogen 2030 in Malaysia on storage • Smart grids • Statera Energy
and pumped hydro solutions
• SSE Energy Solutions
• The country has plans to
develop its hydrogen economy • Ecotricity
and maximise the use of hydro

Retrofitting fossil fuel • Co-firing in coal fired power • Repurposing of natural gas • INEOS
power plants and gas plants are already networks for hydrogen
network for renewable underway with retiring coal • Scottish Gas Networks
and transition fuels plants a commercially unviable • Retrofitting coal power plants
option • HyDeploy

• Drax Group

Clean Growth Handbook Malaysia 93

 Market entry considerations
5.7 for UK companies
Demand drivers. Power demand in For other power subsectors, it is about
Malaysia is expected to increase in the finding the most cost-effective sites and
coming years, by virtue of population agreeing power purchase terms with the
growth and a rapidly developing single buyers in each region. For
economy. With clear targets to increase hydrogen and BESS, the market is less
the share of renewable energy, there are competitive as both subsectors are still
many opportunities for UK businesses to in their infancy.
enter the Malaysian market. Below are
some aspects to consider for market Key next steps. The following is an
entry into the power market as a UK outline of key steps that can be taken by
company. a UK company intending to enter the
renewable electricity market in
Local partner. In general, foreign Malaysia.
ownership in power plants is restricted
to a maximum of 49% as power plants • First point of contact. For UK
are considered to be a national companies looking for a first point of
strategic asset. A maximum of 49% contact, the Sustainable Energy
foreign shareholding was allowed during Development Authority is a good
LSS3 and LSS4 bidding. The Energy place to start.
Commission confirmed that
participation by foreign players in the • Finding a local partner. Typically for
bidding entity or any of its corporate renewable energy projects,
shareholders would be permitted as long companies will form a consortium to
as participation was via “non- bid for projects that develop new
convertible preference shares with debt capacity. It is important that UK
characteristics and no voting rights”.72 companies find a local partner and
There are also restrictions on foreign establish relationships early to
shareholding for the engineering, prepare for bids especially when
procurement and construction (EPC) bidding periods can be short.
contractors and other contractors.73
Since foreign companies are restricted • Licencing and registration. It is
in their ownership of a power company recommended for a UK company to
in Malaysia, a local partner is needed. incorporate a local company in
Malaysia with the Companies
Single buyer market. Renewable energy Commission in Malaysia as this
IPPs sell their electricity generated to provides the most flexibility for
TNB (Peninsular Malaysia), SEB business expansion in Malaysia.
(Sarawak) and SESB (Sabah) – the only Another registration that must be
offtakers in their respective done to be eligible for Government
geographies. The exception to this are contracts is registration with the
captive plants, which only serve a Ministry of Finance.74
specific area such as an industrial
estate. This makes lines of • Bidding for projects. New renewable
communication and coordination very electricity capacity in Malaysia is
clear for potential UK players. commissioned through the
Sustainable Energy Development
Competition. The solar market in Authority. With early preparation, UK
Malaysia is competitive, with companies can enter the market
established local and foreign firms in the pre-award instead of post-award, as
market. Between the LSS and CGP entering post-award would be more
programmes, there is only a finite challenging.
amount of utility scale solar capacity
available to bid for each year, which Manufacturers of power plant and
increases competition and has pushed equipment can refer to the market entry
contract values down. considerations in Section 8.7
of this Handbook for manufacturing-
related considerations.

94 Clean Growth Handbook Malaysia

Section 6

Sector: Transport

Transport covers public, private and active transport modes. In this section, a
transport sector market overview is provided for Malaysia covering key policies,
governance, trends shaping the sector and a summary of current initiatives in
different subsectors. For each subsector, UK-Malaysia collaboration opportunities
and a selection of upcoming projects in Malaysia have been identified.

Clean Growth Handbook Malaysia 95

 Transport sector highlights
6.1 and ecosystem
• The government has taken a • To support a mode shift away from
multi-faceted approach to transport cars, the government is financing
decarbonisation in Malaysia. There major public transport projects,
are targets to achieve 40% public particularly rail. Construction of the
transport mode share by 2030, East Coast Rail Link connecting east
mandates on bio-based content in and west Peninsular Malaysia is
fuel and tax incentives to support the underway. In Klang Valley, MRT2 has
uptake of EVs. just began operating and
construction of LRT3 is underway.
• Despite the government’s efforts, Investments in the maintenance and
there is resistance to decarbonisation overhaul of rolling stock are required
due to Malaysia's prominent car to increase the reliability of rail
culture. This is driven by the density of service provisions.
roads in the country and low fuel
prices in light of government fuel • A suite of government incentives has
subsidies. spurred private sector investment in
EV manufacture and EV-related
• The uptake of public transport has infrastructure. However, greater
been low as the public transport investment is needed to scale
networks have limited coverage and infrastructure and reduce the cost of
are often unreliable. The lack of ownership of EVs.
integrated transport planning also
makes first-and-last-mile connectivity • Micromobility is currently in the
to public transport stations lobbying phase. Service providers are
challenging. in the process of demonstrating the
potential of micromobility to
• There are relatively strong high-level lawmakers and local councils
plans, but effective execution remains following a recent ban on their use on
a challenge without a main governing public roads.
body to organise stakeholders.

Malaysia's clean growth stakeholder

ecosystem in transport

Public Sector Private

and Government Sector

Clean
Industry
Growth Non-
governmental
Associations Stakeholder Organisations
Ecosystem

Academia and
Financial
Research
Institutions
Institutions

96 Clean Growth Handbook Malaysia

 Transport policies and plans
6.2
National Transport Policy 2019-2030. Green Technology Master Plan
UK Success Story: Effective low The National Transport Policy (NTP) is a 2017-2030. The Green Technology
carbon transport policy execution roadmap aimed at improving the Master Plan (GTPM) highlights transport
• At the national level, the UK’s governance, accessibility and inclusivity as one of six sectors that require
Department for Transport works of transport systems in Malaysia. It also upgrades in sustainable technologies.
closely with other government promotes a green transport ecosystem This includes improving infrastructure
departments, operators and by encouraging the use of cleaner fuels, and digital systems for efficient
industry stakeholders to deliver an increase in EV adoption and connectivity between different modes of
national transport policy. One prioritising public transport. To support transportation. The plan aims to
example is the Bus Services Act the decarbonisation of the transport increase the share of public transport by
2017, which provides new powers system, the NTP sets out plans to limit 40% in all cities and convert 85% of the
to local authorities to improve bus the construction of urban highways in remaining vehicles on the road into
services in their areas. The act favour of active and public transport energy-efficient options.
enables local authorities to development. The policy also aims to
franchise bus services, which integrate national ministries, state and Other plans embedding low carbon
allows them to set service local government transport plans into a transport. There are several other plans
standards and fares, as well as single policy document, promoting that emphasise the need to enhance the
provide a more coordinated and greater coordination.1 quality, diversity and accessibility of
integrated network. transport modes in Malaysia. This
National Energy Policy 2022-2040. The includes the National Low Carbon Cities
• At the urban level, London’s National Energy Policy (DTN) provides Masterplan (NLCCM), the National Land
transport network stands out as investment incentives in low carbon Public Transport Master Plan (NLPTMP),
being world-class. Transport for mobility and hydrogen, among other National Biofuel Policy (NBP) and the
London (TfL) manages public energy technologies.2 Some of its National Automotive Policy (NAP).
transport in London. It implements targets include B30 as an alternative
successful policies like the fuel standard for heavy transport and a
Congestion Charge that requires 38% EV mode share by 2040.
drivers entering Central London
during peak hours to pay a fee to Low Carbon Mobility Blueprint
encourage the use of public 2021-2030. The Low Carbon Mobility
transport. It also makes Blueprint (LCMB) aims to reduce the
infrastructure investments like the carbon emissions associated with land
Cycle Superhighways that are transport through energy efficient
dedicated cycling routes that run vehicles (EEVs), EVs, alternative fuels
through the city to support active and public transport mode share. Some
mobility. Furthermore, TfL have of the 2030 targets include procuring
pioneered the introduction of EVs for 50% of the government’s new
contactless payments on public car fleet and establishing a national
transport, real-time travel target of 9,000 AC charging points and
information for passengers and Wi 1,000 DC charging points. There are
Fi at train stations. outline plans for shifting logistics from
road to rail to reduce supply chain
• These policies and initiatives and emissions.3
many others have been successful
in contributing to a cleaner
transport sector in the UK. The
UK's transport emissions
decreased by 23% between 1990
to 2020, dropping from
128 MtCO2e to 99 MtCO2e.4

Clean Growth Handbook Malaysia 97

 Transport governance
6.3
Main government agencies. The Addressing governance challenges.
development of the transport sector in Despite efforts to enhance low carbon
Malaysia is driven by four government transport in Malaysia, an integrated
ministries. The Ministry of Transport strategy that incorporates various
(MOT) covers the policy, regulation and modes of transport is lacking. Experts
licensing aspects of land transport, have stated that the involvement of
aviation, maritime and logistics. MOT numerous government ministries and
also plays a role in transport agencies in transport has resulted in
infrastructure development. The Ministry fragmented planning and
of Works (MOW) is responsible for the implementation of projects.5 In some
construction of public infrastructure cases, it has even prevented projects
such as highways. The Ministry of from being implemented altogether
Finance (MOF) owns companies and such the bus rapid transit (BRT) corridors
subsidiaries that develop and operate and monorail extension projects put
transport infrastructure, such as forward in the Land Public Transport
Keretapi Tanah Melayu (KTM), Malaysia Master Plan.6 Recognising the need for
Rail Link (MRL), Prasarana, Mass Rapid efficiency improvements, the NTP
Transit Corporation and MyHSR proposed to integrate and streamline
Corporation. Lastly, the Ministry of Local the operations of different ministries,
Government Development (MLGD) is agencies and local governments.1 This is
involved in local transport planning. yet to fully materialise.

The organisation structure of MOT and

its relationship to MOF and MOF owned
or financed companies is provided in
Figure 6.1.

Figure 6.1:
Organisation structure of the institutions
and government linked companies
operating under the Ministry of Transport
and Ministry of Finance7

Coordination

MINISTRY OF TRANSPORT MINISTRY OF FINANCE

ROAD SEA LAND PUBLIC

TRANSPORT TRANSPORT TRANSPORT
DEPARTMENT DEPARTMENT DEPARTMENT

Ownership
or financing
relationship

CIVIL AVIATION MALAYSIAN MARITIME COMMERCIAL COMMERCIAL

AUTHORITY OF INSTITUTE OF ROAD INSTITUTE VEHICLE LICENSING VEHICLE LICENSING
MALAYSIA SAFETY RESEARCH MALAYSIA BOARD SABAH BOARD SARAWAK

KLANG PORT JOHOR PORT KUANTAN PORT BINTULU PORT P.PINANG PORT RAIL ASSET
AUTHORITY AUTHORITY AUTHORITY AUTHORITY AUTHORITY CORPORATION

MALAYSIAN MALAYSIA MASS RAPID PRASARANA PROTECTION &

MALAYAN MALAYSIA RAIL KEMAMAN PORT MELAKA PORT LABUAN PORT
AVIATION AIRPORT TRANSIT MALAYSIA INDEMNITY
RAILWAYS LIMITED LINK SDN BHD AUTHORTY AUTHORITY AUTHORITY
COMMISSION HOLDINGS BERHAD CORPORATION BERHAD MALAYSIA

98 Clean Growth Handbook Malaysia

 Trends shaping the
6.4 transport sector
The car culture. Private transport is the National car brands. The push to
predominant mode of transport in decarbonise Malaysia's transport
Malaysia. The country’s extreme land system may face opposition from the
use pattern, large investments in road country’s automotive industry. Proton
infrastructure and limited availability of and Perodua, Malaysia's national
public transport all support the need for automotive companies, were
private vehicles. There are more established to drive growth in the
expressways per capita in the Klang manufacturing sector. In 2021, the
Valley (covering Kuala Lumpur, automotive industry contributed 4% to
Putrajaya and Selangor) than other Malaysia's GDP and provided
Southeast Asian cities.8 Figure 6.2 shows employment to 82,000 people.10, 11 While
how investments in road infrastructure public and active transport can reduce
have historically been much greater carbon emissions, there are concerns
than other transport modes and will about their impact on employment and
continue to be the case in the future. economic growth. Studies to show the
employment and economic growth
In addition to the infrastructure potential of a low carbon transport
disparity, there are also fuel subsidies in system is required to change
place for consumers. This costs the perceptions.
government just over RM37 billion in
2022. Ironically, 53% of the cost Perceptions of public transport. The
benefitted the top 20% of households by provision of public transport, even in
income as indicated in Figure 6.3.9 Like developed cities, remains low. Research
electricity subsidies, there is potential to shows that most Malaysians avoid
modify the fuel subsidy framework to public transport due to issues
redistribute the benefits to focus on concerning effectiveness, reliability and
low-income households and reduce the overcrowding. The KTM Komuter in
government bill. Given many factors Klang Valley is one example. Poor
that favour the use of private vehicles, maintenance has reduced train
transitioning to public and active frequency such that commuters often
transport will take time. have to wait for a third train during peak
hours to board with waiting times
ranging from 30 minutes to 2 hours.12
Another example of low reliability is the
recent LRT interruption on the Kelana
Jaya line serving parts of Klang Valley,
which required the closure of 16 stations
for a week.13
10
Figure 6.2: Energy Transport: Road
Past, present and future transport
Telecommunication Water
infrastructure investments in Malaysia,
Transport: Ports Airport
2005-204014
5 Transport: Rail
USD Billions

0
2005 2010 2015 2020 2025 2030 2035 2040

Figure 6.3: Annual subsidies (RM bil) 2018 2019 2020 2021 2022
Breakdown of fuel subsidies for 202215 Petrol, diesel and LPG 7.4 6.1 1.6 13.2 37.3

B40
RM5.6 bil
15% 53%
Almost RM20 bil of the
RM37.3 bil projected RM37.3
petrol-based subsidies for bil
2022 goes to the top 20% T20
32% RM19.8 bil
M40
Clean Growth Handbook Malaysia RM11.9 bil 99
 Figure 6.4:
Current interstate rail transport
networks, ports and airports16

100 Clean Growth Handbook Malaysia

Section 6.5

Subsector market
overviews
This section provides market overviews of six key transport subsectors. For each
subsector, UK-Malaysia collaboration opportunities and a selection of upcoming
projects in Malaysia have been identified.

Clean Growth Handbook Malaysia 101

 Rail
6.5.1
What can the UK offer? Interstate rail. The interstate railway There is also the Rapid Transit System
network, as indicated in Figure 6.4, is (RTS) link that will connect Johor with
• National and urban rail planning relatively limited. The current network in Singapore and is expected to be
Peninsular Malaysia mainly covers the completed in 2026.20 It will have much
• Rail engineering and systems western states and is operated by KTM.17 greater capacity than the existing
design They provide the following services: Shuttle Tebrau, serving 250,000 daily
commuters.21 RTS is owned by Malaysia
• Project procurement and delivery • KTM ETS – an electric intercity Rapid Transit System, a subsidiary of
passenger rail service that connects MRT Corporation.
• Rail interior design and major cities in northwest Peninsular
passenger experience Malaysia including Kuala Lumpur, As set out, KTM currently only provides
Ipoh, Penang, and Padang Besar (on electrified rail services for the KTM
• Rail asset management the border with Thailand). The Komuter and the KTM ETS. There is an
network is currently undergoing opportunity to electrify more routes,
• Retrofitting locomotives from expansion towards the south and is noting that time and cost constraints
diesel to Hybrid-electric expected to be completed by have historically prevented greater roll
mid-2023.18 out. In the meantime, efforts are being
• Integration of digital in rail made to replace lower efficiency
design and operations • KTM Intercity - this is a long-distance conventional diesel trains with higher
diesel train service that operates efficiency diesel multiple unit trains. An
between major cities in Malaysia example of this is the Tumpat – Kuala
including Kuala Lumpur, Butterworth, Lipis connection on the KTM Intercity
Johor Bahru and Kota Bharu. service.22

• KTM Komuter - an urban electric train The only rail service in East Malaysia is
service that serves the urban areas operated by Sabah State Railway (SSR),
Klang Valley as well as Seremban in that runs a 134km single-track
Negeri Sembilan state and parts of diesel-powered line from Tanjung Aru to
Perak state. It has two lines: the a town called Tenom. As of March 2022,
Seremban Line and the Port Klang there were no plans to connect Sabah
Line. and Sarawak by rail.23

• Shuttle Tebrau - this is a cross-border Interstate rail remains an unpopular

diesel train service that connects form of transport, except for the rail link
Johor Bahru in Malaysia with between Johor and Singapore. The
Woodlands in Singapore. It operates Railwaymen Union of Malaysia has
daily with multiple trips per day. claimed that delays on the KTM Komuter
is due to the insufficient trains in service
• KTM Freight - This is a diesel freight and irregularity to the arrivals of the
train service that transports goods trains.24 On weekdays, trains arrive every
and cargo across Malaysia. It is 15–30 minutes during peak hours and up
available for businesses and to every hour intervals during off-peak
industries that need to transport large hours.25 For peak hours, this is double the
quantities of goods. 7.5 minute intervals that KTM planned in
2019.26 The limited frequency deters
• KTM Leisure - This is a special train people from using the service. To
service that is designed for leisure encourage more people to take the
and tourism purposes. It offers various train, investing in more rolling stock
packages and services that cater to could increase the frequency of trains.
tourists such as scenic tours. However, a projected increase in
demand is necessary to make the
The construction of the electrified business case stack up.
East-Coast Rail Line (ECRL) by MRL is
underway to address the longstanding
issue of inadequate connectivity
between the eastern and western states
in Peninsular Malaysia. ECRL will
connect the eastern states to Port Klang
in the west by 2027.19

102 Clean Growth Handbook Malaysia

 Urban rail. Malaysia‘s urban rail system No other state in Malaysia is currently
is concentrated in Klang Valley. There operating urban rail infrastructure. One
are two LRT lines, two MRT lines, one LRT line has been proposed by the
commuter line (KTM Komuter) and one Penang state government, who is
monorail currently in operation. The currently in negotiations with the federal
MRT2 line only just commenced government.27, 28 The Sarawak state
operations in March 2023. The government is also looking to develop its
government has ambitious plans public transport system with plans for a
to expand this infrastructure with two hydrogen-powered Autonomous Rapid
projects underway. The LRT3 line is Transit (ART) system through Sarawak
currently under construction and Metro, a subsidiary of Sarawak
expected to be completed sometime in Economic Development Corporation.29
2024. The MRT3 line has recently been The ART is scheduled to commence
approved for development. Figure 6.5 operations by 2025, making it potentially
shows all the urban public transport lines the world's first hydrogen powered
in Klang Valley. This includes the three ART.30, 31
LRT lines, two MRT lines, KTM Komuter
line and one monorail, as well as one BRT Aside from expanding physical
line (Sunway BRT) and the two Express infrastructure, rail services could benefit
Rail Links to Kuala Lumpur International from wayfinding support and the
Airport KLIA airport (KLIA Ekspress and provision of first-and-last-mile
KLIA Transit). connectivity to allow passengers to
easily make their way to and from
stations.

Figure 6.5:
Public transport map for Klang Valley32

Clean Growth Handbook Malaysia 103

 UK Spotlight:
Network Rail
Consultancy

Organisation profile: Established in Key projects include:

2012, Network Rail Consulting is a • Sydney Trains Asset Condition and
subsidiary of Network Rail, which owns Analysis: Collected data and
and operates most of the railway remotely monitored conditions,
infrastructure across England, Scotland conducted audits for asset
and Wales. Network Rail is a public management, prepared asset
sector company that operates as a management plans, and developed
regulated monopoly. It manages over asset management policies34
20,000 miles of track, as well as
thousands of signals and level crossings, • California High Speed Rail: Managed
along with 30,000 viaducts, tunnels and assets, optimised operational
bridges.33 infrastructure planning, evaluated
railway performance and whole life
Drawing on its extensive experience in costing, and developed timetables35
rail operations, Network Rail has
expanded its services to include • Metrolinx Access Planning and
international consulting through Management Support: Coordinated
Network Rail Consultancy. This access requirements with service
consulting arm offers strategic and plans, mapped operational
technical advice to clients in Asia, governance processes, created a
Australia and North America. suite of KPIs to evaluate access,
reviewed safety during railway access
Description of services: planning and management, and
• Strategic planning advisory standardised the possession
management system36
• Demand and revenue forecasting

• Railway operation solutions

• Fare and pricing recommendations

• Asset management guidance

• Training and competence

management

• Policy development and advisory

104 Clean Growth Handbook Malaysia
Other UK players in:
Rail
• Mott MacDonald offers planning, • Window Seater produces digital
simulation and management services window displays that show real-time
for rail infrastructure projects information about the journey. These
interactive displays can be
• Balfour Betty Rail provides rail customised to provide tailored
engineering services including design, information and entertainment to
construction, digital technology and passengers, enhancing their
rail plant experience

• Plowman Craven offers rail and tunnel • Amey Rail provides a wide range of
surveys, track alignment services and rail asset services including track,
structural gauging analysis signaling, electrification, and
telecommunications
• Costain provides design and
engineering, programme • Babcock Rail is the largest
management and project delivery conventional plain line track renewal
services for rail and other projects company in the UK and provides rail
engineering services
• Railway Project Services specialises in
project management and delivery for • Meteor Power supplies hybrid-electric
clients powertrain solutions to transform
freight locomotives to be more
• Unipart Rail provides technology, sustainable
product and supply chain solutions
for the rail industry including • Nomad Digital provides technology
inventory management, bespoke and solutions for rail and freight
kitting, off-site assembly and repair including on-board data centers,
real-time management, condition
• Priestman Goode designs onboard monitoring and maintenance
train layouts for improved personal
space and hygiene • Signalbox uses geospatial
visualisations to detect rail journeys
• Go-Ahead operates bus and train and provides real-time information
services across the UK. They are the via smartphone applications
largest operator of bus services in
London and is responsible for over
30% of all train passenger journeys in
the UK

Clean Growth Handbook Malaysia 105

 Buses
6.5.2
What can the UK offer? Bus service provisions. The bus system 100 E-Buses will be deployed in Kuala
in Peninsular Malaysia and East Lumpur and Penang by 2024, followed
• Bus procurement strategy Malaysia mainly includes express and by another 481 E-Buses by 2027.41 In
stage bus services. There are over 100 addition, Kuala Lumpur City Hall plans
• E-Bus and hydrogen fuel cell bus express bus service companies covering to deploy 60 locally-made
manufacturing most interstate journeys in Malaysia at a (manufactured by SKSBus Group) GoKL
relatively affordable price point.37 City EV buses by 2023.42
• Bus electrification strategy and Private bus operators like Transnasional
implementation and Aeroline offer interstate bus travel State governments in Malacca and
using express buses. These services can Sarawak have launched E-Bus services
• Retrofitting internal combustion be accessed through bus terminals in too.43, 44 In Malacca, Panorama Melaka
engine buses to electric or most major cities across both Peninsular and WSH Automotive both operate
hydrogen buses Malaysia and East Malaysia. Stage bus E-Buses. Panorama Melaka is a
services are provided by public bus state-owned bus operator, while WSH
• Fleet charging and hydrogen operators like Rapid Bus and Konsortium Automotive manages a free E-Bus
refuelling network Transnasional, which have presence in service called Singgah-Singgah Melaka
several states and cities to facilitate that serves popular tourist locations.45
• Real time journey information daily commuting. Stage buses also serve HENZ Pacific operates free E-Bus
utilisation and integration as feeder buses to urban rail services. services in Kuching, Sarawak.46 In Sabah,
the State Government has conducted an
There are several opportunities to E-Bus trial.47
improve bus service provisions in
Malaysia. The first is improving the While local operators look to procure
connectivity of stage bus networks new E-Buses, there is an opportunity to
within cities, which includes both also consider retrofitting their existing
network coverage and routes to urban international combustion engine fleet
rail services. The second is investments into electric or hydrogen buses as a
in buses, bus stop design, signage and potentially lower cost alternative.
drivers could also garner wins in higher
service frequency (refer to Figure 6.6 for Hydrogen buses. Sarawak Metro
current scenario) and user experience. introduced a hydrogen fuel-cell bus
The third is setting up more bus lanes to services in Kuching in 2020, with the
allow buses to bypass congestion faced buses sourced from China.48 There is
by private vehicles, which can further also the upcoming hydrogen-powered
incentivise more commuters to adopt ART.
bus travel.
To support this, hydrogen refueling
Electric buses. Malaysia's public bus infrastructure has started to be rolled
system is transitioning to electric buses out. Even before Sarawak Metro’s
(E-Buses), with certain bus lines already hydrogen bus service began operating,
operating them. In fact, the government Sarawak Energy worked with Linde EOX
announced in 2022 that all new vehicles to develop Southeast Asia's first green
procured by the government from 2023 hydrogen production plant and refueling
will be EVs including those for public bus station in Kuching in 2019.49 The station
services. This is a step up from the target is capable of refueling five buses and
of 50% of new government fleet to be ten cars per day. In addition, Petroleum
battery electric vehicles by 2025 in the Sarawak (Petros) opened a multi-fuel
LCMB.38 station in 2021 for private vehicles with
plans to expand50, potentially catering
Government-owned public bus to larger hydrogen vehicles like buses or
operators like Rapid Bus were early long-haul logistics trucks. If a
adopters. It deployed 15 E-Buses on its commercial hydrogen bus ecosystem in
BRT Sunway Line in 201539 and started Sarawak proves successful, there may
conducting E-Bus trials for longer routes be opportunities to expand this into
in Kuala Lumpur in 2022.40 In March other parts of Malaysia where hydrogen
2023, the organisation announced economies are being considered such as
updates to their fleet electrification Johor.
programme, consisting of two phases:

106 Clean Growth Handbook Malaysia

Figure 6.6:
Frequency of service for all Rapid KL bus
stops in Klang Valley, 202251

No. of trips (weekday)

Less than 2 4 to 6 8 to 10

2 to 4 6 to 8 10 or more

Clean Growth Handbook Malaysia 107

 Malaysia Project Spotlight:
Developing a hydrogen
transport ecosystem
in Sarawak

Organisation profiles: The Sarawak Location: Sarawak

state government is spearheading the
development of a hydrogen-based Timeframe: Sarawak aims to become
transport economy in Sarawak by the first hydrogen-driven economy in
bringing together organisations Southeast Asia by 2030
including, but not limited to:
• Sarawak Energy (SEB) is a Description: Sarawak aspires to become
state-owned utility company that a developed and high-income state by
collaborates with other companies to 2030. Having a reliable transport system
explore hydrogen fuel cell technology is vital for facilitating greater
potential productivity and economic growth in the
state. Sarawak's topography allows for
• SEDC Energy helps establish an
the production of economically viable
ecosystem for Sarawak to thrive in the
green hydrogen. Interest in hydrogen
growing global hydrogen economy,
production by national and international
including the production of
players has been growing as outlined in
electrolysers and hydrogen
Section 5.5.4. To date, Sarawak has
• Petronas runs subsidiaries like been exploring the use of hydrogen in
Petronas Hydrogen and Petronas transport more than other use cases. It
Technology Ventures to develop has initiated a trial of hydrogen fuel cell
hydrogen production facilities public buses to raise awareness of
• Petroleum Sarawak (Petros) is a hydrogen-powered vehicles. It also
state-owned company providing plans to power the upcoming ART
multi-fuel stations for conventional network using hydrogen. There are
internal combustion engine vehicles, existing multifuel refueling stations with
EVs and hydrogen vehicles hydrogen pumps in Sarawak with plans
to grow this network. As Sarawak looks
• Linde specialises in the construction
to move from trials to a commercial
of industrial plants and hydrogen
hydrogen transport network, it will need
refuelling stations
to be delivered in a way that is
• Sarawak Metro is leading the affordable for both the government and
implementation of the Kuching Urban consumers.
Transportation System, comprising 31
stations across 3 ART lines
108 Clean Growth Handbook Malaysia
UK Spotlight:
Switch Mobility

Organisation profile: Switch Mobility is Description of services:

an electric bus manufacturing company • Electric bus manufacturing
specialising in buses used for public
• Route modelling
transport. The company is
headquartered in Leeds and is a • Charger installation
subsidiary of Ashok Leyland, a • Power needs analysis
commercial vehicle manufacturer in
• Services and maintenance
India. The company was formerly known
as Optare and was rebranded to Switch • Leasing and ownership programmes
Mobility in 2021 to reflect the company’s
focus on low carbon vehicles.52 Key projects include:
• Partnered with JSW Steel in India to
With over a hundred years of experience supply electric buses for employee
in bus building and manufacturing, the transportation. Switch Mobility will
company is able to transfer this own and oversee the operations
experience to deliver quality electric including setting up the charging
vehicles to its customers.53 Switch infrastructure for a period of 12 years
Mobility has manufacturing facilities in in November 202255
the UK, India and Spain.54 The company
has a distribution network spanning 50 • Delivery of the first set of electric
countries across North America, Europe, double decker buses to the
Africa, Middle East, Southeast Asia and Brihanmumbai Electric Supply and
Australia. Transport, Mumbai, in February 202356

Clean Growth Handbook Malaysia 109

 Other UK players in:
Buses
• Transport for London (TfL) manages • Ricardo retrofits diesel-powered
the largest electric bus fleet in Europe double-decker buses into hydrogen
and regularly teams up with overseas fuel cell buses at 50% cost of a new
counterparts for knowledge transfer bus
in fields such as procurement strategy
• Voltempo develops rapid charging
• Alexander Dennis manufactures infrastructure for bus operators and
double-decker buses, including provides consultancy services such as
electric and hydrogen fuel cell models charging site analysis

• Wrightbus produces hydrogen fuel • Vital EV supplies advanced E-Bus

cell buses and provides financing and charging solutions including
leasing options for them pantograph, opportunity and depot
charging
• Steer advises on E-Bus
implementation including charging • ITM Power produces and distributes
plans for international customers green hydrogen for buses, with a
10-minute refuelling time at depots or
• Arup provides technical and advisory stations. It also develops hydrogen
services for electric buses, including fuel cell bus fleets for public use in
in-house induction charging countries like Australia
technology
• Transdev UK uses artificial
• Equipmake offers modular drive train intelligence to work out the optimum
to retrofit diesel buses into job scheduling and resource
zero-emission electric buses allocation for bus system

• Advanced Electric Machines • Trapeze Group UK provides real-time

produces electric powertrain bus predictions using live bus
technology to convert diesel-fueled movements
buses into electric ones
• The UK Collaboratorium for Research
• Kleanbus retrofits conventional buses on Infrastructure and Cities delivers
by replacing diesel engines with new technology for urban transport
electric, while keeping chassis system, for example, integrated
modification and cost to a minimum on-demand bus service combined
with parcel delivery

110 Clean Growth Handbook Malaysia

 Active transport
6.5.3
What can the UK offer? Local government leaders in active Challenges for scaling active mobility.
transport. Active transport is an With the right governance and
• Road safety design for active important element of Malaysia’s low infrastructure in place, active mobility
mobility carbon strategy, as outlined in the NTP, has high potential in Malaysia. While
LCMB and NLCCM policies. It supports several master plans are already in
• Behaviour change programmes first-and-last-mile connectivity to place, faster and successful
promoting active mobility increase public transport ridership in the implementation requires top-down
country. While national plans have design guidelines and clarity on the roles
• Active mobility business case emphasised the importance of active and responsibilities of the various
mobility, they lack clear guidelines and implementation partners. This includes
• Walking and cycling network and strong targets for implementation. the city councils, Ministry of Transport,
route planning Ministry of Works, traffic police and end
Local governments such as Kuala users.
• Bikeshare schemes Lumpur City Hall, Penang City Council
and Shah Alam City Council have taken The car-centric culture in Malaysia also
it upon themselves to lead active poses challenges to scale active
transport planning. The Kuala Lumpur mobility in the country. Amenities are
Pedestrian and Bicycle Master Plan typically located in malls that serve
2019-2028 considers interconnected large catchment areas so are designed
pedestrian walkways and bicycle lane primarily for car accessibility. Figure 6.7
networks. The Penang Bicycle Route illustrates the relationship between the
Master Plan from 2010 details the distance of travel and the mode choice
construction of a 200km bicycle lane of travellers in Kota Bharu in 2015.
network around the island. All the plans
have required extensive coordination
with multiple agencies and are currently
in implementation phase, including the
bicycle lanes in Penang that were
planned over a decade ago.

Figure 6.7:
100
Mode choice vs travel distance in
Kota Bharu, 201557 90

Drive 80
Motorcycle
70
Public Trans.
Modal share (%)

Cycle 60
Walk
50
Poly. (Drive)

Poly. (Motorcycle) 40
Poly. (Public Trans.)
30
Poly. (Cycle)

Poly. (Walk) 20

10

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Distance (km)
Clean Growth Handbook Malaysia 111
 Cyclists and pedestrians also believe Micromobility is rising. Micromobility is
drivers may forget to be vigilant, which gaining popularity in Malaysia with
makes riders and pedestrians feel around 200 vendors selling
unsafe to use the road. In 2022, it was approximately 14,500 devices in 2021,
found that 65% of Malaysians feel including e-bikes and e-scooters.59 There
unsafe while cycling, compared to just are also micromobility service providers
14% in the Netherlands.58 Therefore, such as Beam and Tryke operating in
active transport strategies need major cities like Kuala Lumpur, Penang,
integrating into urban and transport Melaka and Putrajaya. E-mobility,
planning with a focus on safety to especially shared e-bikes and
support active mobility uptake in e-scooters, is helping to encourage
Malaysia. users to take public transport. A Beam
poll in 2021 revealed that almost 50% of
its 1,800 riders were more likely to
consider public transport for longer
journeys if they could use e-scooters for
the first or last mile of their trip.59
Following the 2022 ban on e-scooters
and mopeds on public roads due to
safety concerns, micromobility service
providers are advocating for active
mobility to lawmakers and councils by
showcasing feasible safe operations at
roadshows.60

112 Clean Growth Handbook Malaysia

UK Spotlight:
Beryl

Organisation profile: Beryl is a • Guides and training: Provides safety

shared-mobility company that aims to guidelines on e-scooter via a
enable affordable and sustainable dedicated blog as well as online
commuting. It offers access to over training and face-to-face sessions to
10,000 units of active transport vehicles improve skills and confidence
across England and Wales without the
need to own one. Vehicles range from
e-scooters, bikes, e-bikes and e-cargo Key projects include:
bikes. The company has a strong • Social Digital Twin: Beryl and Fujitsu
emphasis on safety and security. are launching a research project to
improve Isle of Wight's shared
Description of services: e-scooter scheme using social digital
twin technology, which combines
• Shared mobility: Provides access to behavioural economics models and
e-scooter, bikes, e-bikes and e-cargo AI, enabling simulations that
bikes. The electric powered bikes accurately replicate human behavior
have a maximum speed of 15 miles per in real-life scenarios
hour. The scheme is backed by a
mobile application for easy finding • Bike sharing expansion: Beryl has
and unlocking of bikes and electronic announced or opened new bike
payments sharing services in Westminster, Truro,
Hereford, Studland, Plymouth and
• Laserlight: All of Beryl’s bikes are Brighton in 2023
equipped with its proprietary
Laserlight, which projects an image of • Laserlight implementation: Laserlight
a bicycle 6m ahead onto the road, is now incorporated into Santander
increasing a bike’s presence and Cycles, London’s public bike share
reducing accidents that result from programme, as well as other bike hire
neglection due to blind spots schemes in the America and Canada

Clean Growth Handbook Malaysia 113

 Other UK players in:
Active mobility
• Action Vision Zero advocates for safe • Arup consulting services on localising
speeds, junctions, crossings, cycling the business case for active mobility
space and enforcement to prevent by pulling international experiences
collision and expertise. Supports councils and
government agencies to inform and
• Brake partners with schools, support strategy development and
communities and companies to implementation of infrastructure
promote safe and healthy mobility
• Volterra is an economics and
• Dock-Y applies AI technology on land-planning advisor for transport
micro-mobility devices to improve investment such as a city-wide
safety, offering autonomous braking cycling networks or park networks for
and haptic rider alerts walking connections

• Safe Road System creates • City Infinity provides advice on street

solar-powered lighting studs for retrofits and new build layout
installation on roads to improve planning to enable walking and
safety cycling

• London Air is a mobile application • Phil Jones Associates advises on

providing real-time updates on air walking and cycling network and
quality, allowing users to plan their route planning
preferred walking and cycling routes
• Steer advises on walking and cycling
• Mobility Lab uses innovative network and route planning
technology and techniques to
facilitate community involvement in • Voi is an e-scooters and e-bike
walking and cycling planning sharing provider

• See.Sense provides cycling • Cargo Bike Share offers electric cargo

technologies and data to inform bike share services with a mobile app
better cycling network planning
• Serco designs, builds and operates
• Go.Jauntly is a community-based integrated active mobility services,
walking application that facilitates particularly cycling hire scheme
walking tours
• BetterPoints develops applications
• Brightwayz is a social enterprise that get people walking and cycling,
specialising in creating active travel reduce carbon footprints and
campaign products to inspire shifts promote ESG strategies, encourage
towards active mobility use of public transport, stimulate
healthy activity, reduce congestion
and improve air quality

114 Clean Growth Handbook Malaysia

 Private electric vehicles
6.5.4
What can the UK offer? EV adoption to date. EV adoption is still Scaling charging infrastructure. The
in its infancy in Malaysia. In 2022, EVs government aims to install 10,000 public
• EV design and development accounted for only 0.4% (2,631) of EV charging stations nationwide by
vehicles sold in the country.61 There are 2025. The Malaysian Green Technology
• Conversion of ICE cars to EVs two likely reasons for this. The first is the and Climate Change Corporation
total cost of ownership of EVs compared (MGTC) and Yinson Holdings have been
• Battery technology for EVs to internal combustion engine (ICE) rolling out their public EV charging
vehicles is higher. As of early 2023, the stations called chargEV since 2015.69 As
• Charging infrastructure cheapest EV model available in of 2022, there are 700 EV charging
development Malaysia costed around RM140,000, points, across all operators, such as
while the cheapest ICE car costed about Gentari, ChargEV and Shell.70, 71
• Battery circularity and waste RM25,000. Although it is worth noting
management that from a pure fuel use perspective, In late 2022, Malaysia established EV
there would be 11-30% cost savings from charging standards through the
charging an EV compared to refueling a Electricity Supply Act 1990 (Act 447).72
similar specification ICE car with RON 95 Type 2 (medium AC charging) is the
fuel.62 The second is the limited charging default charging head for private EVs,
infrastructure available, which is while CCS combo 1 (rapid or ultra rapid-
essential for reassuring EV drivers that DC charging) is used for E-Buses and
they can recharge their cars in the event public fast chargers for cars.73, 74 Mode 1
of low battery. In 2022, there were only (slow AC charging) and Type 1 chargers
700 charging stations across the have been banned due to inadequate
country.63 To put this into context, there power supply and lack of charging cable
are around 37,000 charging stations in lock mechanism, respectively.
the UK.64
Increasing battery manufacturing
Despite that, consumer EV sales are capacity. In 2021, MOSTI launched the
forecasted to increase by 45.6% in NanoMalaysia Energy Storage
2023.65 This is because the government Technology Initiative to commercialise
is taking steps to resolve these issues. energy storage systems for electric
One example is the provision of financial mobility as well as grid and portable
incentives, such as import and excise applications.77 The ambition is for
duty exemptions for imported and Malaysia to become a manufacturer of
locally-assembled EVs as well as road high technology energy storage
tax exemptions.66, 67 The market is components and systems. MIDA is
already responding to this. In March supporting by actively developing the
2023, Tesla Motors announced its plan battery ecosystem, including plans for
for a new office, service centres and new cylindrical battery production
supercharger networks in Malaysia.68 facilities for EVs and other industries.
Notable upcoming projects include
Samsung SDI’s plans to build a USD1.3
billion facility in Seremban78 and EVE
Energy’s plans to build a USD422 million
facility although the location is to be
confirmed.79

Clean Growth Handbook Malaysia 115

 Figure 6.8:
Projected sales of battery and plug
in hybrid EVs in Malaysia, 2016-202775

No. of vehicles (in thousands) 4

3.65

3 2.72

2.03 2.02
2 1.76
1.51 1.52

1.14
0.93 0.98
1
0.56
0.47
0.28
0.10 0.14 0.11 0.08
0.04
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Total Battery electric vehicles Plug-in hybrid electric vehicles

Figure 6.9:
Global EV charging infrastructure can be
categorised by modes, levels and types76
FACILITIES DEPLOYED IN MALAYSIA

AC CHARGING DC CHARGING

MODE 1 MODE 2 MODE 3 MODE 4

Level 1 ‘Slow’ Charging Level 1 ‘Slow’ Charging Level 2 ‘Fast’ Charging Level 3 ‘Rapid / Ultra Rapid’ Charging
8-12 hours full charge 8-12 hours full charge 1.5-5 hours full charge 10-45 minutes full charge

Uncontrolled power lead from In-cable control and protection Smart control and charging Charging station converts AC to DC
vehicle plugged into standard GPO Up to 7kW integrated with charging station Up tp 350kW
Up to 2.5kW Up to 25kW

Type 1
Up to 7.4kW AC
Level 1
Type 2
Up to 43kW AC
Level 1 & 2
Tesla
Up to 120kW AC & DC
Level 2 & 3

CHAdeMO
Up to 120kW DC
CCS Combo 1 and 2
Level 3
Up to 350kW DC
Level 3

116 Clean Growth Handbook Malaysia

Malaysia Project Spotlight:
Strengthening EV market
incentives

Organisation profile: MITI and MIDA Description: Multiple direct and indirect
play key roles in driving the EV agenda tax incentives are available for EV
in Malaysia. MITI is responsible for manufacturers. From the Revised Budget
driving the transformation of the 2023 speech, select EV-related tax
automotive industry from internal exemptions announced in 2022 have
combustion engine (ICE) vehicles to received a two-year extension and will
electric vehicles (EVs) in line with the now apply until 2025 and until 2027.
National Automotive Policy 2020.80 To
achieve this, MITI is focusing on Among the extended incentives are
increasing local production and imports investment tax allowance and the
of EVs, components and charging exemption of import and excise duties.
facilities through a suite of market This includes full import and excise duty
incentives. This is being implemented exemptions on imported Completely
through MIDA, who is supporting foreign Built Up (CBU) EVs until the end of 2025.
companies to set up EV production Local assembly of Completely Knocked
bases in Malaysia. Malaysia has taken a Down (CKD) EVs benefit from these tax
comprehensive approach to exemptions as well as sales and service
incentivising EV adoption across tax waivers until the end of 2027.82
production, charging infrastructure, use
and standards more broadly.81 This Additionally, it was announced that EV
differs from some of its regional manufacturers will be given 100%
counterparts that have strictly focused income tax exemptions on statutory
on incentivising EV production. income from 2023 to 2032 and 100%
investment tax allowance for five
Location: Malaysia years.83 Such incentives have helped to
attract foreign companies like Volvo,
Timeframe: Up to 2032 Tesla and Samsung Electronic to
produce full EV models locally, import
battery-run EVs and produce EV
batteries locally.84, 85, 86

Clean Growth Handbook Malaysia 117

 UK Spotlight:
Octopus Electric Vehicles

Organisation profile: Octopus Energy • Powerloop: A pilot Vehicle-to-Grid

Group is a British energy company with technology that enables EVs to store
10 energy-related businesses operating renewable energy during off-peak
across four continents.87 Launched in hours and discharge it back to the
2018, Octopus Electric Vehicles is the EV grid during peak times to support a
specialist arm of the group. Octopus balanced grid and reliable energy
Electric Vehicles makes it easier for its provision. Powerloop is funded by the
customers to switch to EVs by providing UK Department for Energy Security
an EV package of services, which are and Net Zero and the UK Office for
elaborated below.88 Zero Emission Vehicles, with Innovate
UK serving as the delivery partner
Description of services:
• Personal leasing package: Includes
an EV, home charger, maintenance Key projects include:
and repairs, insurance and spare tyres • Provided salary sacrifice scheme to
more than 1,500 companies including
• Salary sacrifice scheme: This Dyson, McLaren and Nando’s in the
corporate EV leasing scheme allows UK89
employees to access new EVs and
enjoy tax benefits by paying through
• Installed home chargers and offered
their gross salary smart tariff to support Sureserve
Group electrify its 600-strong fleet in
• Business contract hire: Provides EV
the UK90
leasing deals with low tax rates,
making it ideal for small companies
• Demonstrated the first successful
planning to transition to an EV fleet
integration of Vehicle-to-Grid
technology with the National Grid
• Home charging installations with EV
tariffs Electricity System Operator in the UK91

• Smart charging system: Optimises

the charging time for EVs, supporting
grid stability by balancing the supply
and demand of electricity across the
118 grid Clean Growth Handbook Malaysia
Other UK players in:
Electric vehicles
• Arrival produces a range of EVs • Gridserve builds solar farms to
including cars, vans and buses with a produce and supply energy to UK EV
focus on affordability drivers via the GRIDSERVE Electric
Highway and its own EV charging
• Jaguar Land Rover manufactures EVs infrastructure network
and has developed a solar-powered
energy storage system using • Connected Kerb specialises in
second-life EV batteries providing long-dwell charge point
infrastructure that is easily accessible
• Baro Vehicles develops connected wherever people park for extended
and autonomous vehicles. It adopts AI periods. Its products are designed to
to provide a better mobility fit into existing street furniture and
experience while addressing the issue include a smart data collection
of congestion system

• Aurrigo manufactures self-driving EVs • Gul-e facilitates EV adoption by

such as pods and shuttles to improve offering home charging facilities,
first-and-last-mile connections allowing car owners to conveniently
charge in front of their houses instead
• London Electric Cars converts vintage of paying more at external stations
or custom- build ICE cars to EVs
• Zap-Map provides a map of electric
• Pivot Power has developed a network car charging points in UK with
of grid-scale batteries and facilitates real-time availability accessible via
EV rapid charging using their battery an app
network
• Britishvolt manufactures batteries for
• Zenobe develops grid-connected EVs and has partnered with Glencore
batteries and battery charging to develop an ecosystem for battery
infrastructure to help balance supply recycling
and demand, ensure power stability
and meet consumer cost • Powervault repurposes EV batteries to
expectations store solar power in smart homes

• Instavolt offers open standard

connector EV chargers with rapid,
high-power DC charging ranging from
50kW to 150kW

Clean Growth Handbook Malaysia 119

 Biofuels
6.5.5
National biodiesel aspirations. Malaysia engine. B20 is still to be rolled out
is one of world’s largest producers of beyond Sarawak, Labuan and Langkawi
palm oil92, which is used by many states. Part of the delay is due to the
What can the UK offer?
industries across the country including Covid-19 pandemic. B30 is in the pipeline
• Feedstock appropriateness the biodiesel industry. Due to the readily for 2030 but no plans have been
accessible supply of palm oil and global committed yet.94
• Biofuels production technology market demand in biodiesel growing,
and catalysts Malaysia set out ambitions of becoming Global biodiesel demand is changing.
a regional hub for biofuels in the The country has seen a noticeable
• Project development National Biofuel Policy 2006.93 Among increase in production capacity, with
the key players in biodiesel production production for export stepping up in
are Sime Darby Biodiesel and Vance 2017 as indicated in Figure 6.10.
Bioenergy. However, the global export demand for
palm oil derived biodiesel is changing.
To drive local demand, the National The European Parliament has banned
Biofuel Policy set out a phased the use of soyabean oil and palm oil as
introduction of different biofuel blends: feedstocks for biodiesel production from
a 5% biodiesel blend (B5) in 2011, 2023, citing rising environmental
followed by B7 in 2014 and B20 by 2020. concerns. On the other hand, the UK is
However, there were delays in the roll eliminating import tariffs for Malaysian
outs due to stakeholders in the transport palm oil upon entering the
sector citing high cost of retrofitting Comprehensive and Progressive
vehicles to accommodate a higher Trans-Pacific Partnership.95 Overall, it
blend. For example, the Malaysian seems prudent for Malaysia to consider
Automotive Association claimed that diversifying its biodiesel feedstock if it
the use of biodiesel in grades higher wants to retain its position in the
than B7 could lead to sludging in the biodiesel supply chain.

Figure 6.10:
Consumption and production of biodiesel
in Malaysia, 2009-201896

1400

1200
Palm biodiesel (million litres)

1000

800

600

400

200

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018f

Production - Malaysia Production - Colombia

Consumption - Malaysia Consumption - Colombia

120 Clean Growth Handbook Malaysia

 Sustainable aviation fuels. While the In July 2021, Chinese companies
adoption of sustainable aviation fuel together with Pengerang Maritime
(SAF) is still in its early stages in Industries (Benalec) as well as Sabah Oil
Malaysia, there is increasing interest and Gas Development Corporation
and effort to promote the use of these embarked on a joint venture to develop
fuels in the aviation industry. The first vegetable oil-based biodiesel and SAF
instance was in November 2021, production facilities within Malaysia with
Malaysia Aviation Group and Petronas the first site being in Johor.100, 101
signed an MOU to reduce the carbon Furthermore, Petronas, Eni and Euglena
emissions in aviation with the use of low are studying the feasibility of a
carbon and sustainable fuels, innovation biorefinery at the Pengerang Integrated
and technology.97 Complex in Johor, which could start
operating in 2025. The proposed facility
In December 2021, Malaysian Airlines could produce up to 12,500 barrels per
operated its first SAF test flight from day of various biofuels, including SAF,
Amsterdam to Kuala Lumpur. The flight hydrogenated vegetable oil and
used a 38% blend of SAF derived from bio-naphtha.102
used cooking oil that was produced in
partnership with PETRONAS Dagangan The aviation industry is now under
and Neste.98 Later in June the same pressure for decarbonisation. In 2022,
year, Malaysia Airlines operated its first International Civil Aviation
commercial flight using a SAF blend Organization’s members have agreed to
produced by Neste.99 a goal of net-zero carbon emissions
from aviation by 2050.103 Malaysia can
potentially begin establishing itself as a
SAF manufacturing hub.

Clean Growth Handbook Malaysia 121

 UK Spotlight:
Velocys

Organisation profile: A spin-out • Altalto, UK: A commercial plant that

company of Oxford University, Velocys is a collaboration between Velocys
specialises in catalyst technology to and British Airways will convert
produce biofuels with negative carbon household and commercial waste into
emissions from waste materials and SAF, which can reduce GHG
carbon capture technology. It emissions by 70% and particulate
collaborates globally with clients, matter emissions by up to 90%. The
including SAF project developers, plant will have an annual production
feedstock owners and fuel producers, to capacity of 75.7 million litres, enough
create SAF production solutions with its to fuel 1,000 flights from London to
in-house technology. New York106, 107

Description of services: • Toyo Biorefinery, Japan: Velocys

supplied the Fischer-Tropsch reactors
• Commissioning and start-up
and catalysts for a commercial-scale
• Technology integration and support biorefinery that produces SAF using
wood biomass. In 2021, SAF produced
• Reactor and catalyst by Toyo Biorefinery was used on
Japan Airlines' flight from Tokyo to
• Engineering and testing
Sapporo108
Key projects include:
• Bayou Fuels, USA: The upcoming • E-Fuels, UK: Funded by the
plant in Mississippi will use 100% Department for Transport, this
renewable power to produce 94.6 initiative aims to explore the
million litres of transportation fuels feasibility, technical validation, site
each year. A combination of selection and preliminary-front end
renewable energy and carbon engineering and design required to
sequestration will produce fuel with a produce SAF from carbon dioxide and
carbon intensity of -375g CO2e/MJ. hydrogen, using renewable electricity.
The fuel can be blended with Velocys partners with industry players
conventional jet fuel to produce 215.8 such as Clariant Catalysts, Technip
million litres of net-zero aviation Energies and British Airways109
fuel104, 105
122 Clean Growth Handbook Malaysia
Other UK players in:
Biofuels
• Green Fuels Research is a • Vivergo Fuels converts locally-grown,
research-based business developing feed-grade wheat into bioethanol for
low-cost, sustainable biofuel mixing with petrol
feedstock and renewable fuel
chemistry • Ensus produces bioethanol using
locally sourced biomass near its
• Advanced Biofuel Solutions has plants, while also generating protein
developed a proprietary RadGas feed as a byproduct that reduces the
technology that enables efficient and need for imports
reliable conversion of household
waste and biomass residues to • Prema Energy specialises in
syngas, which can then be further developing hydrotreated vegetable
converted into various fuels such as oil biodiesel that can replace
hydrogen, methane, or diesel conventional diesel

• Nova Pangaea Technologies • ReFood specialises in the collection

develops technologies to convert and recycling of food waste into
non-food biomass, such as forestry renewable energy, including biogas
and agricultural residues, into and biomethane, which can be used
sustainable biofuels and other as alternative biofuels feedstocks
bioproducts
• Olleco collects waste food and other
• Phycobloom uses synthetic biology to organic materials and turns them into
cultivate algae that produce oils by renewable energy and sustainable
consuming carbon, water and sunlight fuels
from the atmosphere, which can be
used to fly a plane or power a ship • Gasrec provides natural gas and
biomethane fuels as an alternative to
• British Sugar is a sugar manufacturer diesel for use in heavy goods vehicles
that produces an array of and buses
co-products including electricity and
bioethanol that can be blended with
unleaded petrol

• Argent Energy produces biodiesel

from waste fats and oils including
used cooking oil, tallow and acid oils

Clean Growth Handbook Malaysia 123

 Logistics
6.5.6
Economic importance of logistics. Some port authorities have started to
Logistics in Malaysia has grown in pursue sustainability. For example, Johor
economic importance and will continue Port Authority launched a Green Port
What can the UK offer? to do so over the next five years. In 2019, Policy to guide sustainable development
logistics contributed to almost 4% of the and operation between 2014 and 2020.120
• Low carbon port planning and
country’s GDP.110 A market research The policy led to the development of a
development
report anticipates the Malaysia freight Ship Emission Management System led
and logistics market to register a by the Johor Port Authority and Universiti
• Electric and hydrogen logistics
compound annual growth rate of more Teknologi Malaysia. It is a web-based
than 4.5% between 2023 and 2028.111 application for monitoring and
• For SAF in particular, refer to
One notable upcoming project is a joint calculating greenhouse gas and air
Section 6.5.5
venture between IJM Corporation and quality emissions at the ship level. It has
China Harbour Engineering Company been used since 2017.121
• Hydrogen bunkering and
for the development of Malaysia-China
refueling facilities
Kuantan International Logistics Park.112 Port Klang Authority, Westports and
The park will be an integrated mixed Northport have adopted several
• Fleet service and maintenance
development and logistics hub located initiatives at Port Klang: solar energy, LED
technology
close to Kuantan Port, ECRL, national lighting, energy-efficient cargo handling
highways and airports. and GHG emissions monitoring.122 This led
to Port Klang being awarded the APEC
Ranked fourth in ASEAN and in the top Port Services Network Green Port award
50 globally by the World Bank’s Logistics in 2020. While Malaysia has made
Performance Index in 2018113, Malaysia decarbonisation efforts at several ports,
aims to position itself as a regional there is an opportunity to extend these
logistics hub and gateway to ASEAN. measures across all 23 ports in the
This ambition aligns with the country’s country. This could be supported by a
goal of becoming a leading national green ports strategy to facilitate
manufacturing and trade hub. The latest collaboration between the ports and
Logistics and Trade Facilitation influence supply chain solutions for green
Masterplan launched in 2015 covering ports in country. There is also an
2015-2020 will need updating to match opportunity to make use of biofuels for
this future ambition.114 cargo ships.

Maritime logistics. Malaysia's trade is Air logistics. Air logistics was steadily
well positioned for sea freight. The growing in Malaysia up until 2010123, after
country is ranked fourth in the world for which there was a decline. This is likely
liner shipping connectivity according to due to certain cargo being distributed
the United Nations Conference on Trade through other modes of logistics.
and Development.115 The country has 23
ports – ten in Peninsular Malaysia and 13 A notable development in Malaysia’s air
in East Malaysia – comprising both logistics infrastructure is the Kuala
federal and private ports.116 In recent Lumpur International Airport Aeropolis.124
years, several ports have announced In 2020, this ambitious project succeeded
plans to undergo restructuring of port in attracting the world's first Cainiao
infrastructure, upgrading of equipment Aeropolis Electronic World Trade
and facilities, and capacity expansion. Platform Hub (a logistics hub and
This includes Johor Port, Port Klang, Port cross-border e-commerce platform)
of Tanjung Pelepas, Kudat Port and outside of China.125 Examples of tenants
Sandakan Port.117, 118, 119 include Nippon, Pos Aviation and GTR.
Additionally, Penang is exploring the
The sea freight industry comprises: feasibility of establishing several logistics
• coordinating government entities e.g. hubs to improve air cargo handling
Johor Port Authority, Port Klang capacity in the state. In 2021, Sabah Air
Authority Aviation published plans to develop the
state’s first-ever fully integrated cargo
• home-grown and international port terminal.126 However, progress on this is
operators e.g. Westports Holdings, unavailable in the public domain.
APM Terminals, Northport
Moving forward, there is opportunity to
• shipping companies e.g. MISC, integrate onsite renewable energy
Maersk, CMA CGM generation such as rooftop solar and the
use of SAF for cargo planes as discussed
• sea freight service providers e.g. DSV, in Section 6.5.5.
Mitsui Soko, DB Schenker
124 Clean Growth Handbook Malaysia
 Land logistics. Land transport by road connecting the north and south of
and rail remains crucial for facilitating Peninsular Malaysia.132 In East Malaysia,
first-and-last-mile delivery of goods, the Pan Borneo Highway linking Sabah
whether to the manufacturing facilities and Sarawak is set to open in 2026.
or to logistics hub for exporting. Today,
Malaysia has 290,100 km of roads127 and As road logistics will continue to play a
1,655km of rail route length128. It is no large role in land logistics, opportunities
surprise then that road logistics to adopt lower carbon vehicles need
accounts for more than 95% of land exploring. One option to explore is
logistics.129 long-haul hydrogen vehicles for
logistics, which are not yet commonly
The road and rail freight industry is used in Malaysia but have been on the
made up of: rise in other countries such the UK, Italy
and Germany. Since there has been a
• rail operators e.g. KTMB, MMC Cargo, focus in Malaysia on the transport use
ERL case of hydrogen, it is a promising area
of development for road logistics.
• fleet and equipment manufacturers
e.g. SMH Rail, Alstom Currently for rail logistics, it is only KTM
Kargo (the routes are the same as KTM
• rail and road freight service providers interstate) and Sabah State Railway
e.g. Biforst Group, DocShipper Asia, lines that are used for freight transport.
DB Schenker Even though the existing rail freight
network is limited, there are still
• last mile delivery companies e.g. opportunities to maximise the use of it
Lalamove, Ninja Van, Pos Malaysia as it currently only operates at 30%
capacity.133
The country’s road network, which
comprises state, federal and There are several rail freight expansion
agency-owned roads, has grown by initiatives in the pipeline. The upcoming
300% since the mid-2000s.130 Even with ECRL spans 665km and is anticipated to
this growth, there are further plans to transport 26 million tonnes of cargo
extend the road network to improve between east and west states of
connectivity and alleviate traffic Peninsular Malaysia, along with 5 million
congestion. In Klang Valley, this includes passengers.134 Noting that rail logistics is
the construction of the Petaling Jaya a lower carbon options than road
traffic dispersal elevated highway (PJD logistics, the government is looking at
Link), the Bangi-Putrajaya Expressway upgrading and increasing rail
(BPE) and the Kuala Lumpur northern connections between ports, airports and
dispersal expressway (KL NODE), which industrial areas, as put forth in the
have recently been approved.131 12MP.135 However, these plans are yet to
Additionally, the Central Spine Road is be developed in detail.
currently under construction and is
expected to be completed by 2026,

Figure 6.11:
Commercially available hydrogen trucks
– Hyundai XCIENT hydrogen fuell cell
truck (Left) and Nikola Tre FCEV hydrogen
fuell cell truck (Right)

Clean Growth Handbook Malaysia 125

 Malaysia Project Spotlight:
Kuantan Port Green
Policy

Organisation profile: Kuantan Port energy efficiency, sustainability of the

Consortium is the concessionaire of port's ecosystem and intensification of
Kuantan Port, an all-weather, digitalisation in line with 4IR. The policy
multi-cargo deep seaport facing the outlines five objectives to be achieved
South China Sea.136 The port is currently by 2030: reducing air pollution levels,
at 50% capacity and projected to decreasing carbon footprint, controlling
increase cargo handling further by 2027. marine pollution in port areas,
To accommodate this growth, the port implementing energy and water
has expanded its capacity to handle 50 resource efficiency measures, and
million tonnes per year for Phase 1, 70 establishing a systematic waste
million tonnes for Phase 2 and 90 million management programme.137 Kuantan
tonnes upon completion. The ECRL rail Port has already implemented a range
line, which is expected to be ready in of sustainable practices, such as
2027, is set to connect Kuantan Port and utilising eco-friendly machinery like
Port Klang in Selangor. This will make rubber tyred gantry hybrids to cut down
Kuantan Port a major hub for Peninsular on carbon emissions by 30%. The port
Malaysia’s east coast logistics has also restricted vehicular access and
infrastructure.137 automated its operations to further
reduce its environmental impact. On the
Location: Pahang more digital side, the port is pursuing
various transformation initiatives,
Timeframe: Kuantan Port is committed including IoT for data acquisition and
to sustainability through the Kuantan analysis, presenting an opportunity to
Port Green Policy, which aims to guide implement a digital twin, which experts
the development and operation of a have stated as potentially improving
safe, sustainable, smart and fuel usage for shipping by improving
commercially viable port by 2030.137 journey and port operation efficiency.138
Next on the table for Kuantan Port is
Description: The Kuantan Port Green exploring renewable energy options and
Policy, launched in January 2022, aims providing lower carbon fuel for ships.
to align the port's development with the
Malaysian government’s commitment to

126 Clean Growth Handbook Malaysia

UK Spotlight:
Unitrove

Organisation profile: Unitrove is a • Future Infrastructure and Vessel

company that offers Evaluation and Demonstration
infrastructure-as-a-service with a focus (HI-FIVED): The HI-FIVED consortium
on zero-emission solutions. They comprises Unitrove, Acua Ocean, the
specialise in developing innovative Port of Aberdeen, the University of
technologies related to the usage, Southampton, Zero Emissions
storage and distribution of hydrogen for Maritime Technology, Composite
the marine industry, helping to reduce Manufacturing and Design, Trident
the industry's carbon footprint. Marine Electrical, and NASH
Maritime. This consortium has
Description of services: received over GBP3.8 million in
funding from the Department of
• Technology development Transport and Innovate UK to develop
autonomous vessel and bunkering
• Asset management infrastructure technologies for liquid
hydrogen. The project aims to
• Consulting on net-zero logistics establish a green shipping corridor
solutions between Aberdeen and the Orkney
and Shetland Islands using
Key upcoming projects include: hydrogen-powered autonomous ships
• Liquid hydrogen bunkering facility: In for cargo transportation140
2021, Unitrove became the first
company to deliver a liquid hydrogen • Zero-emission multi-fuel station:
bunkering facility for zero-emission Unitrove led a consortium, that
ship refueling. Liquid hydrogen includes Acua Ocean, which won
enables Unitrove to target the heavier government funding to develop the
portion of the shipping fleet, where world's first zero-emission multi-fuel
they can have a more significant station. The station will offer options
impact compared to light-duty for powering hydrogen and electric
vessels powered by compressed ships including liquid hydrogen,
gaseous hydrogen or batteries139 compressed gaseous hydrogen and
electric charging141

Clean Growth Handbook Malaysia 127

 Other UK players in:
Logistics
• HR Wallingford provides sustainable • Zedify is a logistics firm that employs
port planning and engineering lightweight EVs, including electric
development services, including cargo bicycles and trikes, to achieve
environmental impact assessment, emission-free package delivery. Its
vessel access, dredging and localised microhubs situated within
operational and storage requirements urban centers facilitate same day
deliveries
• Zero Emissions Maritime Technology
is a project management company • DPD has implemented the use of
focused on decarbonising ports electric vans for its parcel deliveries
through the implementation of zero- and is actively growing its all-electric
emission energy systems and fuels like fleet in the UK initially with future
hydrogen plans for global fleets

• Tevva specialises in the development • Ricardo provides engineering services

of electric and hydrogen fuel cell for clients in the maritime industry
trucks, and provides turnkey ranging from feasibility to detailed
hydrogen refuelling solutions to help design, analysis, greenhouse gas
facilitate the transition to low carbon emissions reduction and performance
fleets improvements

• ZeroAvia develops hydrogen-electric • Glacier Energy designs, installs and

powertrain technology to replace maintains hydrogen fuel cell systems
conventional engines for aircraft and refueling stations for both
propulsion commercial and industrial use

• Artemis Technologies designs and • Planet Platforms provides an array of

builds high-performance platforms including custom-made
zero-emissions electric propulsion options to facilitate logistic fleet
system and vessels access and vehicles service and
maintenance
• Gnewt by Menzies Distribution uses
100% EVs for parcel deliveries, cutting • For rail freight in particular, see
GHG emissions by 67% per parcel. It Section 6.5.1
is also installing rapid charging
system across its 65 depots

128 Clean Growth Handbook Malaysia

 Summary of transport sector
6.6 collaboration opportunities
UK-Malaysia collaboration Demand drivers Expertise offered Examples of
opportunities in Malaysia by the UK UK players

Developing integrated • Frequent traffic congestion • Transit planning • Costain

transport plans and
logistics strategy at • Irregular public transport • Walking and cycling network • Volterra
both national and local service and route planning
levels • TfL
• Limited first mile, last mile • Behaviour change programmes
connectivity in cities promoting active mobility • Dock-Y

• NTP aims to improve • Feasibility studies and demand • Mobility Lab

accessibility and inclusivity of forecasting
transport systems • See.Sense

Adopting resilient asset • Current rail services are • National and urban rail • Network Rail
management strategies unreliable due to asset planning Consultancy
for rail breakdown
• Project procurement and • Plowman Craven
• Operational maintenance costs delivery
can be high for operators • Unipart Rail
• Rail asset management
• Amey Rail

• Nomad Digital

Rolling out E-Buses and • Current public transport buses • E-Bus and hydrogen fuel cell • Alexander Dennis
developing associated in Malaysia are mostly diesel bus manufacturing
charging infrastructure powered • Wrightbus
• Bus electrification strategy and
• In 2022, the government implementation • Switch Mobility
announced all new vehicles
procured by the government • Retrofitting internal combustion • Voltempo
from 2023 will be EVs including engine buses to electric or
public bus services hydrogen buses • Equipmake

• Fleet charging and hydrogen • Advanced Electric

refuelling network Machines

• Kleanbus

Scaling biofuel and SAF • Biodiesel in Malaysia is mostly • Researching feedstock • Velocys
production from globally produced from palm oil as a appropriateness
recognised sustainable feedstock • Green Fuels Research
sources • Biofuels production technology
• SAF usage can be scaled for air and catalysts • Phycobloom
transport and air logistics
• Biofuel project development • Argent Energy

• ReFood

• Olleco

Developing green port • Ports in Malaysia have been • Low-carbon port planning • Zero Emissions Maritime
infrastructure gradually adopting green port and development Technology
policies and practices
• Hydrogen bunkering and • Acua Ocean
• Steps to decarbonise the fuel refueling facilities
used by cargo ships are yet to • Unitrove
be taken
• Glacier Energy

• HR Wallingford

Clean Growth Handbook Malaysia 129

 Market entry considerations
6.7 for UK companies
Demand drivers. The transport sector is Key next steps. The following is an
expected to present many opportunities outline of key steps that can be taken by
in the upcoming years as it looks to a UK company intending to enter the
decarbonise existing infrastructure as transport market in Malaysia.
well as deliver new low carbon
infrastructure. Among the opportunities • Finding a local distributor/partner.
are EVs, rail projects and sustainable For recommendations on potential
ports. There are several key partners, UK companies may reach
considerations for UK companies when out to the UK Department of Business
looking to enter the Malaysian transport and Trade, investment promotion
market. agencies such as the Malaysian
Investment Development Authority or
Local partner. For UK companies industry associations such as the
intending to export their products such Malaysian Automotive Association.
as vehicle spare parts or even vehicles
to Malaysia, the best way to go about • Applying for permits and licenses. UK
this is to use a local distributor. Having a companies intending to operate in
local distributor helps the UK company Malaysia must register with the
to navigate customs clearance and Companies Commission of Malaysia.
handling compliance matters. Having a For companies that also intend to
local partner also benefits firms offering tender for government contracts,
professional services such as transport they must register with the Ministry of
planning consultancy services.142 Some Finance with the appropriate codes
government contracts limit the that reflect the types of contract that
percentage of shareholding in a a company can tender for.
business entity that is tendering for a Specifically for vehicle companies, an
government consultancy contract. Import License from the Ministry of
Investment, Trade and Industry is
Having a local partner with at least 70% required.143
Malaysian shareholding will also qualify
an entity to apply for the Green • Vehicle type approvals. All new
Technology Financing Scheme for green models of vehicles such as cars, buses
technology user companies. For green and motorised scooters must obtain
technology producer companies, the approval from the National
foreign shareholding is limited to is 49%, Committee for Type Approval and
with the remaining 51% to be taken up Homologation before they can be
by local shareholding. sold in Malaysia. Committee members
include the Ministry of Transport and
Public sector collaboration. Road Transport Agency.144
Government-linked companies operate
the major rail networks and bus • Business model. For EV
networks in the major cities. However, manufacturers intending to enter the
there are still opportunities for Malaysian market, it is worth noting
collaboration between the public and that the Malaysian government
private sector, especially in terms of heavily subsidises fuel for its people.
transport planning and rolling out low With a combination of cheap fuel and
carbon buses and trains. car-centric infrastructure, it could be
challenging to persuade Malaysians
to switch to EVs. One option to
consider is to have leasing
programmes that reduce the total
cost of ownership for consumers.

Manufacturers of vehicles and transport

infrastructure components can refer to
the market entry considerations in
Section 8.7 of this Handbook for
manufacturing-related considerations.

130 Clean Growth Handbook Malaysia

Section 7

Sector: Buildings

Buildings covers the material and energy use during the construction and operation of
different building typologies. In this section, a buildings sector market overview is
provided for Malaysia covering key policies, governance, trends shaping the sector
and a summary of current initiatives in different subsectors.

Clean Growth Handbook Malaysia 131

 Buildings sector highlights
7.1 and ecosystem
• Malaysia's building regulation is • District cooling systems are gaining
based on the Uniform Building popularity as evidenced by their
By-Laws 1984 under the Ministry of adoption in several ongoing and
Local Government, which aims to upcoming projects such as Sunway
standardise building regulations, South Quay Commercial Precinct 2.
regulate standards and speed up There is an opportunity to consider
approvals. The current version of the renewable and clean energy sources
by-laws does not integrate low like geothermal and green hydrogen
carbon approaches. to implement low carbon systems.
Limited governance around delivering
• The private sector owns 60% of the such systems is emerging as a major
construction works value in Malaysia, challenge.
dominated by large contractors.
There is a positive trend towards • Low carbon construction in Malaysia
sustainability to attract and retain is gaining momentum as the industry
tenants. faces increasing pressure to reduce
carbon emissions. The use of recycled
• Green building certification in construction materials and timber
Malaysia has been on the rise due to needs scaling by putting appropriate
increased awareness among tenants standards in place to drive demand.
as well as incentives like the Green The adoption of industrialised building
Investment Tax Allowance, Green systems has gained some traction
Income Tax Exemption and the Green with companies like Gamuda having
Technology Financing Scheme. dedicated factories in place. Cheap
Certifications like GBI and GreenRE labour in construction continues to
promote green buildings, but they are challenge the commercial viability of
currently voluntary except for industrialised building systems.
developments targeted by the local
government planning process.

Malaysia's clean growth stakeholder

ecosystem in buildings

Public Sector Private

and Government Sector

Clean
Industry Growth Non-
governmental
Associations Stakeholder Organisations
Ecosystem

Academia and
Financial
Research
Institutions
Institutions

132 Clean Growth Handbook Malaysia

 Buildings sector clean growth
7.2 policy and plans
Uniform Building By-Laws. Malaysia’s construction materials and green
UK Success Story: The UK has building regulation is primarily based on product directories. Challenges such as
dedicated programmes and the Uniform Building By-Laws (UBBL) high costs, absence of regulatory
guidelines on decarbonisation across 1984, as amended, which provides drivers, inadequate sustainability
the buildings sector guidelines on the procedures for building standards for building materials and a
• The Heat and Buildings Strategy plans and development control. It was lack of skilled workforce persist.
2021 introduces a path to net zero gazetted in 1985 as a subsidiary law Recommendations include
by 2050 for the UK’s residential, under the Street Drainage and Building standardisation of certification and
commercial, industrial and public Act 1974 (Act 133). The main objectives of audit tools, enforcing waste reduction
sector buildings. It focuses on the UBBL were to standardise building and increasing recycled material
improving the energy efficiency of regulations for the whole of Malaysia, content in construction materials
buildings and switching high regulate standards and speed up towards a circular economy.2
carbon sources of heat and building approvals. It is worth noting
cooling to low carbon alternatives. that the current version of the UBBL National Energy Efficiency Action Plan
does not cover low carbon approaches 2016-2025. The buildings related scope
• The Net Zero Buildings Council has in building design.1 of the NEEAP includes driving energy
been formed by the government, efficiency in industrial, commercial and
industry and the third sector to National Physical Plan 4. The Ministry of residential buildings. The 10-year
focus on the delivery and Local Government Development (MLGD) roadmap, which began in 2016, covers
implementation of the issues the National Physical Plan five initiatives that look to reduce
government’s Heat and Buildings typically every five years, and is energy consumption in buildings:
Strategy as well as the Net Zero currently in its fourth iteration. It is the
Strategy (as amended). highest development planning • Promotion of 5-Star rated appliances
document, which translates the
• Recent updates to the building strategic and sectoral policies of the • Minimum energy performance
regulations have been driven by nation in physical and spatial terms. standards (MEPS)
the Future Homes Standard and National Physical Plan 4’s planning
the UK Government's strategic period runs from 2020 to 2040 with an • Energy audits and energy
focus on reducing carbon immediate implementation period from management in buildings and
emissions from the building sector. 2020 to 2025. It aims to achieve industries
These efforts are aligned with the sustainable development through three
government's commitment to main thrusts including dynamic urban • Promotion of co-generation
achieve net zero carbon by 2050. and rural growth, spatial sustainability
and climate change resiliency, and • Energy efficient building design
inclusive and liveable community
development. The plan is interpreted at Malaysian Standards. Sustainable
the state level in structure plans and at building design emerged in Malaysia
local level in local plans to ensure through the promotion of the Malaysian
accurate and consistent planning. Standard (MS) 1525:2019 Energy
Efficiency and Use of Renewable Energy
Green Technology Master Plan for Non-residential Buildings. It was
2017-2030. The 11MP (2016-2020) originally published in 2007 by Standard
earmarked green growth as a game and Industrial Research Institute of
changer for the trajectory of the nation’s Malaysia (SIRIM) to promote energy
growth. The Green Technology efficient building designs. It remains a
Masterplan (GTMP) builds on the 11MP by voluntary standard to this day but has
creating a framework to facilitate the gained recognition and acceptance
mainstreaming of green technology. The across the buildings sector. The
plan acknowledges that the building counterpart for residential buildings is
sector has achieved some level of MS2680:2017 Energy Efficiency and Use
successful in sustainable buildings of Renewable Energy for Residential
through green building ratings, Buildings, which was published much
industrialised building systems (IBS), later in 2017.
sustainable design practices, green

Clean Growth Handbook Malaysia 133

 Buildings sector governance
7.3
Governing bodies. At the national level, At the local level, governance falls under
Figure 7.1: the Ministry of Works (MOW) is the MLGD, who is responsible for urban
Process flowchart for building plan responsible for public works, highways wellbeing, town planning, landscape,
approval
and the construction industry. Agencies strata management and country
Submit under MOW’s purview with regards to planning. Guided by the NPP, MLGD
Building and
Infrastructure buildings include the Board of Quantity assists states in the preparation of their
Plans to Local
Authority Surveyors that regulate the quantity respective state structure plans and
Amendment
surveying profession, the Construction local governments with their local area
1. Dept. of Irrigation
and Drainage Industry Development Board (CIDB) that plans. Local government is typically
Local Authority 2. Dept. of
Reviews Environment is a statutory body established to build responsible for approving development
Application and 3. Tenaga Nasional
Distributes to Berhad (TNB) capacity in the construction industry, plans and building blueprints. The local
Relevant 4. Public Works Dept.
Departments for 5. Telekom and the Board of Architects Malaysia building approval process is provided in
Comments 6. Water Supply Dept. and Board of Engineers Malaysia who Figure 7.1.
7. Fire Dept.
8. Sewerage Services are responsible for the registration and
Dept.
Endorsement 9. Alam Flora regulation of architects and engineers, Pioneers of sustainable buildings. The
by Building (If required)
Approval respectively. modern notion of sustainable buildings
Committee
evolved in Malaysia when a group of
Over the last couple of years, CIDB has consultants, academia and
Yes Objection/ expanded its work to look beyond representatives from the building
Comments
traditional construction industry topics industry formed the Malaysia Green
No like standards, quality and safety, to Building Council – a local subsidiary of
Council Endorsement
include environmental sustainability. It the World Green Building Council. The
and Approval has embarked on several initiatives, council was officially registered as an
three of which include: organisation to promote sustainable
buildings in Malaysia in 2009. This was
• In 2016, CIDB introduced the formally supported by two professional
Malaysian Carbon Reduction and organisations: the Malaysian Institute of
Environment Sustainability Tool Architects (PAM) and Association of
(MyCREST). The purpose of this tool is Consulting Engineers Malaysia (ACEM).3
to encourage developers to
incorporate carbon assessments into In the same year, PAM and ACEM
their development process, with the launched the first local sustainable
aim of promoting the construction of building rating system called the Green
low-carbon built environments Building Index (GBI), complying to the
World Green Building Council standards.
• In 2018, the organisation developed In 2013, a second sustainable building
INFRASTAR, a sustainable rating system was launched called
infrastructure rating tool, which has Green Real Estate (GreenRE). This was
been adopted by several developed by the Real Estate and
organisations including MRT Housing Developers’ Association
Corporation Malaysia (REHDA) with the support of
government ministries including the
• More recently in 2021, they published (now) MNRECC, MOSTI, MGTC and
an inventory of embodied carbon MIDA. Another popular rating system
factors to help drive the whole life used in Malaysia is the globally
carbon agenda recognised Leadership in Energy and
Environmental Design (LEED) developed
by the U.S. Green Building Council. It
tends to be favoured by multinational
corporations operating in the country.

More recently, the Sustainable Energy

Development Authority (SEDA) has been
driving the Zero Energy Building
Programme as part of its energy
management and renewable energy
remit.

134 Clean Growth Handbook Malaysia

 Trends shaping the buildings
7.4 sector
Green
•
building certification for new While the two local ratings share some
Figure 7.2: builds. Green building certifications are assessment criteria, they have some
Uptake of green building certifications voluntary at this point in Malaysia differences. GBI considers a broader
in Malaysia over the years except for certain developments that range of categories while GreenRE
the local government specifically target. includes an additional criterion for
Yet, the supply and demand for green evaluating a development’s embodied
• In 2013, GBI certified
2013 190 developments,
buildings continues to rise as carbon. The choice of which rating
while LEED certified 12 organisations seek to reduce their GHG system to use ultimately depends on the
emissions across the buildings value developer's preferences as well as
chain. Developers see the benefits in factors such as the building type,
• Fast forward to 2021, terms of higher rental yields, tenant desired level of certification and
GreenRE certified a 2021 attraction and reputation. Tenants seek associated costs.
total of 174 projects
opportunities to reduce their utility costs
• As of 2022, GBI had
certified 638 and create productive work Green building incentives. The
developments, GreenRE
had certified 209, and
environments. introduction of incentives has
2022 LEED had certified 140, encouraged developers to pursue green
covering various
development types for
One of the most iconic green buildings in building certification. In 2014, the Green
both private and public Malaysia is the Energy Commission’s Investment Tax Allowance (GITA) and
buildings
Diamond Building, which obtained the the Green Income Tax Exemption (GITE)
first GBI platinum rating as well as were introduced. Companies interested
Singapore’s Green Mark in 2010.4 in acquiring green technology assets
Another example is the Ilham Tower by listed in the MyHIJAU directory or
IB Tower, which obtained GBI pursuing green technology projects can
certification and Green Mark Gold apply for the GITA, which allows 100% of
rating. Malaysia’s latest skyscraper, qualifying capital expenditure incurred
Merdeka 118, has earned triple platinum to be offset against 70% of statutory
ratings under GBI, GreenRE and LEED.5 income in the year of assessment.
Educational institutions like Heriot-Watt Service providers listed in the MyHIJAU
University and shopping malls such as Directory may also apply for the GITE,
Melawati Mall have also sought green which allows a 70% tax exemption on
building certification. statutory income in the year of
assessment.
Green building certification for
retrofits. Aside from new builds, There is also the Green Technology
property developers are increasingly Financing Scheme (GTFS), a soft loan
investing in retrofits to meet green facility that supports the adoption of
building standards. Tenants are actively green technologies in different sectors.
seeking green-certified buildings to not For buildings, the scope covers green
only reduce their carbon footprint in line technology adoption in the construction,
with their corporate goals, but to also management, maintenance and
provide a healthy and comfortable demolition of buildings.7
working environment for staff. Examples
of existing building obtaining the Rise in sustainability services. In
certified rating from GBI includes the Malaysia, there has been a noticeable
Menara SME Bank, Chowrasta Market surge in the provision of building
and the Capital Square tower.6 sustainability services in the sector.
Conventional engineering consultants
Uptake of different green building such as G&P have started to provide
certifications. In Malaysia, GBI, green building certification services.8
GreenRE and LEED are the three Facilities managers like SSRV now
commonly used rating systems for green provide integrated sustainability
buildings. LEED is globally recognised solutions to improve the resource
and hence favored by developers efficiency.9 The diversification into
seeking international tenants. There is sustainability services is down to client
no clear preference among developers demand and using it as a market
for the local ratings – GBI or GreenRE. differentiator.

Clean Growth Handbook Malaysia 135

 Malaysia Project Spotlight:
Organisations targeting
green building
certification

Organisation profile: Penang State Organisation profile: Sunway Group is a

Government is the governing authority conglomerate that operates across
for Penang state. It is responsible for the various industries. Sunway Group is
administration and management of committed to sustainability and
economic development, social welfare, corporate responsibility. Its initiatives
education, healthcare, infrastructure include green buildings, community
and environmental protection for the development and philanthropy.
state.
Location: Malaysia
Location: Penang
Timeframe: 2025 onwards
Timeframe: 2020 onwards
Description: Sunway has committed to
Description: The Penang State developing all new buildings completed
Government released a report on its from 2025 onwards to be green-certified
3-year plan covering 2018 to 2022, to reduce their impact on the
including the following targets for the environment. They are not new to green
buildings sector: buildings having Sunway City certified
• achieving GBI Gold certification for by GBI as Malaysia’s first sustainable
all new developments starting in 2020 township in 2012 and Sunway City
Iskandar Puteri Township in 2019. Four
• increasing the use of recycled buildings under Sunway Real Estate
materials in construction to 30% Investment have also been green
certified, namely, Sunway Carnival Mall,
• having all green hotels in Penang Sunway Pinnacle, Sunway Resort Hotel
and Sunway Lagoon Hotel.10 The Group
• reducing water consumption by 20% Green Building Policy also mentioned
their target to monitor and review the
• installing LED smart street lighting in possibility of obtaining green
all areas certification for existing buildings.

• planting 200,000 trees on Penang

Island
136 Clean Growth Handbook Malaysia
Section 7.5

Subsector market
overviews
This section provides market overviews of three key buildings subsectors. Within the
subsectors, UK-Malaysia collaboration opportunities and examples of upcoming
projects in Malaysia have been identified.

Clean Growth Handbook Malaysia 137

 Zero energy buildings
7.5.1
What can the UK offer? Zero energy buildings. Since 2002, SEDA In 2022, UniKL British Malaysian Institute
has been driving the Zero Energy announced plans to develop Malaysia’s
• Low carbon building regulations Building Rating Scheme under their Low first NZEB located in Gombak. The
and guidelines Carbon Building Facilitation three-storey academic building, which is
Programme.11 It involves the expected to be completed in 2023, will
• Low carbon architecture and development of super energy efficient have a roof fitted with a
engineering buildings integrated with renewable semi-transparent 168kWp integrated
energy. Figure 7.3 indicates the three solar PV system. It is expected to
• Smart buildings energy ratings that can be achieved: Net Zero produce twice as much energy
management Energy Building (NZEB), Nearly Zero (220MWh/year) compared to its
Energy Building (nZEB) and Ready to go expected consumption (106MWh/year),
Zero Energy Building (ZEB READY). with excess electricity exported back to
the grid.12
The ambition of achieving ZEB status, or
close to, has been demonstrated by A handful of ZEB ambitions have also
several public and private sector been seen outside the rating system. For
examples, including: example, Kuala Lumpur City Hall (DBKL)
will be working with the C40 Cities
• GreenTech Malaysia’s Green Energy Finance Facility to work on reducing the
Office that saved 86% of energy energy consumption of 27 public
(nZEB) buildings through renewable and energy
efficiency measures.13
• Energy Commission’s Diamond
Building that saved 70% of energy Without supportive guidelines, the
(nZEB) uptake of ZEB will remain slow in the
market. To address this, government
• Panasonic’s Green Warehouse that and industry stakeholders need to work
saved 70% of energy (nZEB) together to establish guidance
documents that signpost approaches
and case studies.

Figure 7.3:
SEDA’s ZEB rating scheme11

Assesment Scheme
Level of Archivement ZEB
for Buildings
(% of CO2e Reduction) Scheme
TOWARDS CARBON NEUTRAL

(diamonds)
TOWARDS ZERO ENERGY

Renewable
100% Carbon Neutral Net ZEB (NZEB)
Energy
to Near ZEB (nZEB)

to Ready for ZEB

Energy Efficiency
to

to
Energy Conservation to

138 Clean Growth Handbook Malaysia

 Energy efficiency measures. The To increase the adoption of building
government has been proactive at scale solar, the government introduced
driving energy efficiency improvements the Net Energy Metering (NEM)
in buildings. Under the 11MP and programme that allows excess solar
12MP, Energy Audit Conditional Grants energy generated by residential,
were launched as a finance facility for government and private buildings to be
commercial and industrial building exported back to the grid, with one-
owners with a minimum energy to-one credits that the generator can
consumption of 100,000 kWh/month to use to offset their next electricity bill.
undertake energy audits to inform Now at NEM 3.0, a total quota of up to
energy saving plans.14 Between 2016 and 800 MW has been allocated between
2018, 109 commercial buildings 2021 and 2023. Plans beyond 2023 will
received the Energy Audit Conditional likely depend on the success of this
Grant. The audits revealed an average programme, the overall state of the
of 18% potential energy savings energy market and changes in
measures per participating government policies.
organisation.15 The energy efficiency
market is expected to grow as In terms of renewable heat sources,
awareness of energy audits grow. The solar hot water systems are often used in
increased interest in smart building both public and private buildings such
systems is also likely to drive energy as the Royal Selangor Gold Club,
efficiency in buildings.16 DBKL Sports Complex and Kompleks
Kewangan Malaysia.
Renewable energy adoption. The
uptake of solar PV systems in Malaysia is In conclusion, while renewable energy
generally limited to larger developments adoption at building scale in Malaysia
attracting higher profile tenants. The has seen some progress, there is still
most common form of renewable room for growth. Programmes such as
electricity installation at building scale is NEM 3.0 are a step in the right direction
solar PV on rooftops or building but continued efforts to support the
structures. One example is the Green business case for adoption are still
Energy Office Building by GreenTech required.
where they mounted rooftop solar on the
atrium ceiling to provide both renewable
energy and diffused daylight. Private
buildings such as Monash University’s
campus also installed solar panels to
reduce their dependance on the grid.17

Clean Growth Handbook Malaysia 139

 Figure 7.6:
Examples of energy efficiency and
renewable energy features in existing
buildings in Malaysia18, 19, 20, 21, 22, 23, 24, 25

Green Energy Office, Malaysian Green Technology Diamond Building, Energy Commission, Putrajaya
And Climate Change Corporation, Bangi

Built-in solar PV to generate Double glazed windows to Tilting façade to allow self Obtaining 50% of its
energy and provide daylight prevent heat from entering shading for the lower floors daylight needs from natural
to the atrium the building lighting

Mirrored light shelf that Exterior solar PV system at car Sunken garden provides Installed thin film solar P
enables diffused daylight to park for additional energy natural ventilation to the panels with a total capacity
penetrate the building generation parking area in the of 71.4kWp
basement

Low Energy Office, Ministry of Natural Resources,

House P14, Private owner, Putrajaya
Environment and Climate Change, Putrajaya

Well insulated building Green landscape to Natural cross ventilation

Interior design for improved
façade and roof design absorb heat and daylight
daylight utilisation

Façade design with split Optimisation of building Energy efficient interior Optimisation of building
window design and integrated orientation for minimal solar design and appliances orientation for minimal
shading with light shelves heat gain solar heat gain

140 Clean Growth Handbook Malaysia

UK Spotlight:
Anderson Green

Organisation profile: Anderson Green is Key projects include:

a building services consultancy that • Victoria Leisure Centre, Nottingham:
provides mechanical and electrical Compliance assessment with
design and ratings services. They make engineering services, overall building
use of the latest design approaches and design, energy and thermal envelope
software to deliver their working performance
including building information modelling
(BIM), Revit MEP, IES VE and HevaComp. • University of Huddersfield,
Huddersfield: Mechanical and
Description of services: electrical design including energy
• Feasibility and infrastructure reduction measures
assessment on energy, sustainability,
infrastructure, engineering, design • Meersbrook Hall, Sheffield: Feasibility
and cost study for mechanical and electrical
services including energy and
• Energy and carbon consultancy to sustainability improvements
meet net zero energy and carbon
policy requirements • Anns Grove Community Hub,
Sheffield: Energy, sustainability,
• Building physics modelling to mechanical and electrical design with
understand the effect of temperature, proposals including solar controlled
humidity, daylighting, and air quality replacement glazing units, solar
on the building design panels and rainwater harvesting
system
• Consumption implications to building
design

• Mechanical and electrical design and

cost consultancy

• BIM consultancy

Clean Growth Handbook Malaysia 141

 Other UK players in:
Zero energy buildings
• The UK Green Building Council is a • Bere:architect is an award-winning
membership organisation that design studio with 20 years of
published the Net Zero Carbon experience in sustainable design and
Buildings Framework to provide clarity high performing architecture
on the definition of net zero carbon
buildings • Greener Solutions Group provides full
turnkey solutions for retrofit projects
• The UK Government Property Agency including the assessment, design,
is responsible for managing coordination and advisory. They also
government property. They published offer feasibility studies for renewable
the Government Workplace Design energy and building energy
Guide, which includes the net zero assessments
and sustainability annex
• Quimera Energy Efficiency is a smart
• Low Energy Transformation Initiative building company focused on
is a voluntary network of environment providing energy consumption
professionals in the built environment, reduction, utility costs and carbon
working to understand and develop emissions services
the actions needed to meet the UK
climate change targets • Metrikus is a hardware agnostic smart
building platform that provides a
• ACA Architects prioritise cloud-based IoT platform for
sustainability in their designs and aim real-time monitoring and analytics of
to create buildings that have a building performance data, including
positive impact on the local energy consumption and indoor
community environmental quality

• Avanti Architects is an architecture • University of Nottingham’s Creative

firm that has a strong focus on Energy Homes serves as a living
creating environmentally friendly test-site to investigate the integration
buildings including retrofitting and the of energy efficient technologies into
adaptive reuse of existing structures houses

• Ben Cunliffe Architects portfolio

showcases a range of contemporary
and traditional designs, with a focus
on creating sustainable, energy-
efficient buildings

142 Clean Growth Handbook Malaysia

 District cooling
7.5.2
What can the UK offer? District cooling system. A district undertake a DCS feasibility study with
cooling system (DCS) is a centralised the support of the C40 Cities Finance
• Regulatory and governance system that distributes cooling capacity Facility that will look at drawing water
frameworks in the form of chilled water or other from the Gomak River to cool two
medium from a central source to municipal towers in the city centre.28, 13
• District cooling system multiple buildings through a network of
technologies underground pipes for space cooling. It Diversifying energy sources. DCS in
is an energy efficient air-conditioning Malaysia has historically relied on
• District cooling developers and system with a 20% and 35% reduction in centralised energy from the national
operators electricity consumption compared to grid to power systems. As published in
conventional water-cooled MyRER, SEDA has identified hydrogen
• Integration of decentralised air-conditioning systems and air-cooled and geothermal as potential energy
energy sources systems, respectively. sources to consider in Malaysia. This
presents an opportunity to integrate
Current uptake of district cooling lower carbon, decentralised power
systems. In Malaysia, the sources in DCS systems. In Malaysia, the
implementation of DCS has been potential for geothermal energy is
complex due to the lack of national concentrated in the state of Sabah,
standards, regulation and governance while the hydrogen hubs are likely to be
to support its development. Despite this, concentrated in Sarawak and Johor.
there are several existing and planned Infrastructure design and cost will need
projects that have been led by the to be explored further.
market. One of Malaysia’s largest
district cooling providers is Gas District Governance moving forward. To scale
Cooling, who serve Precincts 1, 2, 4 and 5 the adoption of DCS in new and existing
in Putrajaya, Kuala Lumpur City Centre master plans, several recommendations
and Kuala Lumpur International to address governance challenges exist
Airport.26 at both the national and local level. At
national level, a centralised
There are several upcoming coordination body could be created to
developments that will be adopting DCS. oversee the implementation and
In July 2022, Sunway Property signed a regulation of DCS. National district
contract with ENGIE Services Malaysia cooling policies could be developed that
for a 25-year build, own, operate and establish the standards for the design,
transfer agreement for a district cooling construction and operation of DCS. At
system in the upcoming Sunway South the local level, high potential locations
Quay Commercial Precinct 2 mixed-use to implement DCS could be identified by
development.27 In January 2023, Kuala government through the district local
Lumpur City Hall (DBKL) included a RM7 plans with planning incentives put in
million allocation in its 2023 climate fund place if master planners were to adopt a
budget for investments in green DCS in these locations.
technology. Among plans is to

Control Room
Figure 7.6: Centralises remote supervision and
DCS schematic29 monitoring of the equipment

Production Plant

Energy Transfer Station Ice Chilled

Storage Water
Transfers Cooling from the primary Storage
to the secondary network in each
building
Energy Storage
Limits the use of machines to
produce cooling during peak hours

Clean Growth Handbook Malaysia 143

 Malaysia Project Spotlights:
Iskandar Malaysia
District Cooling Systems

Organisation profile: Iskandar Regional Description: The Low Carbon Society

Development Authority (IRDA) is a Blueprint for Iskandar Malaysia 2025
federal government statutory body talks about establishing distributed
whose functions includes recommending energy systems like DCS. Following a
planning policies at the federal, state feasibility study, several existing
and local levels along with developing developments have already been
strategies to improve infrastructure, identified with potential to adopt DCS:
skills and technology research. They are the Medini Township, Kulai Sedenak
also involved in the promotion and Data Exchange and the Iskandar Halal
facilitation of investment opportunities Park. For the Medini Township, the
of Iskandar Malaysia to the general mapping exercise revealed the potential
public and potential investors.30 for multiple zones, albeit with the
constraint of high land prices that may
Location: Southern development limit the placement of energy centre
corridor in Johor state, covering five locations.
local authorities Johor Bahru City
Council (MBJB), Iskandar Puteri City In addition to the three areas set out
Council (MBIP), Pasir Gudang City above, the assessment of area cooling
Council (MBPG), Kulai Municipal Council demand density indicated the Central
(MPK) and Pontian Municipal Council Business District as an opportunity area.
(MPPn) However, a feasibility study has not
been conducted yet.
Timeframe: District cooling system to be
achieved by 2025 IRDA is now looking into the importance
of integrating DCS in the urban planning
process with the help of planning
authorities.

144 Clean Growth Handbook Malaysia

UK Spotlight:
Metropolitan

Organisation profile: Metropolitan UK Key projects include:

has been a provider of district energy • Design and management of King’s
and multi-utility networks for new-build Cross London district heating and
developments across England, Scotland cooling network commissioned in 2018
and Wales since 2006. It is part of the
BUUK Infrastructure Group, which also • Contracted under a 40-year
includes GTC and Power On agreement to operated Postmark
Connections. It has over 75 energy London district energy infrastructure
service company (ESCo) contracts encompass a heat network and a
across the UK, supplying over 50,000 gas-fired CHP energy plus cooling
homes and 250,000m² of commercial networks
buildings with decentralised energy
networks. It is one of the first to be • Led the decarbonisation plan to
registered with The Heat Trust at its install two 500 kW Air Source Heat
launch in 2015. Pumps for Coronation Square London
regeneration project that provides a
Description of services: decentralised, low carbon heating
• District energy: A stand-alone or a solution
part of a complete multi-utility
package for new housing and • 25-year contract to adopt and
mixed-use developments operate the Wembley Park London
large-scale district heating network
• Multi-utility networks: Gas, serving 5200 new homes
electricity, water, wastewater and
fibre broadband networks

• ESCo contracts: Involve constructing,

adopting and operating thermal
generation plant and CHP systems for
decentralised energy networks

Clean Growth Handbook Malaysia 145

 Other UK players in:
District cooling
The Heat Network Industry Council is The Heat Trust is a non-profit
made up of key stakeholders from organisation that promotes rigorous
across the heat network industry to standards on heat suppliers. It also
support the UK government achieve its collaborates with suppliers to foster best
vision in achieving a sustainable heat practices, innovation and continuous
network. They focus on creating improvement. Registered participants
investments and jobs, accelerating include:
carbon reduction and maintaining
standards for system providers. • VitalEnergi provides sustainable
Members include: energy solutions with services ranging
from energy generation, distribution,
• The Association for Decentralised supply and consumption
Energy is leading the trade management. They have developed
association for decentralised energy the vTherm cooling interface unit
across the industry by advocating the designed to improve the efficiency of
need for investment in energy district cooling scheme
efficiency, low carbon heating and a
flexible energy system • SSE Energy Solutions is a company
based in the UK that offers
• energetik is a company wholly owned sustainable energy solutions to
by the Enfield Council responsible for businesses and public sector
providing heat and hot water directly organisations. Their services include
to homes and businesses in Enfield distributed energy infrastructure
from local source and business energy supply

• L&Q who are a housing association • Pinnacle Power develops and

operating in Greater London. They operates sustainable energy solutions
have a communal heating network, including the design, build, operate
which is managed by L&G Energy and finance of district energy
networks
• Switch2 is a provider of end-to-end
solutions for district heating schemes • Loka Energy operate the district
including prepayment, metering and heating network that provide
billing services residents and businesses of
Greenwich Peninsula with cost
effective and low carbon heating

146 Clean Growth Handbook Malaysia

 Low carbon construction
7.5.3
What can the UK offer? Embodied carbon considerations. Scaling the adoption of low carbon
Cement and steel are essential concrete faces both supply and demand
• Material science ingredients of buildings and challenges. Supply-side challenges
infrastructure. However, the production include the disconnect between
• Recycled construction materials of these materials accounted for 6.5% construction waste suppliers and
(2.3 billion tonnes) and 7% (2.6 billion cement manufacturers, the higher costs
• Timber construction tonnes) of global GHG emissions, associated with novel products and
respectively, in 2020.31 Other limited awareness of the need to
• Modular construction construction materials such as change. The main demand-side
aluminum, glass and asphalt are also challenge is the reluctance to change
high in carbon content. As a result, specifications because it becomes an
developers are increasingly looking at added risk to engineering individuals
embodied carbon as a key metric for signing off drawings and plans. Industry
sustainable building design and standards that set out recycled
construction. concrete compositions would address
many of these challenges. Larger
In 2021, CIDB published an inventory of engineering and construction players
embodied carbon factors for 500 with the capacity to drive innovation
different construction materials and such as Gamuda are still actively
building elements along with their costs promoting the adoption of cement
to help stakeholders compare substitutes and green concrete solutions
environmental impact and cost of to drive market acceptance in the
solutions available in the market. The absence of standards.32
document also outlines how the
embodied carbon of construction Timber. Although a major timber
materials can be calculated. Although producing country, Malaysia’s use of it
the inventory is not exhaustive, it as a construction material has been
provides a solid foundation for further limited. Part of this is down to the fact
expansion. that Malaysia is largely a hardwood
producer whereas softwoods are the
Low carbon concrete. In Malaysia, the predominant choice for engineered
demand for low carbon concrete is timber production. Another part is down
quickly rising especially amongst to the lack of building standards as
developers that are looking at whole life limited knowledge exists on timber
carbon. YTL Cement, one of the largest properties and design. Currently,
cement manufacturers in Malaysia, has structural timber is mainly used for
launched a greener line of products. formworks and trusses, which face
One of the products, ECOCem, is said to tough competition from steel and other
contain a minimum of 25% recycled materials. In 2011, the Malaysian Timber
material and has 20-50% lower Industry Board established Galeri
embodied carbon compared to Ordinary Glulam, the first building in Malaysia to
Portland Cement. Their other product, use glue-laminated timber beams as its
ECOConcrete, contains 20-60% less main structure.33 Even with such
embodied carbon compared to CEM I demonstration projects, the uptake of
concrete. timber has remained low in Malaysia.

Clean Growth Handbook Malaysia 147

 Industrialised building systems. From 2008, public projects with a value
Industrialised building systems (IBS) is a exceeding RM10 million and private
modular construction method that projects worth over RM50 million were
assembles prefabricated building mandated by the Public Works
components onsite. It speeds up the Department to use IBS.35, 36 The adoption
construction process while reducing of IBS by developers in Malaysia has
waste. However, since its introduction in gained some traction since then. One
1966, the reluctancy to move away from example is the 714-unit Rumah
conventional construction techniques Selangorku Jade Hills development in
that are based on access to cheap Kajang, where Gamuda employed IBS
labour has been the greatest obstacle methods to achieve a significant
for its adoption.34 reduction in construction time.37 SP Setia
is another major developer employing
IBS to produce precast component in its
developments.38 While public
procurement can drive adoption of IBS
in certain developments, other
economic and commercial challenges
need addressing to scale adoption.

Figure 7.7:
Prefabricated building components that
can be assembled onsite39

148 Clean Growth Handbook Malaysia

UK Spotlight:
Wernick Group

Organisation profile: The Wernick Key projects include:

Group specialise in the sale, hire and • West Bridgford School, Nottingham:
manufacture of modular and portable Music block using modular building
buildings. They offer a wide range of solution
temporary and permanent
accommodation solutions for various • Kingston Hospital, Kingston: The new
industries including education, Willow Building is modular building
healthcare, construction and events. and a full turnkey solution including
Wernick's products include modular complete groundworks package and
classrooms, offices, welfare units, toilets, service connection
shower blocks and storage containers.
They also provide bespoke design and • Southmead Hospital, Bristol: Modular
installation services, as well as office building including mechanical
maintenance and refurbishment options and electrical heating and cooling
for their clients. With over 85 years of plant, LED light panels and energy
experience in the industry, Wernick has monitoring technology
established a reputation for quality,
innovation and sustainability in their • Gartree High School, Oadby: Modular
products and services. buildings that matched the look and
feel of the existing surrounding
Description of services: buildings
• Design and manufacture of modular
buildings

• Refurbishment and repair services

• Groundworks and landscaping

services

• Project management and site services

Clean Growth Handbook Malaysia 149

 Other UK players in:
Low carbon construction
• Kedel manufactures products using • UK Timber specialises in the supply of
recycled and recyclable materials high-quality construction timber
such as recycled plastic cladding products for use in various projects
including structural timber, outdoor
• Cemfree specialises in developing timber, indoor timber and fuels
and manufacturing ultra-low carbon
alternatives to traditional cement • Timbersource provides sustainable
timber with sustainable timber
• Low Carbon Materials has developed certification that confirms the timber
carbon negative lightweight comes from sustainably managed
aggregate for carbon zero blockwork forests

• Kenoteq’s product, K-BRIQ, is a • Ethical British Timber provides

resource efficient construction brick sustainably sourced high quality
made from inert recycled input timber products including sawn
materials that has less than 5% timber, planed timber and fencing
carbon footprint of a traditional clay
brick • Arup has provided innovative and
cost-effective timber design services
• Hanson is a supplier of low carbon for buildings across the world
heavy building materials to the including for Mactan Cebu
construction industry, which includes International Airport Terminal 2 in the
aggregates, asphalt, cement and Philippines
concrete – see spotlight in Section
8.5.4 • Modulek specialises in the design,
manufacture and installation of
• Tarmac is a sustainable materials innovative modular buildings
supplier in construction material,
building products and recycling • Thurston Group is a modular and
services portable building designer and
manufacturer in the UK, offering a
• Timber Development UK helps to turnkey solution to various sectors
expand tools, training and guidance with bespoke designs, flexible
to support the sustainable timber finance, and high-quality, sustainable
supply chain products

150 Clean Growth Handbook Malaysia

 Summary of buildings sector
7.6 collaboration opportunities
UK-Malaysia collaboration Demand drivers Expertise offered Examples of
opportunities in Malaysia by the UK UK players

Update of building • No mandatory low carbon or • Low carbon building regulations • UK Green Building
regulations and wider sustainability and guidelines Council
guidelines in relation to requirements in building
zero energy buildings regulations • Low carbon architecture and • UK Government Property
and low carbon engineering Agency
construction • Limited scope for the standards
that exist. MS1525 only covers • London Energy
the energy efficiency and use of Transformative Initiative
renewable energy in non
residential buildings while
MS2680 only covers the energy
efficiency and use of renewable
energy in residential buildings

• No city level benchmarking for

energy efficiency of buildings

Design and delivery of • Lack of specific guidelines to • Low carbon architecture and • ACA Architect
low carbon buildings aid implementation of low engineering design
including architecture, carbon buildings • Avanti Architects
engineering and smart • Smart building energy
energy buildings • Lack of expertise and concrete management • Bere:architect
action plan causing reluctancy
for developers to participate in • Greener Solutions Group
new construction methods
• Quimera Energy
Efficiency

• Metrikus

• University of Nottingham

Governance and • Increased interest in district • Regulatory and governance • Pinnacle Power
implementation of cooling by government frameworks
district energy systems authorities such as the Iskandar • AMP Clean Energy
Regional Development • District cooling system
Authority and Kuala Lumpur technologies • VitalEnergi
City Hall as well as major
developers such as Sunway • District cooling developers and • Energetik
Group operators
• OVO Energy
• Limited consideration of • Integration of decentralised
governance and delivery renewable energy sources • SSE Energy Solutions
structure

Adoption of low carbon • Increasing focus on reducing • Material science • Kedel

construction materials embodied carbon
and construction • Recycled construction • Cemfree
techniques • The need for building methods materials
that are more cost and time • Cemex
efficient • Timber construction
• Low Carbon Materials
• Modular construction
• Kenoteq

• Hanson

• Timber Development UK
UK Timber

• Stora Enso

• Arup

• Modulek

• Thurston Group

Clean Growth Handbook Malaysia 151

 Market entry considerations
7.7 for UK companies
Demand drivers. The buildings sector in Key next steps. The following is an
Malaysia is going through an exciting outline of key steps that can be taken by
time with the supply and demand of a UK company intending to enter the
green buildings both increasing. Below buildings market in Malaysia.
are several market entry considerations • First point of contact. For UK
for UK companies intending to do companies looking for a first point of
business in Malaysia. contact, there are several
organisations for different purposes:
Local partner. It is not essential for a UK Ministry of Works (in charge of the
company to have a local partner for construction industry, the Board of
goods distribution. However, having a Engineers and Board of Architects),
local partner can ease the process of Malaysia Green Building Council
obtaining product certifications. For (manages GBI certification), Real
companies offering professional Estate and Housing Developers’
services, having a local partner is a must Association Malaysia (representative of
for local professional engineer sign-offs private property developers),
on drawings and to be eligible for Construction Industry Development
government contracts due to foreign Board (promotes building sustainability
shareholding restrictions. Having a local and enforces the Malaysian Standard
partner with at least 70% Malaysian on importation of construction
shareholding will also qualify an entity to products), and the Sustainable Energy
apply for the Green Technology Development Authority (manages the
Financing Scheme for green technology feed-in tariff for renewable energy and
user companies. For Green Income Tax zero energy building programme).
Exemption, at least 60% of the equity
• Finding a local partner. For companies
must be held by Malaysians, while for
selling goods, one option is to work with
Green Investment Tax Allowance, there
a distributor company with an
is no shareholding restriction.40 There
extensive reach in the market. For
are no mandatory shareholding
companies offering professional
restrictions on companies bidding for
services, one option is to acquire a
non-government contracts.
local engineering consultancy practice
or obtain partial ownership of one to
While Malaysia uses international
avoid having to start a business from
certifications such as LEED, it also has
scratch. The alternative is to set up a
local ones such as GBI and GreenRE. UK
joint venture. For ventures in district
companies will need to be well-versed in
cooling, it will be useful for district
these local building's sustainability
cooling companies to partner with a
certifications if they have local clients
construction company in Malaysia so
that are pursuing these certifications.
that the partnership can offer
Partnering with a local company can
end-to-end district cooling services.
support with a more detailed
understanding of these local • Licencing and registration. It is
certification requirements. recommended for a UK company to
incorporate a local company in
Competition. Local companies Malaysia with the Companies
providing the same services as UK Commission in Malaysia as this
companies are likely to win on price. provides the most flexibility for
Therefore, it is suggested for UK business expansion in Malaysia.
companies to focus their business Another registration that must be done
development efforts for buildings being to be eligible for government contracts
led by international developers or that is registration with the Ministry of
will have international tenants that are Finance.41 Engineering consultancy
less price sensitive. UK designers, practices must also register with the
engineers and consultants that have Board of Engineers Malaysia.
already had to meet the UK’s more Manufacturers of buildings materials
stringent low carbon building standards and components can refer to the
should be well-placed to differentiate market entry considerations in Section
themselves for these opportunities. 8.7 of this Handbook for
manufacturing-related considerations.

152 Clean Growth Handbook Malaysia

Section 8

Sector: Manufacturing

Manufacturing covers industrial production of different materials, components and

products. In this section, a manufacturing sector market overview is provided for
Malaysia covering key policies, governance, trends shaping the sector and a
summary of current initiatives in different subsectors. For each subsector,
UK-Malaysia collaboration opportunities and a selection of upcoming projects in
Malaysia have been identified.

Clean Growth Handbook Malaysia 153

 Manufacturing sector
8.1 highlights and ecosystem
• The main clean growth opportunities • Opportunities to scale include
currently being pursued in increasing data through audits or
manufacturing include shifting digital solutions for manufacturers to
to energy efficient equipment and drive energy efficiency measures, and
facilities, producing green certified developing and adopting quality
products and transitioning to a standards for remanufactured
circular economy. The petrochemicals, products.
agribusiness, food, electronics and
electrical appliances, metals and • There are also opportunities in
building materials industries have renewable energy and transition fuels,
been especially active. resource efficiency and CCUS, which
have not been given much focus to
• These opportunities are being date. These opportunities could
promoted by national policies like the support the country’s eco industrial
National Energy Efficiency Action park development ambitions.
Plan as well as some sector specific However, for renewables, energy
policies, for example, in the forecasting and stabilising
automotive industry. Several targets technologies would be required to
are identified in these policies address intermittency issues that
including to have at least 50,000 certain production lines could not
manufacturing products and services work with.
MyHIJAU certified by 2030 and to
double the number of green SMEs in • CCUS is still in its infancy, although as
manufacturing by 2030. it matures, hub and cluster networks
will need developing with appropriate
• There are opportunities in energy business models related to carbon
efficiency and circular economy to be transport, utilisation and storage.
scaled or explored, particularly to There will also be a need to consider
increase trade competitiveness. CCUS and hydrogen in a more
integrated way.

Malaysia's clean growth stakeholder

ecosystem in manufacturing

Public Sector Private

and Government Sector

Clean
Industry Growth Non-
governmental
Associations Stakeholder Organisations
Ecosystem

Academia and
Financial
Research
Institutions
Institutions

154 Clean Growth Handbook Malaysia

 Manufacturing sector clean
8.2 growth policies and plans
Green Technology Master Plan National Fourth Industrial Revolution
UK Success Story: First major 2017-2030. The Green Technology Policy 2019- 2025. In support of the 12MP
economy to publish an industrial Master Plan (GTMP) acknowledges the and SPV 2030, the National Fourth
decarbonisation strategy need for sustainable growth in Industrial Revolution (4IR) Policy was
• The Industrial Decarbonisation manufacturing.1 It promotes the uptake developed to drive socioeconomic
Strategy was published in 2021 of green energy by manufacturers, development of the country through the
with the aim of working towards creation of green product certifications ethical use of 4IR technologies such as
the country’s net zero target while and shift to green manufacturing artificial intelligence, internet of things,
also creating a thriving industrial processes. GTMP sets the target to cloud computing and big data analytics.
sector. This includes the full range double the number of green SMEs in The application of 4IR technologies is
of UK industry sectors from metals manufacturing by 2030 (to 17,000 expected to increase productivity by
and minerals, to chemicals and companies) relative to a 2011 baseline. 30% across all sectors by 2030 with
paper. The strategy covers policy Around 95% of companies in the intentions to support socio-
approaches to grow the market manufacturing sector are SMEs, which environmental wellbeing for all.
for low carbon products, explains this target. Although this policy was developed with
innovation and technologies the intention of contributing to the
needed to transform industrial The MyHIJAU Mark is a certification socio-environmental wellbeing agenda,
processes, and co-benefits with mark created in 2012 by the Malaysian the link between specific technological
the trade and levelling up agenda. Green Technology and Climate Change applications and specific
Council (MGTC) to support green socio-environmental impacts is not
• The Ten Point Plan for a Green technology implementation in Malaysia. stated.
Industrial Revolution that was MyHIJAU Mark made it easier for
published in 2020 provided the ministries and agencies, as well as National OGSE Industry Blueprint
basis for the Industrial companies and individuals, to identify 2021-2030. It aims to enhance the value
Decarbonisation Strategy. At the products and services certified against and competitiveness of oil and gas,
time, it represented the first signal local and international environmental services and equipment (OGSE)
for manufacturers and financiers standards.2 As of June 2022, the total companies. Companies are encouraged
to increase innovation and private number of products and services to adopt strategies to promote
investment in local production of registered under the MyHIJAU Mark sustainable business operations and
wind turbines, zero emission reached 10,613, surpassing the 10,000 robust environmental, social and
vehicles and heat pumps for green target in place by 2022. MGTC aims to governance (ESG) frameworks tailored
buildings, among other have at least 50,000 products and to OGSE.4
applications. services certified by 2030.3 Tax rebates
through the Green Investment Tax National Automotive Policy 2020. One
Allowance (GITA) and the Green Income of the aims of the National Automotive
Tax Exemption (GITE) are available to Policy (NAP) is to ensure sustainable
incentivise companies to certify their development of the local automotive
products and services and become industry. The clean strategies mentioned
listed under the MyHIJAU Directory. are the promotion of environmentally
friendly technologies to address
National Energy Efficiency Action Plan pollution such as EV production and the
2016-2025. The National Energy promotion of remanufacturing activities
Efficiency Action Plan (NEEAP) identifies to reduce waste.5
several product and industrial building
level priorities for the sector. The
priorities include labelling 5-star rated
energy efficient appliances like
refrigerators and air-conditioners,
adopting energy efficient motors in
industrial equipment, undertaking
energy audits and the development of
energy efficient industrial facilities.1 This
is especially important for producers of
energy-intensive industries such as the
manufacturing of semiconductors,
inorganic chemicals and oleochemicals.

Clean Growth Handbook Malaysia 155

 Manufacturing sector
8.3 governance
Governing bodies. The Ministry of This includes the Malaysian Investment
Investment, Trade and Industry (MITI) is Development Authority (MIDA), which
responsible for providing policy oversees local and international
direction in the manufacturing sector as investment promotion, especially in
well as approving manufacturing manufacturing products and services.
licences. MITI has several agencies
within it as shown in Figure 8.1 that cover
trade and investment, industries and
market segments, finance, research and
technology, skills and best practices,
and standards and accreditation.

Figure 8.1:
MITI and the agencies within it6 Ministry of Investment
Trade and Industry

Industries and market

Trade and investment Finance
segments

Malaysian Investment Malaysia Steel Malaysian Industrial

Development Authority Institute Development Finance

Malaysia External Trade Halal Development Exim

Development Corporation Corporation Bank

InvestKL

Standards and
Research and technology Skills and best practices
accreditation

SIRIM Malaysia Productivity Department of Standards

Berhad Corporation Malaysia

Malaysia Automotive Majlis Rekabentuk National Measurement

Robotics and IoT Institute Malaysia Council

156 Clean Growth Handbook Malaysia

 Trends shaping the
8.4 manufacturing sector
The sustainability wave. The awareness mainly from companies in
Figure 8.2 : and adoption of decarbonisation trade-exposed industries. This includes,
ESG ratings of public listed industrial
strategies in Malaysia’s manufacturing but is not limited to, the manufacture of
products and services companies,
sector has been growing.7, 8 Several semiconductors, rubber and rubber
20229
international manufacturing companies products, chemicals, agriproducts,
with operations in Malaysia have minerals and textiles.
Number of Companies

30
already made net zero commitments
25
including Panasonic by 2030, Intel by These trade-exposed companies often
20
2040 and BASF by 2050. Larger local face stricter international standards and
15
10
companies are starting to move away must grapple with increasing carbon
5
from pursuing energy and resource pricing instruments worldwide such as
0 efficiency measures for purely cost the carbon border adjustments in the EU
1 2 3 4 reduction, to recognising these described further overleaf. For example,
FTSE Russell ESG Score measures as part of their business Top Glove – a rubber glove
resilience strategy. manufacturer – established their
Sustainability Roadmap 2022-2025 as
Six ‘industrial products and services’ part of their journey to become a more
companies listed on Bursa Malaysia sustainable business. Petronas is the
received the highest 4-star ESG score by only manufacturing government linked
FTSE Russell in 2022 out of a total of 65 company in Malaysia that has pledged
industrial firms featured.9 This includes to achieve net zero by 2050. FGV
Cahaya Mata Sarawak, Sunway, Press Holdings, an agribusiness and food
Metal Aluminium Holdings, Scicom, company, and Terengganu Silica
Scientex and V.S Industry. Upgrading to Consortium, a silica mining company,
energy efficient equipment and facilities are some examples of companies that
is the most common decarbonisation have committed to science-based
measure being pursued by these decarbonisation targets through the
companies. A few companies are driving Science Based Targets initiative.
circular economy related measures. For
example, Press Metal Aluminium Trade partners and agreements.
Holdings aims to increase the recycled Figure 8.3 shows that Malaysia’s top five
content and reused materials used in trading partners by value in 2020 were
production and Scientex aims to China (14.5%), Singapore (13.7%), the
increase the recycled content and United States (12.7%), Hong Kong (6.9%)
biodegradability of its plastic and Japan (5.8%). As per Figure 8.4,
packaging. Nature regeneration and Malaysia’s top five export products
renewable energy related measures are included integrated circuits, refined
being pursued by one or two firms. petroleum, palm oil, rubber apparel and
petroleum gas.
While larger companies may be
embracing decarbonisation, many In January 2023, Malaysia signed its first
smaller companies have been relatively green economy framework agreement
reluctant for several reasons. Firstly, with Singapore.10 The agreement will
they may require education and allow for the co-development of
guidance on what decarbonisation standards such as for EVs and
means for their business. Secondly, they renewable energy technologies. It
may not have the financial capacity to provides an opportunity for
invest in low carbon technologies and manufacturing companies to share
measures. knowledge on sustainable business
practices and network for potential
Trade-exposed industries leading the collaborative demonstration projects to
way. Manufacturing companies across bring solutions towards
Malaysia are experiencing different commercialisation. It will also provide a
sustainability pressures depending on platform for stakeholders to discuss
their public or private status and global technical and regulatory issues
market positioning. So far, the sector concerning low carbon solutions such as
has witnessed decarbonisation efforts CCUS and hydrogen.

Clean Growth Handbook Malaysia 157

 Figure 8.3 :
Malaysia’s top trading partners
by trade value, 202011

Figure 8.4 :
Malaysia’s top export products by
trade value, 202011

Figure 8.5 :
Top European trading partners by trade
value, 202011

Figure 8.6 :
Top Malaysian exports to the UK by
trade value, 202011

158 Clean Growth Handbook Malaysia

 Japan has been a long-standing partner Lastly, it is important to note that
to Malaysia on sustainable growth with protectionist measures promoting
the “Enhanced Partnership for a New domestic low carbon products by some
Frontier“ that the countries signed in key trading partners could have an
2010.12 The countries have recently impact on Malaysian exports. This
discussed potentially strengthening their includes the US, which introduced a
cooperation on green technology package of subsidies and tax credits to
aspects. In September 2022, Petronas boost domestic manufacturing capacity
signed an MoU with the Ministry of for EVs, batteries, SAF and green
Economy, Trade and Industry of Japan hydrogen, among other things, through
and with Japan Bank for International its Inflation Reduction Act in August
Cooperation on developing CCUS, 2022.18 This could impact Malaysia’s
hydrogen and ammonia value chains.13 established automotive and battery
industries, and emerging biofuel and
Malaysia also trades with Europe, hydrogen industries. The EU too could
representing 11.1% of the total exported implement a similar deterrence in its
value in 2020. Figure 8.5 shows that the upcoming Net Zero Industry Act.19
top three export countries include
Germany, the Netherlands and the UK. Growing interest in eco-industrial
The main products exported from parks. The development of
Malaysia to the UK include rubber eco-industrial parks (EIPs) is being
apparel, aircraft parts and furniture as promoted by the 12MP.20 The United
shown in Figure 8.6.11 In 2020, the Nations Industrial Development
UK-Malaysia Joint Committee on Organisation, World Bank Group and the
Bilateral Trade and Investment Deutsche Gesellschaft für Internationale
Cooperation was established to Zusammenarbeit created an
promote trade and investment between international framework for EIPs in 2017
the two countries.14 (later amended in 2021), which they
define as industrial areas that promote
Malaysia and the EU have also cross-industry collaboration to increase
strengthened trade relations recently. In economic, social and environmental
December 2022, the EU-Malaysia performance.21 There is an emerging
Partnership and Cooperation interest to develop EIPs in both
Agreement was signed. The intention is brownfield and greenfield sites in
to enhance dialogues between Malaysia Malaysia.22 There are over 600 industrial
and its European trade partners parks throughout the country, some of
including Germany, the Netherlands, which already possess EIP
France and Italy on policies concerning characteristics such as shared facilities
trade, environment, energy and climate and utilities infrastructure.23 Industrial
change.15, 11 parks are increasingly certifying
themselves against local green building
The EU’s Carbon Border Adjustment rating systems such as GBI and
Mechanism will come into force in GreenRE, which are discussed further in
October 2023. A tax will be imposed on Section 7. The gross floor area of
the following product imports from GBI-rated industrial developments has
non-EU countries based on its embodied grown significantly from 37,160m2 in 2013
carbon: iron and steel, cement, to 873,300m2 in late 2022.24
fertilisers, aluminium, electricity, and
hydrogen.16 A small proportion of Green manufacturing guidelines. To
Malaysia’s manufacturing sector will be further support industries in their
impacted; in 2019, iron and steel sustainability pursuits, MNRECC and
accounted for 1.6% of Malaysia’s total MGTC jointly published the “Green
exports to Europe.17 However, the Practices Guidelines for Manufacturing
manufacturing sector might be affected Sector” in December 2022 on the
to a greater extent in the future if other MyHIJAU website.25 The document
export products like palm oil, rubber, covers several clean growth practices
and electrical and electronic products that manufacturers can adopt. It covers
are included in the list of taxed energy efficiency and renewable energy
products. measures to target operational carbon
emissions reductions and use of reused
and recycled materials to tackle
embodied carbon emissions. It will be
interesting to track the uptake of these
practices over the upcoming years and
their contribution to the clean growth
agenda.

Clean Growth Handbook Malaysia 159

 Section 8.5

Subsector market
overviews
This section provides market overviews of four key manufacturing subsectors. For
each subsector, UK-Malaysia collaboration opportunities and a selection of
upcoming projects in Malaysia have been identified.

160 Clean Growth Handbook Malaysia

 Energy efficiency
8.5.1
What can the UK offer? Industry perspectives on energy In addition to energy audit related
efficiency. A survey conducted by Sapio findings, recommendations were
• Energy auditing and surveys Research revealed that of the 100 provided to add new design features to
Malaysian industrial companies that the MyHIJAU website to enable it to
• Energy monitoring and responded, 23% were likely to make inform energy efficiency lending
management energy efficiency improvements in decisions by financial institutions and
2022.26, 27 The survey also revealed that catalyse the energy efficiency market
• Smart building energy 70% of respondents consider cost through increased information
management savings as the main incentive for them transparency. These recommendations
to invest in energy efficiency and 38% of are yet to be implemented.
• Energy efficiency business respondents considered they had
models sufficient information regarding what In cases where energy audits are not
measures to take. undertaken, energy efficiency measures
have also been informed by GHG
Data led energy efficiency measures. emissions baselines. For example, the
Data on energy consumption and global provider of semiconductor
energy leakages is critical to base assembly and test services, Unisem,
operational changes and investments identified energy efficiency measures
on that improve energy efficiency. that reduce operational emissions by
Promoting energy audits in the NEEAP is almost 13% against a 2011 scope 1 and 2
one of the main ways the government GHG emissions baseline.31 Measures
has been driving manufacturers to take included converting to LED air-lighting,
action. Between 2016 and 2018, 108 retrofitting HVAC systems and installing
industrial companies received the heat recovery systems.
Energy Audit Conditional Grant to carry
out energy audits. The audits revealed Energy audits have yet to be
an average of 12% potential energy mainstreamed despite available
savings measures per participating government funding and guidance
organisation.28, 29 published by the likes of SEDA. This is
likely to change in the near future as it is
Beyond the government programme, envisioned that the upcoming EECA will
energy audits were conducted in 2021 make energy audits mandatory for large
for nine food and beverage industrial players.32
manufacturing companies in Malaysia
as part of the UK-ASEAN Low Carbon Minimum Energy Performance
Energy Programme. As of February 2023, Standards. Minimum Energy
six of the nine companies had Performance Standards (MEPS) have
implemented energy efficiency progressed in recent years as proposed
investments worth up to USD535,000 in both the NEEAP and the Electricity
based on the audits. The programme Regulations 1994, as amended. These
highlighted the potential for thermal have established mandatory energy
energy efficiency in manufacturing. The labelling and minimum energy use
findings have informed a thermal energy standards for certain appliances and
study in support of the upcoming Energy equipment being manufactured,
Efficiency and Conservation Act (EECA) imported or sold in the Malaysian
and guidelines on best available market. One example of a company that
technologies for boilers. While the has done this is SCR Compressor, an
guidelines draw on best practices from industrial compressor manufacturer,
the food and beverage industry, they who produce a MyHIJAU Mark certified
are applicable to many other industrial highly energy efficient screw air
sectors.30 compressor. It can achieve energy
savings of between 35% and 40% when
in use.33

Clean Growth Handbook Malaysia 161

 Except for motors for industrial use, Electricity tariff changes accelerating
most of the products under the scope of energy efficiency. With the recent rise
MEPS are for domestic and commercial of electricity tariffs for industrial
use such as fans and washing consumers, there is a risk that SMEs that
machines.34 The upcoming EECA will make up the majority of businesses in
likely increase the scope of MEPS to the sector will be adversely affected.
cover a greater range of electrical The business case that covers the cost
equipment for industrial use.32 of energy audits or GHG emissions
baseline, initial investment costs and
operational cost savings will need to be
signposted for greater uptake of energy
efficiency measures across the sector.
Grants like the Energy Audit Conditional
Grant 2.0 that support the business case
will need to be signposted.35
Table 8.7 :
Energy efficiency initiatives under
the NEEAP1

Key initiative Scope Initiative description

Promotion of 5-star rated 5-star refrigerator campaign Promotion of 5-star rating and label for refrigerators to
appliance transform the market into more efficient models

5-star air-conditioners campaign Promotion of 5-star rating and label for air-conditioners
to transform the market into more efficient models

Minimum Energy EE lighting campaign Promotion of energy efficient lighting through

Performance Standards awareness programmes, enforcement of MEPS and
(MEPS) labelling

High efficiency motors Promotion and awareness programme that will lead
to mandatory MEPS and labelling for motors by 2020

Energy audits and energy Large and medium commercial Matching grants where free energy audit will be
management in buildings buildings provided to large and medium sized commercial
and industries buildings, industries, large Government facilities
Large and medium industries provided that the business owner is willing
to invest an amount of energy saving measures
Large Government facilities equal to the cost of the energy audit

Medium sized commercial

buildings

Cogen Cogen in industries and To promote cogen in industries and commercial

commercial buildings by implementing key strategic measures to
reduce barriers

162 Clean Growth Handbook Malaysia

UK Spotlight:
SSE Energy Solutions

Organisation profile: SSE Energy • Energy audits and compliance:

Solutions is an energy company under Conduct energy audits for clients,
SSE with a dedicated smart buildings offers services around achieving
arm covering energy management. They standards like minimum energy
offer a range of energy management efficiency standards and accessing
solutions that apply to buildings financing such as through energy
including manufacturing facilities. The performance contracts.36
company uses their energy
management expertise to help clients Key projects include:
understand their baseline energy • Installing a BEMS control and
consumption patterns to inform actions monitoring system for a vaccine
to manage usage. manufacturing facility in the
Netherlands for a pharmaceutical
Description of services: company. The BEMS was needed to
• Building energy management control and optimise a new air
systems (BEMS): Offer BEMS products handling unit to reap energy
and solutions, support building efficiency gains.37
regulatory compliance, support IT
legacy system integration and project • Deploying a remote optimal solution
delivery.36 for a multinational manufacturing
client’s production plant in the UK to
• Remote optimal: Offer an be able to remotely adjust
IoT-enabled software- as-a-service parameters within the factory’s
platform providing clients with air-conditioning system.38
analytics on their energy usage
remotely.36 • Using a remote optimal global
change tool to automate the
• Business energy intelligence: Offer a management of time clocks and
visualisation tool to gain a rapid view setpoints across Newcastle
on energy performance and trends.36 University’s campus in the UK,
achieving energy efficiency and
productivity gains.39

Clean Growth Handbook Malaysia 163

 Other UK players in:
Industrial energy
efficiency
• BSSEC is a commercial energy • Sirus UK provides building
efficiency consulting firm that offers a management systems, HVAC and
range of services including energy energy management services across
audits for all industry sectors a range of industries including
pharmaceutical and data centres
• Inteb conducts energy audits and
surveys and advises on energy • Boss Controls is a building energy
efficient technologies and financial management systems company that
support that businesses, including specialises in the control of heating,
manufacturing businesses, can utilise ventilation and air conditioning
including for the manufacturing
• Cotopaxi Energy is an engineering sector
consultancy that provides energy
engineering and management • Cube Controls is a building
solutions to industrial and commercial management system specialist that
clients promote smarter, more energy
efficient systems from design,
• Enverse is a technology provider of installation through to maintenance
industrial data analytics and stages
communication technologies
including plant asset management to • Emissis provides solutions that reduce
reduce energy consumption energy consumption of equipment
such as air-conditioners, refrigerators
• Easson Energy offers end-to-end and boilers for different sectors
energy saving solutions for industrial including manufacturing
applications, specialising in the
manufacture of advanced equipment • Quimera Energy Efficiency offers
that harnesses the power of big data, complete retrofit of equipment
AI and IoT through energy-as-a- service,
performance-based energy
• Future Motors offers a monitoring and reduction schemes
software-driven electric motor system
with remote monitoring capability • Vital Energi supports on energy
and up to 60% energy savings consumption management and
guiding clients, including
• Carbon Trust provides specialist manufacturing companies, on
support to help business and the investment and finance options. The
public sector make efficiency savings firm itself is an energy service
and seize opportunities by cutting company
carbon emissions, saving energy and
commercialising low carbon
technologies

164 Clean Growth Handbook Malaysia

 Renewable energy and
8.5.2 transition fuels
What can the UK offer? Selecting the right renewable energy Bioenergy generation from biomass
option. Due to the diversity of waste is largely limited to the palm oil
• Feasibility studies and transition manufacturers present in Malaysia, industry in Malaysia. The country
planning there is no one-size-fits-all renewable currently generates approximately 168
energy solution. Rooftop mounted solar million tonnes of biomass waste each
• System design PV might be more appropriate year from timber, palm oil, rice and
manufacturers with uninterrupted roof coconut industries, among other
• Installation and commissioning space. Ground mounted solar PV might sources.42 Palm oil waste is estimated to
be more suitable for manufacturers with represent 95 million tonnes of this
• Maintenance and repair spare land. Bioenergy might be a good waste43 (or 57%), suggesting the full
option for manufacturers in the potential of bioenergy is yet to be fully
• For solar PV in particular, refer to agribusiness, food and beverage realised.44
Section 5.5.1 industries. While less explored, wind
power may be an option in certain Uptake of renewables in oil and gas.
• For bioenergy in particular, refer locations. Businesses may choose to The installation of renewables on oil and
to Section 5.5.2 enter a Corporate Green Power gas platforms is gaining traction as oil
Programme (CGPP) with renewable and gas companies identify
energy developers to adopt such opportunities to decarbonise existing
solutions. operations. Shell’s wellhead platform at
the Gorek field off Sarawak is fully
Selecting the right renewable energy solar-powered.45 The company also has
option for a manufacturing facility a hybrid solar and wind power system
requires a feasibility study. Key to the installed on its fixed offshore wellhead
feasibility study will be operational platform in the Timi field in Sarawak.46
resilience especially considering the This is the first wind power installation in
intermittency of certain renewable Malaysia. Offshore wind and floating
energy options. This is a barrier that can solar are also being explored by oil and
be addressed with energy storage gas companies at the utility-scale such
system, however, this can be expensive. as by Petronas and Masdar, a renewable
There is still the option to draw power energy company from the United Arab
from the national grid but surges in Emirates.47 This could potentially be
power demand would need to be scaled across Malaysia’s 900 or so
discussed with Grid System Operator. offshore oil and gas platforms.48

Capitalising on bioenergy. As described Transition fuels. Refuse derived fuel

in Section 5.5.2, the use of biomass (RDF) is a transition fuel made from
waste to generate bioenergy presents a combustible municipal solid, commercial
significant opportunity in Malaysia. IOI and industrial waste. It contains both
Corporation, one of the largest palm oil fossil and biogenic carbon. The use of
players globally, has demonstrated the RDF in cement kilns as both a fuel and
benefits of adopting onsite bioenergy raw material input has gained traction in
generation. It is almost entirely able to Malaysia. There are currently nine
meet the electricity and steam cement plants using RDF and other
requirements of its palm oil refinery in waste derived fuels like waste oil in
Sandakan, Sabah, from its 15MW Malaysia. This includes companies like
biomass co-generation plant. IOI Pahang Cement, Tasek Corporation and
Plantation, a core business arm of IOI CMS Cement Industries, with operations
Corporation, currently has 10 biogas in the states Pahang, Perak, Perlis,
facilities and will be installing four Negeri Sembilan and Sarawak.49
additional plants in the coming years.
The locations of these have not been yet Cement, steel and other heavy carbon
disclosed. In the future, the company emitters might also be able to tap into
aims to explore biofuel production and blue hydrogen from a producer
other biomass conversion technologies, co-situated in an industrial CCUS
signaling potential areas of cluster.
opportunity.40, 41

Clean Growth Handbook Malaysia 165

 Figure 8.8 :
Implementation potential of energy
related strategies outlined in MNRECC
and MGTC’s Green Practices Guideline
for Manufacturing Sector25

TARGET
Efficient
utilisation of energy
in manufacturing
processes

A C D F
Processes
E G
Energy input Total energy
(fuel, electricity) loss
Process 1 Process 2

Raw materials Products

Increase Increase

Energy efficiency Renewable energy

Conduct energy audits to identify feasible

Application of solar energy to increase RE
A energy saving options applicable in the E in fuel mix and reduce GHG emissions
operations or processes.

B Reuse and recycle materials F Retrofit old technologies with energy

efficient ones

C Reduce heat loss

G Integration with renewable energy options
such as solar PV, and biogas generation
D Utilise heat to other process

50

166 Clean Growth Handbook Malaysia

UK Spotlight:
Jaguar Land Rover’s
Engine Manufacturing
Centre

Organisation profile: Jaguar Land Rover Description of services: Drawing on

is the UK’s largest automotive decades of experience in the design of
manufacturing company. The company industrial buildings, Arup was engaged
employs almost 38,000 people globally to support Jaguar Land Rover develop
and supports around 275,000 more low carbon solutions for the centre’s
through their retailers, suppliers and 70,000m2 facility. The outcome was a
local businesses. The company’s flexible and highly automated
manufacturing base is the UK, with manufacturing facility that also
additional facilities in China, Brazil and achieved a 65% reduction in carbon
India. Aside from manufacturing, the emissions relative to a business-as-usual
company offers repair and maintenance emissions baseline.
services and invests significantly in
automotive R&D. In fact, it is the largest Key features included:
investor in R&D in the UK manufacturing • the largest roof-mounted solar PV
sector. In 2022, Jaguar Land Rover sold array in the UK at the time of
487,065 vehicles in 160 countries, with installation in 2014
more than 80% of vehicles produced in
the UK being sold abroad.50 The • natural ventilation of the office
company has set a couple of SBTi spaces through saw-tooth roof profile
approved targets to reduce GHG
emissions across its own operations by • factory floors designed to receive
significant amounts of daylight
46% and per vehicle across its value
illumination to reduce the reliance on
chain by 54% by 2030.51 The company
artificial lighting
aims to be net zero across its supply
chain, products and operations by 2039.
• a simple grid of modular units to
To support achieving these goals, create an adaptable series of spaces
Jaguar Land Rover partnered with Arup that, in tandem with a large span
in 2012 to develop its new engine structure, resulted in a building 10%
manufacturing centre in the UK. smaller than originally envisaged

• flexibility to allow for further

integration of renewables to achieve
net zero carbon in the future
Clean Growth Handbook Malaysia 167
 Other UK players in:
Renewable energy and
transition fuels
• OnGen offers a software-based • GreenEnco is a renewable energy
service though its OnGen Expert™ advisory firm that provides risk
tool, which assesses the technical and management in solar PV and energy
commercial feasibility of generating storage projects from concept
onsite renewable energy planning through to completion
including engineering services and
• Baringa provides transition planning, asset optimisation
net zero strategy, emissions
management and reporting services • YLEM provides onsite energy
for clients in petrochemicals, natural generation solutions, specialising in
resources and pharmaceuticals designing, building, operating and
maintaining reliable systems for
• Longevity Power provides end-to-end various manufacturing industries
services to clients on solar PV
including conducting feasibility • Ryse Energy specialises in designing
studies, project management of and deploying wind, solar and hybrid
installation and advice through the energy solutions on sites including
corporate power purchase agreement industrial sites
process
• Saria products a range of liquid and
• Renewables First has full project solid biofuels for the industrial market
capability for wind and hydropower and generates bioenergy from food
for different sites, including industrial and agriculture waste
facilities or parks, from feasibility to
system design and installation • The UK’s Environment Agency has
previously published a review on the
• Enverse is a technology provider of use of substitute fuels in the UK
industrial data analytics and cement and lime industries
communication technologies
including algorithms to forecast and • Breedon’s cement plant in Derbyshire
control grid- connected onsite energy uses RDF in the cement production
assets process

• Solarsense installs solar panels and • For solar PV in particular, refer to

other renewable energy technologies Section 5.5.1
for industrial, commercial and
residential clients • For bioenergy in particular, refer to
Section 5.5.2

168 Clean Growth Handbook Malaysia

 Resource efficiency and
8.5.3 circular economy
What can the UK offer? Industrial symbiosis at eco-industrial A remanufacturing legacy to build on.
parks. The vision of well-planned Remanufacturing activities are
• Finance including sustainable industrial parks with EIP features is being particularly buoyant in the automotive
finance promoted by MITI with the aim of and electrical appliances and
attracting investment.52 This includes electronics industries with several
• Industrial symbiosis platforms adopting resource efficiency measures. original equipment manufacturers and
SIRIM, the industrial research and local SMEs remanufacturing in Malaysia
• Remanufactured product technology body under MITI, is for years. A 2015 study by the United
standards supporting these efforts by carrying out States Agency for International
a Resource Efficiency and Industrial Development found that
• Circular design and business Symbiosis Opportunity Assessment remanufacturing of automotive
models (REISO) programme across Malaysia. As components, aerospace parts, electrical
the name suggests, the programme appliances and electronics, and printer
• Resource monitoring in the helps identify resource efficiency and cartridges contributed up to RM4 billion
supply chain industrial symbiosis opportunities within to the Malaysian economy. It was also
and between businesses.53 estimated to contribute to the diversion
of around 37,000 tonnes of waste and
FGV Holdings, an agribusiness and food avoidance of around 62,000 tonnes of
company, has participated in SIRIM’s carbon emissions each year.57
programme although the outcome of
the assessment is not publicly Opportunities in the automotive industry
available.54 The company has, however, are likely to grow with the end-of-life
announced its support for lean vehicle blueprint currently being
manufacturing practices as part of its developed by the Malaysia Automotive
Sustainability Policy 2021.55 The initial Recyclers Association and Universiti
four-year programme commenced in Teknologi Malaysia.58 This may bring
2019 although SIRIM has indicated a about further opportunities in
second phase of the programme beyond automotive component
2023.56 remanufacturing as well as EV battery
reuse and Malaysia will continue to grow
To maximise industrial symbiosis in EIPs, the remanufacturing market with the
tenants are required to share their support of MIDA, which identified it as a
resource inputs and outputs to cluster key opportunity in the Malaysia
the right industries together. Tenants are Investment Performance Report 2019.59
not typically used to doing this. Data Malaysia’s expertise in remanufacturing
platforms and data governance could be a trade differentiator as more
strategies would need to be put in place countries look to import low carbon
to encourage tenants on the products. This could be enhanced by
confidentiality of the process. SIRIM is remanufactured product standards.
currently looking for companies with the
relevant technologies and services to
support this.

Clean Growth Handbook Malaysia 169

 Plastics recycling. Fast-moving Links to supply chain decarbonisation.
consumer goods companies have been The link between circular economy and
leading the front on plastics circularity. decarbonisation is often overlooked.
A lot of the focus to date has been on Circular approaches like reuse,
plastics recycling, which is estimated to refurbishment, remanufacturing and
be worth RM4.5 billion in revenue in recycling could support the Supply
Malaysia in 2019.60 Nestlé Malaysia is Chain Greening Export Supply Chain
working with recycling companies and Initiative that the Malaysia External
municipalities in the Klang Valley to Trade Development Corporation has
extend their collection and recycling rolled out for industries like electrical
efforts.61 These efforts are in anticipation and electronics, petrochemicals and
of the national voluntary extender furniture.63 The recent “Green Practices
producer responsibility (EPR) scheme for Guidelines for Manufacturing Sector”
plastic packaging that will be applicable published by MGTC features a number
from 2023, with a mandatory one under of circular opportunities for the sector to
consideration for 2026.62 The World Bank adopt such as design for disassembly to
has recently issued a tender on enable recycling or reuse. The range of
exploring plastic circularity opportunities proposed and their
opportunities in the automotive sector, adoption across the product life cycle is
demonstrating the need to expand shown in Figure 8.9 and Figure 8.10,
plastics circularity opportunities beyond respectively.
just recycling and fast-moving consumer
goods.

170 Clean Growth Handbook Malaysia

Figure 8.9 :
Materials objectives outlined in MNRECC
and MGTC’s Green Practices Guideline
for Manufacturing Sector25

Manufacturers use various types of materials in their processes. Some manufacturers require the use of virgin materials exclusively,
while others may utilise recycled materials. Long-term survival of manufacturers depends on the efficient consumption of materials.
This is linked with the availability of natural resources and achieving high material efficiency is highly recommended.
Main aspects of
material efficiency
Generate less waste per Reduce the amount Achieve better waste
product regardless of of material used for segregation and
end-of-life scenarios manufacturing through management to move
process improvement up the waste hierarchy
or in-house recycling or steps: Disposal,
reusing recycling, reuse,
minimisation and
prevention
This leads
to:

Prevention and Transformation of the Reduction of industrial Increased recycling Reduced energy
Cost and energy waste management
reduction in extraction savings in fabrication waste volumes and reusing in waste demands, carbon
and consumption of process, leading to more management emissions & overall
virgin raw materials efficient transportation environmental impact
and disposal of waste

GOALS To focus on reducing the amount of natural resources required to produce finished goods through a cleaner
AND AIMS and more material- and energy-efficient manufacturing processes, leading to overall reduction of waste and emissions.

12.2: By 2030, achieve 12.4: By 2020, achieve 12.5: By 2030,

the sustainable the environmentally substantially reduce
management and sound management waste generation
efficient use of natural of chemical and all through prevention,
resources wastes throughout reduction, recycling
their life cycle. and reuse

Figure 8.10
34 :
Implementation potential of materials
strategies outlined in MNRECC and
MGTC’s Green Practices Guideline for
Manufacturing Sector 25

TARGET
The figure below lists the potential areas
for improvements in material efficiency Efficient
that manufacturers may adopt in their consumption of
practices: materials

Raw
materials A D
C
Recycling/
Recovery
Production
E
Packaging
materials
Assembly
B
Repair/
C Reuse/
Upgrade
Use
B C
Recycling/ Refurbishment/
Recovery Remanufacture
End Of Life

Waste

Reduce Increase Increase Reduce Reduce

A B C D E
Toxic/ regulated
Non-renewable materials Reused materials Recycled materials Auxiliary materials
materials

Reduce the consumption of Reusing materials such as waste Implement policies, strategies, Wherever possible, substitute Wherever possible eliminate, minimise,
virgin materials for example and/ or consumables within the and programmes that support 3R hazardous and/or regulated or reduce use of auxiliary materials
by extending the lifetime premise e.g., customised spill kits implementation within and beyond chemicals with materials that such as packaging. If not possible,
of product through product used on-site the manufacturing premises has lower environmental consider using recycled materials or
design impacts throughout product recyclable materials
or service life cycle

Clean Growth Handbook Malaysia 171

 Malaysia Project Spotlight:
SIRIM’s
Technology-Enabled
Support and Standards
for Eco-Industrial Parks

Organisation profile: SIRIM is the Timeframe: REISO began in 2019 with

government agency driving Malaysia’s plans to pursue it beyond 2023. MyEIP
industrial research and technology will run from June 2020 to December
development. More specifically, its 2023. The draft EIP classification
functions include research, standards have already been published
development, commercialisation, in June 2022 for consultation.
standards and lastly, innovation, where
it operates six industrial centres of Description: An overview of REISO is
innovation. In line with the 12MP, SIRIM is provided earlier in this section. MyEIP
promoting technological development aims to facilitate the transformation of
to enable EIP adoption. It is creating brownfield industrial estates to EIPs
standards for park managers to assess based on international good practice
parks against well-recognised and to demonstrate the viability and
performance criteria for EIPs. It is also benefits of EIP approaches.64 As part of
supporting EIP awareness campaigns this project, SIRIM is developing a
and providing recommendations for geographic information system-based
establishing a national EIP policy. To E-Industrial Symbiosis platform to
help the private sector capture potential facilitate data exchange between
cost, revenue, investment, reputation tenants.65 A draft EIP classification
and competitiveness benefits, SIRIM has standard that is applicable to both
initiated several EIP related projects greenfield and brownfield sites has been
including the Resource Efficiency and developed. The objectives are that this
Industrial Symbiosis Opportunity standard will serve as a basis for
Assessment (REISO) programme, classification of EIPs in Malaysia and
Technology–Enabled Support for the serve as a reference document for park
Development of Eco-Industrial Parks managers to benchmark against a set of
Intervention and Digitalisation (MyEIP), criteria aligned with established
and development of EIP classification international framework of EIPs, notably
standards.56 the framework developed by the United
Nations Industrial Development
Location: Greenfield and brownfield Organisation and others.
industrial parks across Malaysia.

172 Clean Growth Handbook Malaysia

Malaysia Project Spotlight:
Circular Production
in Penang

Organisation profile: The Penang Green The three main pillars include:
Council (PGC) was established in 2011 by
the Penang State Government to • Stakeholder platform: PGC organises
champion and coordinate sustainable meetings with different stakeholder
development in Penang. The council’s groups to allow experiences to be
objectives are to protect the shared and to build consensus around
environment and quality of life in how the government, private sector
Penang.66 and non-governmental organisations
can work together to build the
Location: Penang circular economy in Penang

Timeframe: PGC aims to facilitate the • Partnership programme: PGC

green transition of the manufacturing facilitates pilot projects where SMEs
sector in Penang to turn the state into a and multinational corporations
green manufacturing hub by 2030.67 conduct pilot projects to explore and
showcase the viability of circular
Description: PGC launched the Circular economy projects before they are
Economy and Industry Programme in scaled up
2022 to create a circular economy
within the manufacturing sector in • Capacity building: PGC conducts
Penang. The aim for the first 4-5 years is training sessions on ESG for
to build a circular economy network and companies, especially SMEs, to move
identify the support needed to scale towards cleaner production and to
circular economy. There are three main ensure Penang has its own pool of
pillars to the programme. The experts to draw from in the coming
programme is starting with the electrical years
appliances and electronic industry.
Companies involved include HP, Lam
Research, Micron, Vitrox, Flex,
Broadcom and Western Digital. Once
the circular economy is established
within the electrical appliances and
electronic industry, PGC aims to extend
circular economy to other sectors.
Clean Growth Handbook Malaysia 173
 UK Spotlight:
Anthesis Group

Organisation profile: Anthesis Group is • Circular economy strategy: Circular

a British-based sustainability consulting design, materials and waste tracking,
firm, with offices in 40 countries. In Asia, unused resources elimination,
Anthesis Group has offices in the extended producer responsibility and
Philippines and China. Over the years, circular business models
the company has acquired other firms to
• Brand and communications:
bolster its service offerings in some of
Stakeholder engagement, customer
these areas. In 2022, Anthesis Group
insights
acquired Climate Neutral Group, a
consulting firm that specialises in • Education and culture: Education for
decarbonisation strategies.68 The sustainability, cultural insights
company develops sustainability
• Cities and environments:
strategies underpinned by technical and
Environmental due diligence, energy
financial expertise for a range of clients
insight
including manufacturing clients such as
Unilever, North Face, Danone and 3M.69 • Transactions and finance: ESG
Some of the sustainability areas the screening and reviews, mergers and
company develops strategies for include acquisition due diligence
circular economy, energy resilience,
climate risk, net zero, among others. Key projects include:
70, 71, 72
• Plastic footprinting, global retailer:
Anthesis calculated a global retailer's
Description of services: plastic footprint to drive progress
• Strategy and governance: Materiality towards their 2025 Ellen MacArthur
assessments, future trends review Foundation commitments73

• Supply chain and operations: Carbon

• Tackling single use plastic, Microsoft:
footprints, life cycle assessments
The objective of the project was to
• Sustainable products and services: bring together companies from across
Responsible sourcing and materials the industry to explore alternative
solutions to single-use pallet stretch
wrap to support Microsoft with its zero
waste commitments74
174 Clean Growth Handbook Malaysia
Other UK players in:
Resource efficiency and
circular economy
• Circularity Capital is a specialist • Ellen MacArthur Foundation is a
private equity firm that provides non-profit and global thought leader
clients access to circular economy on the transition to a circular
investment opportunities, the economy. EMF has developed free
company also advises clients on how company-level tools to support and
circular business models derive value monitor the circular economy
transition by businesses
• Hive Energy is a global renewable
energy developer and circular • IDEO is a design company that
economy investor in early-stage produced the Circular Design Guide
companies with novel industrial for manufactured products with the
waste-to-product technologies Ellen MacArthur Foundation

• International Synergies devises and • University of Exeter leads the Exeter

manages industrial symbiosis Centre for Circular Economy,
programmes across five continents co-created a Circular Business Model
Design Guide with the Ellen
• Agave Networks offers an excess MacArthur Foundation, and offers a
materials sharing and tracking 6-week Circular Economy Masterclass
platform for manufacturing and
construction companies • Singular Intelligence offers an
end-to-end AI platform that
• NNFCC is a consultancy specialising generates supply chain demand
in the bioeconomy including the use insights for manufacturers to plan
of biobased materials or biomass production and prevent waste
waste as industrial feedstocks generation

• Altec Energy converts non-recyclable • Everledger provides technology

plastic waste into hydrogen feedstock solutions to increase transparency in
for the chemicals and plastics global supply chains including for
industries batteries, critical minerals and textiles
industries, enabling manufacturers to
• British Standards Institution offers track and verify circular economy
Kitemark certification for opportunities
reconditioned and remanufacturing
goods

Clean Growth Handbook Malaysia 175

 Carbon capture, usage and
8.5.4 storage
What can the UK offer? The rise of carbon capture, usage and The top three sites include the Malay
storage. Malaysia and Indonesia are Basin offshore Terengganu, Central
• Feasibility studies among the first countries in Southeast Luconia Province offshore Sarawak and
Asia to explore carbon capture, usage West Baram Delta also offshore
• Design and engineering of and storage (CCUS). Malaysia currently Sarawak.81 While the Malay Basin has
facilities has two CCUS projects in the pipeline. been evaluated as the best site for
Both projects are pre-combustion CCUS carbon storage, the coast of East
• CCUS and hydrogen ecosystem projects rather than post-combustion Malaysia (especially Sarawak) has been
clustering CCUS, hence fall under the identified as a location with the greatest
manufacturing sector rather than power estimated capacity of 30 trillion cubic
• CCUS business models sector. metres in the seabed of its continental
shelf.81, 82
• Carbon storage regulations The first project is by Petronas Carigali,
a wholly-owned subsidiary of Petronas, International interest. The opportunities
that will remove carbon dioxide from around CCUS in Malaysia has received
natural gas extracted from the Kasawari significant attention recently. In June
field and compress it before piping it 2022, Petronas and Japan’s Mitsui & Co.,
135km for injection into a depleted a trading and investment company,
reservoir. Natural gas extraction will signed an MOU to explore the possibility
commence in 2023 while the CCUS is of transporting carbon emitted by
planned to begin operations in 2025. It is factories as well as power plants in East
expected to reduce carbon emissions by Asian countries like Japan, South Korea
3.3 million tonnes.75, 76, 77 and Taiwan for storage off the coast of
Peninsular Malaysia.83
The second will be for PTT Exploration
and Production’s Lang Lebah project. In August 2022, Petronas signed a MOU
Natural gas from the field will be piped with six South Korean companies
to an onshore processing plant with the operating in the petrochemicals and
extracted carbon piped back offshore chemicals subsector. The agreement will
for injection into the depleted Golok evaluate the development of the CCUS
field. PTT Exploration and Production’s value chain and carbon storage sites in
HK Offshore (Malaysia branch) is the Malaysia.84
operator with 42.5% interest while
KUFPEC Malaysia (SK-410B) Limited and In February 2023, Petros signed an
Petronas Carigali hold 42.5% and 15% agreement with Japan’s Inpex, an oil
percent interest, respectively.78, 76 and gas company, with the aim of
exploring CCUS solutions for
In November 2022, Storegga and manufacturing (especially the
Petronas signed an MOU to assess and petrochemical subsector) as well as
determine the commercial, regulatory power plants and gas fields.85
and economic factors required for the
development of CCUS hub and cluster Business models. While the application
projects in Malaysia.79 In January 2023, of CCUS is still in its infancy, the growing
Petronas signed two agreements with number of MOU announcements signal
ExxonMobil to jointly pursue CCUS growth in this space. As CCUS matures,
projects in Malaysia.80 hub and cluster networks will need
developing with appropriate business
Malaysia’s storage capacity. Malaysia models related to carbon transport,
lends itself well to the CCUS agenda utilisation and storage. The relationship
with a high emitting industry community between CCUS and Malaysia’s interest
and identified carbon storage capacity. in developing its hydrogen economy will
One recent study has identified several also need considering with blue
sedimentary basins for carbon storage hydrogen production requiring carbon
in Malaysia. capture.

176 Clean Growth Handbook Malaysia

Figure 8.11 :
CCUS hub and cluster network86

STEEL PLANT HYDROGEN CEMENT BIOMASS

PRODUCTION PLANT

OFFSHORE
CO2 STORAGE

CO2

CO2 COLLECTION HUB

CO2 TRANSPORT

ONSHORE
CO2 STORAGE

CO2
FERTILISER NATURAL GAS REFINING POWER PLANT
PLANT PROCESSING

Clean Growth Handbook Malaysia 177

 Figure 8.12:
Opportunity factors for CCUS in
a selection of Southeast Asian countries87

Opportunity factors for CCUS in a selection of Southeast Asian countries

Brunei Darussalam Indonesia Malaysia Philippines Singapore Thailand Vietnam

Domestic CO2 storage potential

Potential to use CO₂ for EOR

Legal and regulatory frameworks for CCUS in place 0* 0 0* 0* 0* 0*

Industrial clusters with CO₂ capture prospects

Recognition of CCUS in long-term strategies/goals 0 0

Targeted policies to support CCUS investment

Active pilot or demonstration facilities

Plans for commercial CCUS facilities

black dot = yes, black circle = possibly/partially; * = oil and gas regulations potentially applicable for CO2 storage.

Figure 8.13:
Carbon storage potential in sedimentary
basins of Malaysia81

Legend:
Basin Potential
High Potential Low Potential High Potential No Potential

178 Clean Growth Handbook Malaysia

UK Spotlight:
Hanson

Organisation profile: Hanson UK is a Key projects include:

building materials company that • Developed and trialed new low
manufactures aggregates, concrete, carbon asphalt solutions on a road in
asphalt and contracting, and cement. Hertfordshire for National Highways91
Hanson UK is committed to fulfilling its
responsibility to support the UK • Trialed asphalt containing plastic
Government’s net zero ambitions and waste additives for highways
has developed its own net zero surfacing in Cumbria for Cumbria
carbon by 2050 roadmap.88 The County Council92
roadmap identifies several key • Supplied low carbon Cemfree
strategies to achieve this including: concrete to BAM Nuttall for Network
• increasing the use of alternative raw Rail’s Chatham Railway Station in
materials and fuels Kent93

• fuel switching to hydrogen • Developed and supplied energy

reducing asphalt such as warm mix
• CCUS asphalt for use in road maintenance
• reuse of carbon products works in Hertfordshire for National
Highways94
• plant and process efficiency
• Supplied ready mixed low carbon
The company is also active in Malaysia
concrete to Bam Nuttall for Network
through Hanson Malaysia, which
Rail’s coastal protection
operates 15 quarries, 16 asphalt plants
infrastructure in Devon95
and 45 ready mix concrete plants.89
In Malaysia, it is the largest producer of • Part of the HyNet North West
aggregates and asphalt and has a consortium that aims to construct the
strong market position in ready mix world’s first low carbon industrial
concrete.90 cluster. Hanson UK plans to invest in a
carbon capture plant at its cement
Description of services: manufacturing facility, which will
• Heavy building materials connect to the planned HyNet CO 2
manufacturing transport and storage system
shared with other manufacturing
• Logistics companies96
Clean Growth Handbook Malaysia 179
 Other UK players in:
Industrial CCUS
• Wood provide technical advisory and • The UK has strategically promoted an
design services at feasibility, concept, industrial CCUS cluster model instead
pre competition, competition and of supporting stand alone projects
detailed design in relation to CCUS due to the greater economies of
scale and risk sharing benefits that
• Costain offers economic assessments, the model provides
feasibility and concept design,
detailed design and project • HyNet North West is one of two
management services for CCUS and emerging clusters with companies
hydrogen including Cadent Gas, INEOS, Ibstock
Brick, and Hanson among others. The
• Arup provides economic assessments, other cluster is known as the East
feasibility planning, design and Coast Cluster with companies
development services in relation to including Equinor, BP, Eni, Shell,
CCUS and hydrogen TotalEnergies, and National Grid
among others
• Storegga is a project developer of
CCUS and green and blue hydrogen • National Grid works with the UK
production in the UK and Government and regulators on both
internationally establishing the regulatory framework
and CCUS business models
• Progressive Energy is a project
developer of CCUS and hydrogen • The North Sea Transition Authority
projects. The company has regulates offshore carbon dioxide
experience in clustering and storage, approves and issues storage
managing consortium partners permits as the licensing authority,
and maintains the carbon storage
• Carbon Clean designs next public register
generation CCUS solutions for hard to
abate industrial sectors • Pinsent Masons advises on legal and
regulatory aspects of CCUS and
• CR Plus specialises in process hydrogen projects for some
engineering, energy management of the abovementioned companies in
and strategy development for the the UK’s emerging industrial CCUS
industrial sector. The company is clusters
developing a clean growth plan for
South Wales Industrial Cluster, which
will include CCUS

180 Clean Growth Handbook Malaysia

 Summary of manufacturing
8.6 sector collaboration
opportunities

UK-Malaysia collaboration Demand drivers Expertise offered Examples of

opportunities in Malaysia by the UK UK players

Evidence based • NEEAP and GTMP have • Energy auditing and surveys • SSE Energy Solutions
identification of promoted voluntary uptake of
industrial energy energy audits and minimum • Energy efficiency business • BSSEC
efficiency measures energy performance standards models
(MEPS) • Inteb

• Finalising the Energy Efficiency • Quimera Energy

And Conservation Act, Efficiency
which is expected to mandate
energy audits for large • Vital Energi
industrial players and establish
MEPS for a variety of industrial
equipment

Use of 4IR technologies • Manufacturers have limited • Energy monitoring • Cotopaxi

for energy efficiency, visibility on energy leakages and management
renewable energy and • Enverse
circular economy • Intermittency of renewable • Smart building energy
adoption energy sources remains a management • Easson Energy
critical barrier
• Resource monitoring • Future Motors
• Electricity tariff for industrial in the supply chain
consumers was recently raised • Sirus UK
• Strong policy direction for 4IR • Boss Controls
but the environmental
link has not been clarified yet • Cube Controls
• Incentives for companies to
adopt 4IR technologies are • Emissis
available
• GreenEnco

• Singular Intelligence

• Everledger

End to end renewable • Corporate Green Power • Feasibility studies and transition • OnGen
energy implementation Programme launched recently planning
for industrial sites • Longevity Power
• Installation of renewables on oil • System design
and gas platforms is gaining • Renewables First
traction • Installation and commissioning
• Baringa
• Maintenance and repair
• Solarsense

• YLEM

• Ryse Energy

Clean Growth Handbook Malaysia 181

 UK-Malaysia collaboration Demand drivers Expertise offered Examples of
opportunities in Malaysia by the UK UK players

Designing industrial • EIP development supported by • Industrial symbiosis platforms • International Synergies
parks that adopt 12MP and programmes available
industrial symbiosis through MITI and its related • Finance including sustainable • NNFCC
bodies finance
• Altec Energy
• Growing awareness of EIP
benefits including investment • Circularity Capital
attraction
• Hive Energy

• Agave Networks

Circular economy • Circular economy is promoted • Remanufactured product • British Standards

opportunities for in the recent “Green Practices standards Institution
automotive components, Guidelines for Manufacturing
electrical and electronic Sector” • Circular design and business • IDEO
products, and plastic models
• Voluntary EPR scheme for
packaging • University of Exeter
plastic packaging, which could
• Resource monitoring in the
be mandated
supply chain • Ellen MacArthur
• Tenders on exploring plastic Foundation
circularity in the automotive
sector have been issued • Anthesis Group

• Interest in reducing supply chain • Singular Intelligence

emissions, though circular
approaches are underexplored • Everledger

Design and • Market leaders are already • Feasibility studies and transition • Arup
implementation of delivering the first hydrogen planning
industrial CCUS clusters and CCUS projects • Costain
• System design
• Projects tend to be stand alone • Wood
and so benefits of economies of • Installation and commissioning
scale and risk sharing through • Storegga
clustering have yet to be • Maintenance and repair
realised • Progressive Energy
• Opportunities to enter the
market but it needs to make • National Grid
economic sense to embark on
• North Sea Transition
Authority

• Pinsent Masons

• Carbon Clean

182 Clean Growth Handbook Malaysia

 Market entry considerations
8.7 for UK companies
Demand drivers. Malaysia has a thriving Incentives. MIDA’s Incorporation Act
and growing manufacturing sector. In has incentives for foreign companies to
2021, the major export-oriented products invest in Malaysia. There are also a
from Malaysia were integrated circuits, range of incentives not from MIDA that
refined petroleum, palm oil, rubber foreign companies are eligible for,
apparel and petroleum gas. The depending on the sector. Some
Malaysian government actively promotes incentives can be enjoyed in parallel,
investments in the manufacturing sector while some incentives become out of
via the Malaysian Investment reach if a company is already enjoying
Development Authority (MIDA) and has other incentives. It should also be noted
various business-friendly policies. Over that for green technology producers,
the years, MIDA’s responsibilities have some incentives such as the Green
also grown to include investments in Technology Financing Scheme require at
manufacturing-related services. least 51% Malaysian shareholding for a
There are several key considerations for company to be eligible.
UK companies when looking to enter the
Land. Foreign companies are allowed to
Malaysian manufacturing market, which
own industrial land. However, in the past
are described below.
decade, it has become more challenging
Local partner. Since 2003, foreign to find available freehold land for
investors are allowed to hold 100% of the purchase, thus leasehold is becoming a
equity in new manufacturing projects. popular option. Long-term land rental in
However, there are foreign ownership Malaysia’s existing and growing
restrictions for companies in industrial parks is also another option.
manufacturing-related services.97 A local
Competition. Malaysia remains an
partner may be beneficial for UK
attractive investment destination for
companies to have a rapid
investors from other countries such as
understanding of the local market.
China and Japan. Therefore, it is
However, for companies in the services
important that UK companies consider
sector, having a local partner is a must to
their commercial position against
comply with foreign ownership
potential competition before entering
restrictions.
the Malaysian market.

Clean Growth Handbook Malaysia 183

 Other market entry considerations. • Establishing a manufacturing facility.
The following is an outline of key steps Key steps in the process are outlined
that can be taken by a UK company below.
intending to enter the manufacturing 1. Obtaining approval for a
market in Malaysia.97 manufacturing project from the
• First point of contact. In general, the Ministry of Investment, Trade and
first point of contact in the Industry, and applications are to be
manufacturing sector would be MIDA submitted to MIDA (only for
or a relevant industry association. manufacturing companies with RM2.5
These include agencies such as, but million and above of shareholders’
not limited to: funds)

- East Coast Economic Region 2. Registering a business entity via the

Development Council Companies Commission of Malaysia

- Northern Corridor Implementation 3. Considering equity structure within

Authority the company

- Sabah Economic Development and 4. Finding out available incentives from

Investment Authority MIDA

- Federation of Malaysian 5. Considering applicable taxes such as

Manufacturers company tax, personal income tax,
withholding tax, import duty and
- Malaysian Photovoltaic Industry excise duty
Association
6. Recruiting talent in Malaysia and
regulatory considerations for labour
standards
7. Obtaining financing in Malaysia from
the various types of financial
institutions such as commercial banks
and development financial
institutions
8. Other considerations include
compliance with environmental
standards, protecting intellectual
property, and availability of industrial
land.

184 Clean Growth Handbook Malaysia

Section 9

Clean growth enablers in

Malaysia and the UK
This section explores the enabling environments of Malaysia and the UK. An overall
assessment is provided for both the UK and Malaysia, while a more detailed
assessment is provided for Malaysia. For Malaysia, analysis of the current state of play
in the country is provided for each of the nine enablers, together with key strengths to
leverage and areas for development tagged by sector.

Clean Growth Handbook Malaysia 185

 Overview of enablers in
9.1 Malaysia
A review of the nine enablers set out in pages. The information provided is not
Section 2.5 indicates that there are intended to be exhaustive but a
many enablers in place to support the high-level summary of the current status
uptake of clean growth in Malaysia. of implementation and a signpost of the
However, a more coordinated approach key strengths and areas for further
could be taken within and across sectors development by sector. The latter form
to guide the market. Table 9.1 below sets the basis of potential collaboration
out the key findings from the enablers opportunities between Malaysia and the
review in Malaysia with further detail on UK.
each enabler provided on the following

Table 9.1 :
Key findings related to enablers in Malaysia

Directive enablers

Governance Policy and regulation Standards

The Ministry of Economy has shared There have been notable strides in the The Department of Standards
that it will publish an Energy Transition country’s national climate aspirations Malaysia functions as the national
Roadmap. The formation of the over the last two years, for example, in standards body. Its standards for the
Ministry of Natural Resources, the 12MP and the new National Energy large part focus on energy efficiency
Environment and Climate Change is Policy. Upcoming policies include a in appliances, buildings and vehicles.
expected to enable more holistic Climate Change Act and Energy There are yet to be standards that
environmental governance. A Efficiency and Conservation Act, capture embodied carbon
collaboration between the two which send important signals to the calculations to inform environmental
ministries on clean growth could market. product declarations.
be powerful.

Business case enablers

Data and infrastructure Market incentives Technology and innovation

On data, Malaysia is developing a Financial incentives such as tax The Malaysia Renewable Energy
GHG Information Management breaks and subsidies for the private Roadmap identified technology that
System. On infrastructure, electricity sector exist to promote the uptake of mitigates the effect of renewable
provider, TNB, continues to modernise renewable energy and low carbon energy fluctuations on grid stability as
the national grid into a digital and transport options. Incentives are also a key driver for the energy transition.
flexible smart grid that can receive present to encourage investments in, A National Energy Centre has been
renewable energy and support and adoption of, green technology in established to champion the energy
dynamic two-way electricity flows the private sector. A voluntary carbon transition. Meanwhile, Sarawak is
while maintaining voltage stability. market has also just been launched. leading in hydrogen and CCUS.

Implementation enablers

Funding and financing Capabilities Collaboration

Multiple forms of funding and The importance of growing The Malaysian Green Technology and
financing exist to support the capabilities in the green economy and Climate Change Corporation, and
development of green technology in decarbonisation is acknowledged by Envision Digital are developing a
power, transport, buildings, the public and private sectors. There system that allows businesses to
manufacturing and waste. SMEs and is now more integration of low carbon monitor their greenhouse gas
start-ups enjoy access to funding to technologies into tertiary education, emissions. The CEO Action Network
help them adopt and accelerate ESG allowing for a new generation that focuses on sustainability advocacy
plans. understands the importance of clean and capacity building. It also provides
growth. insights from the private sector to
government.

186 Clean Growth Handbook Malaysia

Section 9.2

Deep dives into enablers

in Malaysia
This section analyses each of the nine enablers and identifies the key strengths to
leverage on and development areas.

Clean Growth Handbook Malaysia 187

 Governance
9.2.1
National governance. Clean growth is The motivations for land use conversions
UK Success Story: Legally binding an economic and decarbonisation led by states are often guided by revenue
emissions reduction targets and agenda. The Ministry of Economy generation, as the taxes that are
establishing an independent climate (MOEc) in 2020 assumed four main collected at the federal level do not
change committee functions: socioeconomic development necessarily flow back to the states to
• The UK has set clear planning, resource allocation, cover their operational expenses.
decarbonisation stakeholder engagement, and Greater federal-state-city alignment is
regulation through the legally coordination and monitoring. MOEc has needed to better coordinate efforts to
binding Climate Change Act 2008, taken on the task of formulating champion clean growth related to land
as amended, that commits the UK medium- and long-term socioeconomic use, town planning, transportation and
government to achieving net zero development plans at the national, city governance.
carbon emissions by 2050. To regional and state levels that promote
support this, the Climate Change clean growth. In March 2023, MOEc Identified strengths.
Act requires the UK government to shared that within three months it would
Cross sector. Under the 12MP, local
set legally binding ‘carbon publish an Energy Transition Roadmap.1
governments will be encouraged to
budgets’ that set intermediary
establish a task force on sustainable
emissions reduction targets up to In December 2022, after the change of
development to mirror the structure
2050. The Act also established the government following the 15th general
at federal and state levels.3 In the
Climate Change Committee ( election, several environment related
National Low Carbon Cities
CCC), an independent, statutory ministries were consolidated into the
Masterplan, there are plans to place
body that advises the UK Ministry of Natural Resources,
dedicated offices in participating
government on what the carbon Environment and Climate Change
states and local authorities to
budget levels should be and (MNRECC). This new structure is
ensure common goals for
sensible pathways o achieve expected to enable more holistic
development planning.4
them. environmental governance in Malaysia.2
It is still early to note on the clarity of
Identified development areas.
roles between MNRECC and MOEc as
they relate to clean growth. Cross-sector. Horizontal
collaboration between MOEc and
Sectoral governance. Other than MNRECC would ensure economic
overarching and coordinating ministries, development and decarbonisation
the clean growth agenda is being are given the same level of
pursued independently by sectoral importance in national strategy.
ministries. An opportunity now presents
itself to MOEc and MNRECC to work Cross-sector. One of the ten
closely on sectoral pathways for clean multidisciplinary Parliament Special
growth, coordinated with the plans of Select Committees, such as the
sectoral ministries to accelerate Finance and Economy committee,
decarbonisation. could be tasked to steer Malaysia’s
clean growth agenda.5
Subnational governance. The climate
commitments made by the federal Transport. As different ministries
government can only be fully are in control of various public
implemented upon securing the transport operating services, for
cooperation of the state and local example the Ministry of Finance
governments. This can be difficult in owns Prasarana while Ministry of
states that are governed by the federal Transport owns KTMB, a strategy to
opposition coalition. A few states such better integrate these services
as Terengganu and Sarawak are making could improve overall service
strides in putting in place their own provisions.
governance structures for carbon
revenue generation, with others mooting Buildings. To scale the adoption of
similar interventions. district cooling systems, a
centralised coordination body could
be created at national level to
oversee implementation and
regulation. At the local level, high
potential locations to implement
district cooling systems could be
identified through local plans.

188 Clean Growth Handbook Malaysia

 Policy and regulation
9.2.2
Current national strategies. There has Identified strengths.
UK Success Story: Dedicated clean been notable progress in climate
Power. The National Energy Policy,
growth strategies strategy and high level vision
National Energy Efficiency Action
• The UK has dedicated plans for statements in Malaysia over the last two
Plan and Malaysia Renewable
clean growth to create a stable years. This includes the launch of a new
Energy Roadmap encourage the
policy environment. These include National Energy Policy, a progressive
adoption of renewable energy and
The UK Low Carbon Transition 12MP and the recent launch of a
energy efficiency.
Plan, The Carbon Plan, The Clean Voluntary Carbon Market by Bursa
Growth Strategy, The Net Zero Malaysia.
Transport. Low carbon transport
Strategy and The Net Zero Growth
policies cover a variety of measures
Plan. Plans are continuously NDC targets. In 2021, Malaysia
including limiting the construction
reviewed to keep up with revised increased its mitigation ambition from
of new urban highways, expanding
targets, emerging technologies that submitted in 2015 to cover seven
public bus networks in urban areas,
and foreseen challenges. For GHGs (previously three) and to put in
promotion of EVs and developing
example, in March 2023, the UK place an unconditional target to reduce
walkability masterplans.
launched a Net Zero Growth Plan carbon intensity against GDP by 45% by
to enhance the existing Net Zero 2030 compared to 2005 levels
Identified development areas.
Strategy in light of an independent (previously 35%). The country has also
review of the Net Zero strategy expanded the adaptation component, Cross-sector. As seen from the UK’s
that deemed it insufficient to meet with a focus on biodiversity and climate experience, there are benefits to
the UK’s climate targets. resilience. having a unified clean or green
growth strategy to set a shared
Clean growth policies and plans. ambition for sectors and
Malaysia’s green growth aspirations are stakeholders across the country.
set out in the 11MP and 12MP. There is no
dedicated national strategy yet, Transport. There is a need for an
although the Shared Prosperity Vision updated national transport plan
2030 and Sustainable Development that integrates public and active
Goals Roadmap come close. There are, transport modes, as well as
however, sector level plans driving emerging options such as
action including the Renewable Energy autonomous ride sharing and
Roadmap 2021, the Green Technology micromobility.
Master Plan 2017-2030 and the National
Energy Efficiency Action Plan 2016-2025. Buildings. The inclusion of minimum
There are also state and city level plans low carbon requirements in the
published, for example, by Iskandar Uniform Building By-Laws, or setting
Malaysia and Kuala Lumpur. Plans for development size that would need
Sarawak and Johor are in the pipeline. to comply with the low carbon
requirements, would support
Regulatory frameworks. The delivering low carbon buildings
Environmental Quality Act 1974 is the through the planning process.
primary legislation concerning the
environment in Malaysia. Its regulations Manufacturing. There are no
control pollutant emissions, including mandatory Environmental Product
carbon, from factories and vehicles.6 Declarations for manufacturers to
There is also the Renewable Energy Act disclose the embodied carbon of
2011, which offers incentives for their products. This needs revising to
renewable energy generation. To support scope 3 GHG emissions
participate in the scheme, individuals calculations, supply chain
must obtain feed-in approval from the collaboration on decarbonisation
Sustainable Energy Development and increasing trade requirements.
Authority.6

A Climate Change Act is expected to

come into force in late 2023 or early
2024, which should bring about step
change in climate change regulation in
the country. It will likely include GHG
emissions reduction targets for both the
short and long term, with new structures
put in place to support climate change
accountability.
Clean Growth Handbook Malaysia 189
 Standards
9.2.3
Malaysian Standards. The Department installation and maintenance of
UK Success Story: Decarbonisation of Standards Malaysia functions as both continuous emission monitoring systems
standards for managing carbon in the national standards and national for industrial premises/facilities” in 2019
the built environment accreditation body. Malaysian includes measurement of air pollutants
• In 2021, the UK government Standards (MS) specify minimum emitted from stationary sources.11 As
announced that a Future Homes requirements of quality and safety for mentioned in Section 8 , the “Green
Standard for zero carbon ready voluntary use, unless they have become Practices Guidelines for Manufacturing
homes will come into force in mandatory through legislation.7 There Sector” were also published in
2025.15 These new homes will have are a few decarbonisation related December 2022.
to be highly energy efficient and standards out of the 4,500+ standards.
use low carbon heating resulting in These include carbon assessments of Identified strengths.
75% lower emissions than current organisations and products, energy
Power. Several Renewable Energy
levels. Existing homes will also be efficiency and renewable energy
Certificates trading platforms have
subject to higher energy efficient adoption in buildings, energy efficiency
been created like the Malaysia
standards, covering aspects such of products, solar PV system design and
Green Attribute Tracking System,
as replacement of windows, heat installation, EV conductive charging
which are compliant with
pumps and fixed lighting. systems and carbon dioxide transport in
international standards such as
CCUS systems. In some cases,
CDP, GHG Protocol and RE100.12
• Beyond homes, the PAS 2080:2023 international standards are adopted
“Carbon Management in Buildings such as for GHG assessments, electric
Transport. To ensure proper
and Infrastructure” covers whole road vehicles safety specifications and
development of EV infrastructure,
life carbon management in environmental and energy management
the Energy Commission has
buildings and infrastructure. It systems. While a selection of standards
published an official guide on
integrates the transition to net exist, there is an opportunity to expand.
standards for EV charging systems
zero into the standard by
that align with global standards.13
considering the impact of assets Energy efficiency standards. Most MS
This will allow global organisations
on the wider network to reveal related to clean growth are on energy
to build infrastructure in Malaysia.
interdependencies and encourage efficiency. For buildings, MS 2680:2017
early collaboration.16 “Energy efficiency and use of renewable
Manufacturing. Minimum Energy
energy for residential buildings” and
Performance Standards are in place
• The UK’s first Net Zero Carbon the MS 1525:2019 “Energy efficiency and
for electrical appliances such as
Buildings Standard is in the use of renewable energy for non
televisions, refrigerators and air
process of being developed.17 residential buildings” provide guidance
conditioners, that require
on the effective use of energy in
certification.14
different buildings including the
provision of renewable energy.8, 9 For
Identified development areas.
products, MS 1748:2014 “Specification
for Energy Efficient Motors” and MS Transport. Malaysia has yet to
1931:2015 “Specification for Energy establish stringent standards on
Efficient Air Conditioners” provide heavy or polluting vehicles entering
guidance on the energy ratings, testing, cities or low emission zones.
certification and labelling.
Buildings. Malaysia encourages the
Guidelines to complement standards. use of rating systems, such as GBI
Several guidelines cover and GreenRe, but they remain
decarbonisation and are less official voluntary. GreenRE includes a
than standards, but they provide some criterion on embodied carbon,
direction to the market. For example, the although the points awarded for this
Construction Industry Development criterion are minimal.
Board’s “Guidelines on construction
waste management” establishes better
construction waste management
practices.10 The Department of
Environment’s “Guideline for the

190 Clean Growth Handbook Malaysia

UK Spotlight:
British Standards
Institution

Organisation profile: The British • Product testing and certification

Standards Institution (BSI) is the
independent, national standards body in • Validation or BSI-issued certificates
the UK through Royal Charter.18 Over
time, BSI has expanded its geographical • Training
remit and now works across 193
countries (including Malaysia) with over • Supply chain management software
86,000 clients across various sectors. A tools
number of BSI standards have provided
the foundation for international • Audit, risk management and
standards; BSI standards have inspired compliance services
the creation of eight of the world’s top 10
management system standards Key projects include:
including ISO 14001 on environmental • BSI signed an MOU with the
management.19 Starting off with Malaysian National Cyber Security
engineering standards, BSI has Agency on standards adoption and
diversified into many different areas certification for information resilience
including sustainable finance, and information security
decarbonisation and hydrogen.20, 21 Aside management in 202123
from standards, BSI supports other
aspects of their clients’ journey, such as • Verified and certified Sony Group in
providing training on implementing a UK to BSI’s Kitemark Energy
carbon footprint management plan and Reduction Verification Scheme for the
certification courses to become a reduction in GHG emissions achieved
professional greenhouse gas by its UK companies24
practitioner.22
• BSI shared best practices in product
Description of services: safety with accreditation bodies in
• Developing and approving standards India and trained government staff to
conduct export certification, testing,
• Assessments and certification against accreditation and quality standards
standards compliance25

Clean Growth Handbook Malaysia • Auditing and verification 191

 Other UK players in:
Standards
• Office of Gas and Electricity Markets • UK Green Building Council has a Net
regulates the technical, quality of Zero Carbon Buildings Framework,
service and quality of supply which will be superseded by the
standards for gas and electricity upcoming UK Net Zero Carbon
Buildings Standard that is being joint
• The Energy Institute publishes developed by the Better Buildings
technical guidance and standards Partnership, the Building Research
supporting the energy industry Establishment, the Carbon Trust, the
Chartered Institution of Building
• Sustainable Energy Association is a Services Engineers, Institution of
member-based industry body Structural Engineers, LETI, the Royal
supporting policy improvements such Institute of British Architects, the
as stricter energy efficiency Royal Institution of Chartered
standards Surveyors and the UK Green Building
Council
• Renewable Energy Consumer Code
ensures the highest standards of • Institution of Civil Engineers promotes
protection for consumers of usage of various standards in the
small-scale renewables engineering sector among its
members
• The Energy Saving Trust is an
organisation promoting energy • Institute of Environmental
efficiency strategies, research and Management and Assessment
supports energy efficiency standards supports and promotes sustainability
standards among its members.
• Office of Rail and Road supervises the
Rail Safety and Standards Board • The Institution of Engineering and
provide standards and guidance for Technology publishes standards in
all aspects of railway operations various engineering fields
including wellbeing, sustainability,
infrastructure and rolling stock asset • The Carbon Trust provides
integrity, customer satisfaction, certification on the Route to Net Zero
performance and safety Standard which measures and
manages an organisation’s emissions

• Financial Conduct Authority

implements international standards
and supervision in the financial sector

192 Clean Growth Handbook Malaysia

 Data and infrastructure
9.2.4
OpenDOSM. The OpenDOSM portal is an several partnerships have formed or
UK Success Story: Removing range open data platform provided by the are being explored. For example, Shell
anxiety for EV owners Department of Statistics Malaysia. It Malaysia has acquired a 50% stake in
• Recognising the importance of focuses on economic data such as Pixelbyte, which operates an EV
infrastructure in increasing EV commodity prices, household income charging booking application.29 In
adoption, the UK government and industrial production.26 Such October 2022, Gentari began a
published a UK EV infrastructure economic data could help identify and partnership with Proton New Energy
strategy in March 2022.34 The track how clean growth policies and Technology to grow EV infrastructure.30
document outlines two key initiatives enhance certain economic
intervention points: a network of indicators. Identified strengths.
high powered chargers on the
Cross-sector. Malaysia has
road and local on-street charging. StatsDW. Statistics Data Warehouse
partnered with Australia to develop
The aim of these public charging StatsDW is a data hub that compiles
a Malaysian GHG Information
facilities is to remove ‘range historical data from 1974 on economic,
Management System, an online
anxiety’, which is a typical worry social and environmental indicators.
database that will estimate
for EV owners. Data includes domestic demand
emissions by sources and removals
statistics and sectoral statistics.27 The
by sinks, consistent with the
right data on this platform could support
methodologies adopted for national
greater private sector uptake of clean
GHG inventory reporting. It is
growth initiatives. This might include
expected to be completed by the
location specific information on solar
end of 2023.31
irradiance, secondary heat sources and
industrial waste generation.
Power. Malaysia’s power grid has
capacity to take on more renewable
Sectoral emissions intensity. Sectoral
energy capacity up to 2030 without
data for Malaysia is traditionally
affecting grid stability.
categorised into manufacturing,
services, construction, agriculture and
Transport. MyRapid has recently
mining. However, emissions data is
launched a mobile application,
typically reported through energy,
PULSE, to assist public transport
waste, industrial processes, agriculture
commuters in Klang Valley, Penang
and land use change. Better alignment
and Kuantan with real-time data to
between the two datasets would enable
allow users to plan their trips.32
more accurate emissions intensity
calculations by sector. This would help
Buildings. The Sustainable Energy
prioritise initiatives that support
Development Authority has
Malaysia’s carbon intensity against GDP
launched the Building Energy Online
target.
Data Monitoring System to monitor
the energy usage by building
Grid integration of renewables. The
owners. It can provide historical
three main national power transmission
energy consumption data and allow
and distribution companies in Malaysia
users to establish energy baselines
are looking to modernise the national
for implementing energy saving
grid into a digital and flexible smart grid
measures.33
that supports two way energy flow while
maintaining voltage stability. The aim is Identified development areas.
to accommodate the growing number of
smaller and larger renewable energy Power. The need for battery storage
generation locations. in Malaysia is growing as the supply
and demand for renewable energy
EV charging stations. Under the Low increases. Malaysia plans to
Carbon Mobility Blueprint 2021-2030, introduce a battery energy system
there is a target to install up to 10,000 from 2030 onwards but may need to
public charging stations by 2025 to bring this forward to accelerate
support the uptake of EVs by consumers. renewable energy adoption.
As of 2022, some 700 charging stations
had been installed.28 To accelerate the Transport. Investments by local
roll out of charging infrastructure, government in active mobility is
critical to support first-and-last mile
connectivity for greater uptake of
public transport.

Clean Growth Handbook Malaysia 193

 UK Spotlight:
CDP

Organisation profile: CDP (formerly • Conducts benchmark exercises

Carbon Disclosure Project) is a global against peers on disclosure and
non-profit that runs a global actions
environmental disclosure system for
capital markets, companies, cities and • Organises knowledge sharing and
governments to assess their impact and networking events
compile their actions. As a result, CDP
has one of the world’s most Key projects in Southeast Asia:
comprehensive dataset on corporate • Developed and piloted the world’s
and city environmental action. CDP’s first qualitative and quantitative
disclosure system is aligned with metrics to assess how the financial
international standards such as the services sector manages forest risks
GHG Protocol, ISO 14061, Global and opportunities with eight
Reporting Initiative, Dow Jones Southeast Asian banks, including two
Sustainability Index and Task Force of Malaysian banks
Climate Financial Related Disclosures,
among others. The organisation • Provided dedicated training to two
leverages its understanding of Malaysian banks on the topics of
disclosure methodologies and data sustainable finance, forests risk
insights to support other disclosures, management and setting science-
governments and companies to align based targets
ambition.
• Supported the Indonesia Exchange
Description of services: and the Stock Exchange of Thailand
• Supports training and upskilling on to improve the Task Force of Climate
environmental disclosures Financial Related Disclosures
capacity of both organisations
• Helps organisations strengthen their through recommendations roadmaps
environmental action roadmaps and their respective markets through
capacity building workshops

194 Clean Growth Handbook Malaysia

Other UK players in:
Data and infrastructure
Data Infrastructure

• Ofgem, the UK’s electricity regulator, • UK Power Networks is the operator of

have an energy data portal on retail the electricity distribution network
markets, wholesale markets, networks across London, the Southeast and
and customer experience East of England. It is developing a
smart and flexible grid, and is rated
• VivaCity uses artificial intelligence to one of the best in the world by the
capture multimodal transport data Smart Grid Index on smart grid
with the aim of informing transport development
strategy, infrastructure investment
and maximise network performance • KrakenFlex (formerly Upside Energy) is
a platform to control distributed
• OpenUK and the Sustainable Digital energy assets to match supply and
Infrastructure Alliance are looking to demand
develop new technologies and
services for the telecoms, technology, • VoltVision digitises high and medium
software and open data markets that industrial power networks to improve
prioritise carbon reduction and efficiency and power management
energy efficiency in the economy
• Pod Point is a provider of EV charging
• Urgentem provides emissions data infrastructure for homes, the
and climate risk analytics to the workplace and public charging points
finance industry

• Terrabotics provides emissions data

and monitoring solutions, with
satellite sensing derived analytics

• London Energy and Greenhouse Gas

Inventory is an emissions inventory
from the Greater London Authority
that quantifies emissions within
London city boundary

• UK Centre for Greening Finance and

Investment was established to
increase the adoption and use of
climate and environmental data and
analytics by financial institutions
internationally

• Built Environment Carbon Database is

envisioned to be the main source of
carbon estimation and benchmarking
for the UK construction sector

Clean Growth Handbook Malaysia 195

 Market incentives
9.2.5
Feed in Tarrif. The Feed in Tariff (FiT) The GITA and GITE aim to encourage
UK Success Story: Contracts for system managed by the Sustainable investments in, and adoption of, green
Difference providing stability for Energy Development Authority obliges technology in the private sector.38
eligible renewable energy projects electricity distributors to buy renewable
• The UK government provides energy at a set rate from approved Identified strengths.
developers of renewable energy independent power. FiTs are available
for biomass, biogas, small hydropower Cross-sector. In September 2022,
projects with high upfront costs
and solar PV. Currently, all new Bursa Malaysia – the stock
and long lifetimes, such as wind
approved FiT applications will be paid exchange of Malaysia –
power developers, with direct
the FiT for 21 years, which helps position announced" enhanced
protection from volatile wholesale
renewable energy as a viable long term sustainability reporting
prices. Developers will be paid a
investment.35 requirements with the aim to raise
flat (indexed) rate for the
sustainability disclosures and
electricity produced over a 15-year
Large Scale Solar. The utility scale Large practices of listed companies.39
period, providing certainty to both
Scale Solar programme regulated by the
developers and consumers.43 Cross-sector. In December 2022,
Energy Commission was developed to
the voluntary carbon market
drive down the levelised cost of energy.
initiative was launched by Bursa
It provides revenue generation
Malaysia under the supervision of
opportunities for both landowners and
Ministry of Finance and the Ministry
solar farm developers.36 The use of land
of Natural Resources, Environment
for other economic activities beyond
and Climate Change. The Malaysian
solar power is encouraged such as
government is exploring options for
agriculture.37
carbon pricing including a carbon
Net Energy Metering. Under the Net tax and a domestic emissions
Energy Metering (NEM) scheme, excess trading scheme.40
energy produced from solar PV Cross-sector. The Revised Budget
installations by domestic, government, 2023 focuses on green technology,
commercial and industrial entities can the digital economy and SMEs. In his
be exported at a displaced cost off their budget speech, the Prime Minister
next energy bill. However, the scheme is announced the extension of the
only available in Peninsular Malaysia deadline for applying for the GITA
and Sarawak, not Sabah. and GITE to December 2025. The
incentive period for activities such
EV incentives. To encourage the uptake as solar and battery energy storage
of EVs, several incentives exist from tax systems has also been extended to
allowances to import duty exemptions. 5 years.41 The clean growth related
Further details are provided in Section incentives mentioned as part of the
6.5.4. budget speech is provided in the
Appendix.
Carbon capture allowances. The
Revised Budget 2023 proposes tax Identified development areas.
incentives for companies undertaking Cross-sector. With increasing green
in-house carbon capture and storage subsidies in the US, EU and
(CCS) activities and those undertaking elsewhere in the world, Malaysia
CCS services. The incentives are in the would benefit from introducing its
form of investment tax allowances for own funding for green technology.
capital expenditures, import duty and To support the uptake of low carbon
sales tax exemptions, among others. players in the market, there is an
opportunity to make market entry
Green technology incentives. The
for competition less challenging for
Green Investment Tax Allowance (GITA)
clean growth aspects in sectors like
applies to companies that acquire green
energy and transport.
technologies listed on the MyHijau
Directory between October 2013 to Power. In 2022, the Prime Minister
December 2025. The Green Income Tax proposed an increase in electricity
Exemption (GITE) applies to green tariff for larger companies.42 There
technology service providers listed on is an emerging opportunity to
the MyHijau Directory between January create a more equitable subsidy
2020 to December 2025. framework for fuel too.

196 Clean Growth Handbook Malaysia

 Technology and innovation
9.2.6
Adoption of 4IR. In terms of technology The Malaysian Research Accelerator for
UK Success Story: Focus on adoption, most of Malaysia’s industries Technology and Innovation (MRANTI)
developing technologies the UK can are engaged in 2IR (mass production) has recently developed a 686 acres
be globally known for and 3IR (automation). It is largely only Malaysian Research Accelerator for
• Judged using patent data, the UK the automotive and electrical Technology and Innovation Park. It is 4IR
is relatively specialised in clean equipment and electronic industries that ready and brings together researchers
technologies overall but it is have adopted 4IR.44 This is likely down to and innovators to nurture ideas into
particularly specialised in targeted programmes supporting 4IR industry changing solutions.
bioenergy, nuclear, CCUS, adoption in this industry, for example,
offshore wind and tidal stream.55 It Intel Malaysia and the Malaysian Identified strengths.
has done this by having clear R&D Investment Development Authority’s
Cross-sector. Malaysia offers a
programmes in place. work in human capital development and
wide range of incentives for R&D
research collaborations.45
such as grants from the Ministry of
• Over the last decade, UK Science and Technology and
Research & Research institutions. The National
Ministry of Higher Education. They
Innovation has delivered many Energy Centre was established in 2022
are not specifically related to clean
ongoing decarbonisation R&D as a centre of excellence on energy
growth but clean growth projects
programmes. For example, the transition. It will be a hub of
would be eligible for funding.51
Energy Research Accelerator, the collaboration for experts from foreign
Transforming Construction and local universities and industry on
Power. Sarawak has the first
Network Plus Programme and the climate change, sustainable
integrated hydrogen production
Industrial Strategy Challenge development and renewable energy.
plant and refueling station, for
Fund. There is also Universiti Teknologi
powering buses in Southeast Asia.12
Petronas’ Institute of Autonomous
• In 2021, the UK government Systems focused on developing
Transport. Asia Mobiliti (of
published the Net Zero Research autonomous decision making for
Malaysia) and Zipabout (of the UK)
and Innovation industrial plants and new energy
have teamed up to bring a
Framework covering sectors such solutions such as smart power grids and
real-time, personalised journey
as power, low carbon hydrogen digital power plants.46, 47
planner to Kuala Lumpur. This
and carbon capture.56
venture integrates real-time
Innovation centres. The Malaysian
messaging into the systems of
Global Innovation and Creativity Centre
Prasarana, who operate most of
(MaGIC) facilitates the start-up
Malaysia’s urban rail and bus
ecosystem in Malaysia. MaGIC’s Social
services.
Impact Challenge Accelerator
programme collaborated with 500
Manufacturing. Malaysia is already
Global, a venture capital firm, on
a manufacturing hub for solar PVs
accelerating the growth of social and
and EV batteries. The country is
environmental impact ventures with
emerging as a plastic waste
UNDP.48 Similarly to MaGIC, Nano
processor. Petronas Chemicals
Malaysia runs programmes that focus
Group is working to turn plastic
on industry, SMEs and start-ups that are
waste into recycled material and
designed for companies to switch from
energy sources.52
current conventional manufacturing to
nano technology enabled processes.49
Identified development areas.
This includes nano technology enabled
processes that anchor decarbonisation Power. The Malaysia Renewable
activities in Malaysia. Nano Malaysia Energy Roadmap identified
and the Intellectual Property technology that mitigates the effect
Corporation of Malaysia have signed a of renewable energy fluctuations on
MOU for a Technology and Innovation grid stability as a key driver for
Support Centre. This will assist energy transition.
innovators to leverage, protect and
manage their intellectual property Buildings. There is potential for
rights.50 greater adoption of industrialised
building systems and timber
construction.53, 54

Clean Growth Handbook Malaysia 197

 UK Spotlight:
TechX Clean
Energy Accelerator

Brief description: The TechX Clean Key projects include:

Energy Accelerator is a 15-week • 2022 and 2023 focus areas of the
programme to help early-stage clean programme:
energy start-ups accelerate their growth – renewable energy technologies,
and bring their products and services to clean fuels, hydrogen, green
market. The programme is organised by chemicals
the Net Zero Technology Centre. – carbon capture, usage and storage
– digitalisation
Description of services: – oil and gas emissions reduction
• Grant funding of up to GBP100,000 technologies
per start-up
• 2021 focus areas of the programme:
• Expert tutoring during the 15-week – efficiency, alternative energy,
programme renewable energy
– biofuels, energy management,
• Securing field trials for pilot green energy
programmes – carbon capture and carbon
reduction
• Testing their ideas and business
models with technical experts

• Tapping into the Net Zero Technology

Centre’s extensive energy industry
network

• Structuring capital raising and pitches

to investors

• Protecting their intellectual property

198 Clean Growth Handbook Malaysia

Other UK players in:
Technology and
innovation
• Informed Solutions delivers digital • Highview Power has developed liquid
data and technology solutions that air energy storage technology
help make the world a smarter, safer,
greener, and healthier place • Xampla has developed a new
biopolymer from plant protein that
• Pavegen has developed floor tiles can be used as replacements for
that convert kinetic energy from single-use plastics
footsteps into electrical energy
• Biohm manufactures sustainable
• Vertical Aerospace designs and building materials made from a range
builds electric aircraft that is able to of natural and waste materials
take-off and land vertically
• Lignacite manufactures sustainable
• Seawater Greenhouse has developed concrete blocks
the technology to grow crops in hot,
arid environments using sunlight and • Open Systems Lab is a non-profit lab
seawater that conducts research, designs, tests
and deploys digital innovations
• C-Capture performs carbon dioxide including a zero-carbon timber
removal using a post-combustion building system
capture approach
• Other technology companies can be
• OXTO Energy uses proprietary found in Datacity’s Net Zero
hardware focused on a new Real-Time Industrial Classification
generation of flywheel batteries for tool and Department for Energy
energy storage, which is applicable to Security and Net Zero’s Energy
sectors such as transport and Technology List
manufacturing

• Clean Planet Energy converts

non-recyclable plastics into clean
fuels using proprietary technology

Clean Growth Handbook Malaysia 199

 Funding and financing
9.2.7
Central bank initiatives. In 2021, Bank In 2022, the Asian Development Bank set
UK Success Story: Mature green Negara Malaysia (BNM) – the Central aside USD3.2 million to support the
finance hub, guided by up-to-date Bank of Malaysia – published a Climate development of 14 green city action
policies Change and Principle based Taxonomy plans in Malaysia. The government is
• London has long been recognised that allows financial institutions to currently exploring other international
as a global financial hub. In 2021, categorise and assess the extent to funding options such as the Green
The City of London published a which they meet or promote climate Climate Fund, the Asia Pacific
report outlining the UK as the objectives. This can then inform their Economic Cooperation Support Fund
go-to location for sustainable climate risk reporting and measures to and the Global Environment Facility. 62
finance, with its size and depth of mitigate the risk.57 BNM has several
international capital and, strong other initiatives in place. The Low Identified strengths.
capability in sustainable Carbon Transition facility finances low
Cross-sector. Malaysia is seen as a
investment strategy.67 carbon and sustainable transitions for
global leader in Islamic finance.
SMEs on a matching basis. The High
Some 60% of the world’s
• Building on London’s reputation as Tech and Green facility provides
infrastructure sukuk (Shariah
a green finance hub, the national financing to SMEs in strategic sectors.
compliant, fixed income capital
government has published several
markets instruments) are issued in
iterations of the UK’s Green Other finance facilities from the
Malaysia. Its regulatory bodies have
Finance Strategy with the latest Revised Budget 2023. The Revised
recently introduced the world’s first
one published in March 2023. The Budget 2023 speech provisioned for a
‘green sukuk’, which specifically
document contains RM3 billion Green Technology Financing
funds environmentally sustainable
recommendations on aligning Scheme (GTFS) until 2025, which
infrastructure projects.63
global financial flows with climate supports the adoption of green
and nature objectives, as well as technology in numerous sectors.58 In
Cross sector. In December 2022,
noting the importance of private addition, the Revised Budget 2023
the Securities Commission Malaysia
investment in delivering net zero speech announced that Khazanah
unveiled the Principles Based
ambitions.68 Nasional will provide RM150 million to
Sustainable and Responsible
catalyse the development of
Investment Taxonomy for the
environmentally friendly projects
Malaysian Capital Market.64
including supporting the carbon
market.58 It was also put forth that the
Power. In 2019, Petronas Corporate
Malaysian Development Bank will
Venture Capital allocated USD350
allocate up to RM6 billion to encourage
million to make direct investments in
the sustainable agenda and
startups specialising in 4IR,
automation.58
advanced materials, specialty
chemicals, future energy solutions
Retail banks. In 2022, a green financing
and new market access.65
programme launched by UOB Malaysia
in collaboration with Malaysian
Research Accelerator for Technology Identified development areas.
and Innovation aims to encourage Cross-sector. To enhance climate
sustainability adoption by SMEs.59 CIMB financing, Malaysia could adopt
has also launched its Green, Social, best practices such as Indonesia’s
Sustainable Impact Products and Environmental Fund Management
Services framework in 2021 that serves Agency that is authorised to secure
as a guide to the Bank’s sustainability funding from various sources,
finance target.60 including public, private, bilateral
and multilateral channels. As of
International funding. Over the last 2019, the Fund managed a domestic
couple of years in particular, Malaysia reforestation fund worth USD144
has received funding from several million.66
international organisations.61 In 2021, the
UK government provided GBP1.4 million
to support five innovative climate action
projects in Malaysia under the UK PACT
programme.

200 Clean Growth Handbook Malaysia

UK Spotlight:
HSBC Group

Organisation profile: HSBC Group is one • green loans/financing

of the largest banking and financial
services institutions in the world. It is • green trade loans/financing
headquartered in the UK as its principal
holding company, HSBC Holdings plc, is • green bond/sukuk
incorporated in England.69 HSBC Group
has committed to achieving net zero in Key projects:
its operations and supply chain by 2030 • In 2018, HSBC Amanah launched the
and in its financing portfolio by 2050. To world’s first Shariah-compliant United
do so, it is providing finance to Nations Sustainable Development
accelerate climate change solutions Goals sukuk worth RM500 million.
and building global partnerships to help
channel investments swiftly towards • Completed a RM30 million Revolving
sustainable projects.70 The operating Credit Facility under Green Loan
entity in Malaysia is HSBC Bank Principles to partially finance the
Malaysia Berhad (HSBC Malaysia). HSBC equity portion of a green mixed-use
Malaysia has allocated around RM1 development for Kerjaya Property
billion towards green and sustainable
financing to date in line with the group’s • Arranged the first ASEAN Green
global strategy.71 HSBC Malaysia owns Sustainable and Responsible
HSBC Amanah Malaysia Berhad (HSBC Investment sukuk issuance of up to
Amanah), the Islamic arm of the bank.72 RM260 million to partially finance two
solar power plants for Leader Energy.
Description of services:
• Provided a RM25 million term
• sustainability KPI-linked sustainable loan to partially finance a
loans/financing liquefied carbon dioxide plant for
Kelington Group.
• sustainable supply chain financing

• supplier term financing

Clean Growth Handbook Malaysia 201

 Other UK players in:
Funding and
financing
Commercial banks. These banks offer •Other investment institutions. These
various sustainable finance products are financial institutions which focus on
and services such as renewables investing instead of commercial banking
financing, sustainable infrastructure services. A number of the institutions
investment: listed below have a mandate to invest in
assets that are clean growth-friendly:
• Standard Chartered
• Green Finance Institute
• Lloyds Bank
• Macquarie Green Investment
• Barclays Group

• Royal Bank of Scotland • Abrdn (Formerly Standard Life

Aberdeen)
• NatWest
• The Renewables Infrastructure
• Metro Bank Group

• The Co-operative Bank • Clean Growth Fund

• Paragon Bank • Foresight Group

• Starling Bank

• Treecard

202 Clean Growth Handbook Malaysia

 Capabilities
9.2.8
Awareness and skills baseline. The Vocational training. Technical and
UK Success Story: Building National Low Carbon Cities Masterplan Vocational Education and Training
capabilities through research identified limited talent as a key (TVET) integrates education, training
programmes and technology challenge for developing and and skills development across a diverse
competitions implementing low carbon plans. This range of occupational fields. It is offered
• Many UK universities have observation is supported by a KPMG by Malaysian polytechnics and is
dedicated programmes on survey conducted in Malaysia last year, gaining popularity. Certain polytechnics
advancing clean growth such as which showed that 16% of respondents offer programmes on environmental
the ZERO Institute (University of believe Malaysia lacks skills and protection and incorporate green
Oxford), Grantham Research expertise to implement low carbon technology into their curriculum.76
Institute (London School of solutions.73 This is compounded by low
Economic and Political Science), public awareness around Identified strengths.
and Cambridge Zero (University of decarbonisation, which affects
Cross-sector. Since 2022, the
Cambridge). constructive public participation.4 To
UNESCO-UNEVOC supports TVET
address this, the National Low Carbon
institutions in the implementation of
• The UK government has Cities Masterplan and the Green
green technologies in the syllabus
developed several low carbon Technology Master Plan propose
for Electrical Engineering in several
research hubs to grow capabilities upskilling the public and private
polytechnics.77
such as the Net Zero Transport for workforce through capacity building
a Resilient Future Research Hub79, activities, peer learning through
Identified development areas.
the UK-HyRES project on professional organisations and sectoral
hydrogen and alternative liquid knowledge sharing platforms.4, 74 It is Cross-sector. Training on carbon
fuels80, and the National also proposed to create more public emissions modelling is required to
Interdisciplinary Circular Economy sector positions for low carbon career support states and cities developing
Research Hub. paths, especially in audit and carbon quantitative emissions reduction
calculations.4 targets at the local level.
• In addition, the UK government
has launched a number of grant Training. The Human Resources Power. Knowledge sharing is
funded technology competitions Development Corporation (HRDC) plays needed relating to maintenance of
on hydrogen, zero emissions vessel an important role in Malaysia's talent renewable energy facilities,
and infrastructure, and CCUS to development through a levy collection especially to address gaps of
support knowledge development programme from employers to fund knowledge arising from supply or
and sharing as well as reducing training. Training on efficient energy installation coming from abroad.
the cost of deployment of these management, corporate ESG and
technologies. sustainability are available and gaining Transport. Higher education
popularity.75 Industry associations are syllabus should include holistic
also making courses available on transport planning to improve
decarbonisation, some of which are multimodal journeys.
claimable against the HRDC levy, such
as Peterson’s two day seminar on green Buildings. Training is needed on
buildings. whole life carbon assessment for
buildings to inform decarbonisation
Higher education. Higher education strategies.78
institutions are recognising the need to
embed clean growth into syllabuses. For Manufacturing. Industry-wide
example, Sunway University and training is needed on life cycle
University Malaya offer courses on assessments, environmental
Sustainable Development, the National product declarations and how the
University of Malaysia offers courses on approaches presented in the
Low Carbon and Hydrogen Technology, Malaysian Green Technology And
and University Technology Malaysia Climate Change Corporation’s
launched a Low Carbon Asia Research Green Practices Guideline for
Center. This will support a future working Manufacturing Sector can be put in
generation that understands the practice.
importance of clean growth.

Clean Growth Handbook Malaysia 203

 UK Spotlight:
Energy Systems
Catapult

Organisation profile: Energy Systems • Whole Systems and Networks: Equip

Catapult is an energy-focused clients with the evidence, insights and
independent, non-profit centre of innovations needed to deliver the net
excellence that was set up to bridge the zero energy system.85
gap between industry, government,
academia and research. For this reason, • Energy Launchpad and International:
Energy Systems Catapult plays a key Help high-growth potential start-up
role in accelerating the transformation businesses to thrive and make
of the UK’s entire energy system, taking connections with domestic and
a whole-systems view of the sector and international partners.86
seeking to address innovation priorities
and market barriers. The Catapult Key projects:
supports energy companies, network • Provided start-up incubation services
operators, industrial sites and to UK innovators interested in
businesses navigate net zero in the UK deploying smart energy products in
and abroad.81 the Thai market.87

Description of services: • Launched the Innovating for Clean Air

• Net Zero Homes: Deliver real-world project with partners in Bengaluru,
testing, expertise and investment for India which involved an open
zero carbon houses to help home innovation call to UK-based SMEs to
energy innovators expand.82 develop solutions to the city’s EV and
air quality challenges.88
• Net Zero Sites: Provide guidance
including tools and insights to help • Developed a comprehensive,
non-domestic estate decarbonise data-driven, and cost-effective Local
rapidly and effectively.83 Area Energy Plan for Peterborough to
decarbonise the whole energy
• Net Zero Places: Mobilise plans, system.89
processes, projects and partners
needed to decarbonise local areas by
empowering key stakeholders.84

204 Clean Growth Handbook Malaysia

Other UK players in:
Capabilities
• The Grantham Research Institute on • Centre for Alternative Technology
Climate Change and the Environment offers courses related to sustainability
– London School of Economics and such as environmentally friendly
Political Science does policy-relevant building techniques, ecology and
research and training on climate renewable energy.
change and the environment
• Centre for Sustainable Solutions –
• The Energy Saving Trust provides University of Glasgow provides
energy advice training to companies education, research and partnerships
intending to upskill their staff on related to social foundations of
providing high quality energy current and future generations
efficiency advice to customers
• Solar Skills London – Solar Energy UK
• Edinburgh Climate Change Institute – created a solar careers hub and built
University of Edinburgh conducts career pathways for solar experts to
research, innovation & training on low increase the number of registered
carbon knowledge into social and solar installers in London
economic progress
• The Catapult Network comprises of
• The National Energy Foundation has a nine catapults all tasked to transform
free training programme for UK’s capability for innovation in their
businesses wanting to reduce their respective sectors. Those most
carbon footprint at work and green relevant to clean growth include:
their business
- Energy Systems Catapult – refer to
• Cambridge Zero – University of previous page for further information
Cambridge conducts research and
training towards resilient and - Offshore Renewable Energy Catapult
sustainable zero-carbon world as well
as developing greener technologies - Connected Places Catapult

• Zero Carbon Research Initiative – - High Value Manufacturing Catapult

University of Liverpool designs
strategies to help businesses achieve
the UK Governments plan to become
Net Zero Carbon by 2050

Clean Growth Handbook Malaysia 205

 Collaborations
9.2.9
Sectoral collaborations. There are Identified strengths.
UK Success Story: UK Battery several ongoing collaborations looking
Cross-sector. Public Private
Industrialisation Centre that brings to decarbonise different sectors. As
Partnerships in Malaysia have
together stakeholders from public and mentioned in Section 9.2.6, a National
demonstrated benefits for the
private sectors Energy Centre has been launched to
government and the public, with
• The UK Battery Industrialisation foster collaboration in renewable
projects such as KL Sentral
Centre brings together industry energy. There are several power related
integrated transport hub and the
players, entrepreneurs, industry organisations that are working
light rail transit lines in Kuala
researchers and educators in a on low carbon initiatives. In transport,
Lumpur.95 In 2022, Malaysian Green
facility with the aim of scaling up TNB Fuel Services launched a
Technology and Climate Change
existing or new battery technology partnership with MNA Fuel Services,
Corporation and Envision Digital
with commercialisation in mind. Itochu and Cement Industries of
signed a partnership to jointly
The centre is open for use by all Malaysia on a study of fuel sources for
develop a low carbon operating
organisations and is equipped cleaner power generation in December
system to allow local businesses to
with specialised manufacturing 2022.90
monitor and reduce their carbon
equipment, supported by a team
emissions.96
of engineers, technicians and In the buildings sector, the Master
back office staff.99 Builders Association Malaysia is
Cross-sector. In 2019, the Joint
advocating sustainable construction
Committee on Climate Change
• AMTE, a manufacturer of through collaborations with its members,
(JC3) was set up, comprising the
lithium-ion battery cells, was the government institutions and NGOs.91 In
Securities Commission, Bank
first commercial customer looking manufacturing, the Federation of
Negara, Bursa Malaysia and 19
to scale from product Malaysian Manufacturers and the
other financial sector players. The
development to large scale Malaysian International Chamber of
JC3 seeks to accelerate responses
manufacturing.100 Commerce and Industry signed an MOU
towards ensuring a smooth
in 2022 to establish a joint task force
transition to a low-carbon economy,
• The centre is publicly funded and that explores trainings on ESG matters.92
with a focus on governance,
plays a key role in the UK
disclosure, innovation and
government’s Faraday Battery CAN. The CEO Action Network (CAN) is
awareness.97
Challenge led by UK Research and a closed-door informal network of CEOs
Innovation. of leading Malaysian businesses,
Identified development areas.
focused on sustainability advocacy and
capacity building.93 Its partnership with Cross-sector. Corporate Malaysia
Climate Governance Malaysia on could play a greater part in
achieving net zero emissions by 2050 supporting the start-up ecosystem,
drives a series of multi-ministerial for example, by creating an
engagements to draft policy environment for start-ups to
recommendations and provide signals develop collaborations, which could
from the private sector. 94 in turn lead to investment
opportunities.98
Bilateral collaboration. Malaysia has
many bilateral collaborations in play
with countries like the UK, Japan, South
Korea and the EU as stated in Sections 2
to 8. Beyond this, the Institute of
Strategic and International Studies
Malaysia is a research organisation
actively involved in track two diplomacy
on topics like climate change. The
Institute has played a role in fostering
closer regional cooperation through
forums such as the Asia-Pacific
Roundtable and the Pacific Economic
Cooperation Council.

206 Clean Growth Handbook Malaysia

UK Spotlight:
ASEAN Low Carbon
Energy Programme
in Malaysia

About the programme: The UK Foreign, Key initiatives in Malaysia:

Commonwealth and Development • Assisted Capital Markets Malaysia in
Office is a ministerial department creating the Malaysian Sustainable
pursuing development and diplomacy Finance Initiative. The initiative
internationally. The ASEAN Low Carbon supported capacity development via
Energy Programme is an initiative it led training courses and workshops
to promote inclusive economic growth in
Southeast Asia through more green • Collaborated with the Central Bank of
finance flows for the deployment of low Malaysia and the JC3 sub-committee
carbon energy technologies and energy 4 on capacity building in the financial
efficiency measures. The programme industry on the topic of climate
commenced in 2019 and concluded in change
early 2023. The UK Prosperity Fund
• Supported MBSB Bank via technical
supported this programme to provide
assistance on the development of the
policy support, capacity building and
bank’s Sustainability Sukuk Framework
technical assistance to ASEAN
countries. Partner countries include • Supported the Malaysian Green
Malaysia, Indonesia, the Philippines, Technology and Climate Change
Thailand and Vietnam. Corporation on enhancing the
government’s green technology
Programme’s focus areas: directory MyHIJAU. The enhancements
• Green finance and energy efficiency aim to help financial institutions make
advisory energy efficiency lending decisions

• Conducted a thermal energy study on

• Facilitating partnerships between
the baseline thermal energy use in the
governments, private sector
food and beverage sector, developed
companies and international
thermal energy guidelines for boilers
organisations to promote the
based on this and best available
deployment of low carbon energy
technologies, and supported the
technologies
Energy Commission to prepare for
enforcing the Energy Efficiency and
Conservation Act

Clean Growth Handbook Malaysia 207

 Other recent examples of:
UK-Malaysia initiatives
Other recent examples of programme / • Smart City Handbook – Malaysia: The
project collaborations between the UK Handbook, published in 2021, provides
and Malaysia related to clean growth a foundational understanding of
includes, but is not limited to: smart city concepts in Malaysia and
lists out potential partnership
• Next Generation Green Data Centres: opportunities between Malaysian and
This project, funded by the British organisations.
Newton-Ungku Omar Fund, aimed to
integrate existing technologies to • UK-Malaysia Digital Innovation
cool data centres, and convert heat Programme: This is a programme by
and energy released from data the UK Government’s Digital Trade
centres into electricity. The project Network in partnership with Sunway
connected academic partners in iLabs. The programme aimed to
Malaysia and the UK with commercial connect UK net zero digital
partners from the UK. This project was technology businesses with leading
completed in 2019. Malaysian corporates. The
culmination of the programme was a
• Global Future Cities Programme - Demo Day in March 2023 by 14
Iskandar Malaysia and Melaka: The selected net zero tech companies
Global Future Cities programme from the UK spanning the areas of
provided technical assistance to 19 food security, smart cities,
cities across 10 countries with the aim sustainable and efficient energy, and
to encourage sustainable circular economy.
development and increase prosperity
while alleviating urban poverty. The • UK Partnering for Accelerated
programme had three thematic Climate Transitions: This programme
pillars: urban planning, transport and supported green transition projects in
resilience. In both Iskandar Malaysia Malaysia covering the topics of green
and Melaka, the programme helped finance, energy, nature and
develop smart and sustainable low-carbon policy. It was launched in
mobility systems. This programme was July 2020 and will complete in 2023.
launched in 2020 and completed in
2022.

208 Clean Growth Handbook Malaysia

 Overview of enablers in the
9.3 UK
To contrast with Table 9.1, Table 9.2
below sets out the key findings from the
enablers review in the UK. While each
country has different enabling
requirements based on governance,
culture and maturity, the enablers from
the UK could be explored further and
adapted to suit Malaysia’s needs.

Table 9.2 :
Key findings related to enablers in the UK

Directive enablers

Governance Policy and regulation Standards

The Climate Change Act 2008 The UK has a stable and clear policy There are established clean growth
requires the UK government to set direction for clean growth. The UK’s related sector specific and sector
legally binding ‘carbon budgets’ decarbonisation and growth journey is agnostic standards. For example, the
towards the 2050 emissions target. guided by both overarching policies PAS2080:2023 standard covers whole
The Climate Change Act also and dedicated roadmaps for specific life carbon management in buildings
established the Climate Change industries. Examples include the UK and infrastructure. There are also
Committee, an independent, Low Carbon Transition Plan, The British Standards available on energy
statutory body that advises the UK Clean Growth Strategy, The Net Zero management, GHG emissions
government on what the carbon Strategy, The Net Zero Growth Plan verification, carbon neutrality, low
budget levels should be. and The UK Green Finance Strategy. carbon materials and circular
economy.

Business case enablers

Data and infrastructure Market incentives Technology and innovation

There is a growing body of data and Market incentives have been in The UK has put a strong emphasis on
infrastructure to support clean place for many years. For example, nurturing innovation in low carbon
growth. The Office for National in power, a Feed in Tariff between technologies, processes and systems
Statistics has launched a portal that 2010 and 2019, and an ongoing to bring down the cost of clean
visualises key climate change Contracts for Difference scheme technologies, not just for the UK but
indicators and assesses the UK’s have supported the delivery of for other countries too. Between 2015
progress towards Net Zero.101, 102 The renewable energy projects in the UK. and 2021, the government had
Greater London Authority has In transport, a congestion charge invested GBP2.5 billion in low carbon
webmaps and data services on was introduced in 2003 to deter innovation.
things like decentralised energy and drivers from entering central London
electric vehicle infrastructure.103 during peak hours.

Implementation enablers

Funding and financing Capabilities Collaboration

The UK’s latest Green Finance The UK has been developing There are many collaboration
Strategy seeks to cement UK’s homegrown clean growth platforms at play in the UK. The 20
position at the forefront of green capabilities via organisations like hydrogen and CCUS technology
finance and how the UK can direct the Catapult Network. Many clusters supported by the
investments to meet their climate universities such as Cambridge, government bring together a
objectives.104 The UK government Exeter and Strathclyde also have plethora of public and private
has also raised over GBP18 billion105 dedicated courses and research players.107 The private sector led
through the sale of green gilts to institutes focused on clean growth. Major Infrastructure Resources
fund zero emissions buses, offshore One example is the Renewable Optimisation Group brings together
wind and home decarbonisation Energy and Decarbonisation the UK’s infrastructure operators to
schemes.106 Technologies MSc from the collaborate on the theme of circular
University of Strathclyde. economy.108

Clean Growth Handbook Malaysia 209

 Section 10

Key takeaways, next steps

and conclusion
This section summarises UK-Malaysia collaboration opportunities in clean growth and
considerations for successful collaborations.

210 Clean Growth Handbook Malaysia

 Summary of key collaboration
10.1 opportunities by sector
Sector collaboration opportunity Table 10.1 summarises the key
themes. Based on the four priority collaboration opportunities identified by
sector market deep dives, there are five theme and sector. While these are the
emerging themes of UK-Malaysia main collaboration opportunities, there
collaboration. These include: are many others that can be derived
from the Malaysian market overviews for
• Scaling infrastructure development – each sector and the UK expertise on
from finance to project development, offer. Table 10.2 summarises the key
the UK can support with capital as collaboration opportunities on
well as a greater pool of lessons developing the enabling environment in
learned in implementation having Malaysia by enabler category and sector
been on the clean growth journey based on the identified development
slightly longer than Malaysia areas in Malaysia in Section 9. Again,
there are likely to be many more
• Design and engineering services – collaboration opportunities under
the UK is a service based economy enablers but the proposals are limited to
that continues to export design, the content shared in Section 9. There is
engineering and planning services some overlap of collaboration
across the globe opportunities in Table 10.1 and Table 10.2
since addressing certain barriers with
• Setting governance and standards – enablers is considered central to
many of the clean growth developing sector based clean growth
opportunities identified for Malaysia opportunities.
are relatively new in the market
without the necessary governance, Finance and transaction services. As
ecosystem and standards in place. mentioned before, the UK is a global
The UK has had to consider these financial hub with investors and lenders
aspects already having moved from across all four priority sectors. However,
pilots to commercial scale activities some of these financial institutions may
not have an existing footprint in Malaysia
• Adopting technology and innovation or wider Asia. This may require additional
– clean growth is unlike business as engagement to support these institutions
usual and requires innovation in with the Malaysian context. With a more
materials, products and business mature clean growth market, the UK is
models. Clean growth has infiltrated also well versed in due diligence and
UK universities and research transactions services with clean growth
institutions with many striving to companies being bought over by or
develop affordable options for both merging with other clean growth
UK and global adoption companies over many years.

• Tools and data platforms – reliable As finance and transaction services cuts
data is needed to make informed across all four priority sectors, these
decisions about new clean growth have not been explicitly mentioned in the
initiatives, technologies or business succeeding four pages.
segments. The UK understands this
with many sceptical organisations at
the beginning of the country’s clean
growth journey requesting data or
tools to acquire data that help
signpost the clean growth opportunity

Clean Growth Handbook Malaysia 211

 Table 10.1 :
Summary sector collaboration
opportunities by theme

Collaboration
Power Transport Buildings Manufacturing
theme

Scaling • Developing integrated • Rolling out E-Buses - • End-to-end

infrastructure solar PV and battery and developing renewable energy
development • Diversifying bioenergy associated charging implementation for
plants with different infrastructure industrial sites
biomass waste • Developing green port
feedstocks infrastructure

Design and • Supporting the • Adopting resilient • Design and delivery of • Designing industrial
engineering technical and transport asset low carbon buildings parks that adopt
services financial feasibility of management including industrial symbiosis
small-scale strategies for rail architecture, • Design and
hydropower projects engineering and implementation of
• Design and adoption smart energy industrial CCUS
of grid stability buildings clusters
measures including
BESS, hydrogen and
pumped hydro

Setting governance • Developing safety • Developing integrated • Update of building -

and standards guidance across the transport plans and regulations and
full value chain of logistics strategy at guidelines in relation
nuclear development both national and to zero energy
activities local levels buildings and low
• Developing standards carbon construction
and governance • Governance and
around hydrogen and implementation of
carbon storage district energy
systems

Adopting • Commercialising BESS • Scaling biofuel and • Adoption of low • Use of 4IR
technology and technology SAF production from carbon construction technologies for
innovation • Retrofitting fossil fuel globally recognised materials and energy efficiency,
power plants and gas sustainable sources construction renewable energy
network for renewable techniques and circular economy
and transition fuels adoption
• Circular economy
opportunities for
automotive
components,
electrical and
electronic products,
and plastic packaging

Tools and data - - - • Evidence-based

platforms identification of
industrial energy
efficiency measures

212 Clean Growth Handbook Malaysia

Table 10.2:
Summary enabler collaboration opportunities

Collaboration
Cross-sector Power Transport Buildings Manufacturing
theme

Governance Approaches on - Developing an Approaches to -

horizontal integrated national and local
collaboration on transport planning governance for
economic strategy that clearly implementing
development and lays out roles and district cooling
decarbonisation responsibilities of systems
different
stakeholders

Policy and Developing a - Developing an Updating the Developing and

regulation unified clean or integrated Uniform Building introducing
green growth transport planning by-
- laws to include Environmental
strategy to set a strategy that minimum low Product Declaration
shared ambition for integrates public, carbon requirements to the
sectors and private, active and requirements market
stakeholders across autonomous modes
the country

Standards - - Establishing Integration of -

stringent standards embodied carbon
on heavy or in green building
polluting vehicles certifications
entering cities or
low emission zones

Data and - Developing and Supporting local - -

infrastructure introducing battery government in
energy system active mobility
before 2030 to planning
accelerate
renewable energy
adoption

Market incentives Introducing Developing an - - -

additional funding equitable electricity
for green tariff framework
technology

Technology and - Adoption of - Adoption of -

innovation technology to industrialised
mitigate the effect building systems
of renewable and timber
energy fluctuations construction
on grid stability

Funding and Developing a net - - - -

financing zero carbon funding
and financing
strategy for
identified low
carbon
implementation
measures

Capabilities Training on carbon Knowledge sharing Developing higher Training on whole Training on product
emissions on maintenance of education syllabus life carbon life cycle
modelling to renewable energy to include holistic assessments for assessments and
support states and facilities transport planning buildings environmental
cities developing product declarations
emissions reduction
targets

Collaboration Developing a - - - -
strategy to support
the low carbon
start up ecosystem

Clean Growth Handbook Malaysia Lo

213
 Doing business in Malaysia as
10.2 a UK company
Located in Southeast Asia, Malaysia In general, Malaysians are multilingual
spans across the South China Sea and with fluency in two or more of the
consists of two main regions, Peninsular following languages: Malay, English,
Malaysia and East Malaysia. The Mandarin and Tamil.4 English is widely
country has a multicultural population of used in the country, which eases
33 million. Malaysia is one of the most communication between the local
developed and prosperous countries in workforce and potential UK companies
Southeast Asia. According to the World that wish to do business in Malaysia.5
Bank’s Ease of Doing Business Index
2019, Malaysia is ranked 12th in the Although the term ‘clean growth’ is new
world, making it one of the best to Malaysia, various policies, plans and
countries in the world for business.1 strategies in recent years have
Malaysia is also the best country in incorporated clean growth-related
Southeast Asia for foreign investment, concepts. With Malaysia’s transition
based on the Global Opportunity Index towards net zero expected to gain
2022.2 traction in the coming years, the
Malaysian market could be an attractive
Malaysia has well-developed banking market for UK companies to enter and
and financial sectors, good do business.
infrastructure and business-friendly
regulations as well as policies that make In the process of developing this
setting up business in Malaysia relatively Handbook, several considerations have
straight forward. On average, only 17.5 emerged for UK companies looking to
days are needed to set up a business in enter the Malaysian market through
Malaysia compared to the regional collaborations or otherwise. These have
average of 34.9 days.3 been summarised in Figure 10.1. A
selection of annual industry events and
conferences related to clean growth in
Malaysia that UK companies may wish
to attend or showcase their products or
services at is provided in Figure 10.2.

Figure 10.1:
Strategies UK companies can
consider for successful collaborations in
Malaysia

Engage public and private sector Look into local companies to Register your business entity Identify available incentives and
entities collaborate or partner with applicable taxes
• Incorporate your business with
• UK Department for Business and • Some sectors require the Companies Commission of • The Malaysian Investment
Trade partnerships with a local Malaysia Development Authority should
company to fulfil shareholding be able to support with
• British Malaysian Chamber of requirements, be eligible for • Apply for necessary permits and identifying relevant incentives.
Commerce government contracts and be licenses from Ministry of Finance Examples include:
eligible for incentives (for companies interested in – Green Technology Financing
• Malaysian Investment bidding for government Sche me supports adoption of
Development Authority • Foreign ownership of utility scale contracts) and Ministry of green technologies
power companies is restricted Investment, Trade and Industry – Green Income Tax Exemption for
• Malaysian industry associations due to their strategic nature (for companies interested in a green technology service
manufacturing license) providers
• Companies Commission of • A local professional engineer – Green Investment Tax
Malaysia must sign off on building plans Allowance for companies with
and drawings eligible green technology assets
– Electric vehicles: Full import duty
• Foreign investors are allowed to exemption on components for
hold 100% equity in new locally assembled EV
manufacturing projects but not – Carbon capture and storage:
for manufacturing Tax deduction on fees incurred
related services for CCS services

• Note some incentives cannot be

secured in parallel with others

214 Clean Growth Handbook Malaysia

Figure 10.2:
Selection of annual industry events and
conferences related to clean growth in
Malaysia

Power Buildings

Organiser : AMB Tarsus Organiser : GreenRE & REHDA Institute

Name : International Energy Week Forum Name : Green Build Conference
Focus : Largest energy event in Borneo, themed Focus : Sustainable built environment focused
"Transitioning Towards A Net Zero conference hosting experts who have
Carbon Future" made impact in the sustainable real
estate industry

Organiser : British Malaysian Chamber of Commerce Organiser : Informa Markets

Name : Climate Action Week Name : ASEAN M&E SHOW
Focus : 5 day progamme featuring organisations Focus : Featuring 5 power packed engineering
and individuals taking active steps events including ASEAN Ecolight, Tenaga
towards climate action Expo & Forum, Green Energy Expo &
Forum, and more

Organiser : Informa Markets Organiser : Zak Exhibitions & Conferences

Name : ASIA Water Name : Zak World of Façade
Focus : Region’s leading water and wastewater Focus : Global conference on façade design and
event for emerging Asia engineering showcasing sustainable
innovations and challenges in the
construction industry

Organiser : Petronas Organiser : PAM and CIS

Name : Energy Asia Name : ARCHIDEX
Focus : Thought leadership event to advance Focus : International architecture, interior design
solutions and develop clear targets to and building exhibition in Malaysia
achieve a net zero future for Asia

Transport Manufacturing

Organiser : TDH Rail Organiser : Messe Frankfurt and SHRDC

Name : Rail Solutions Asia Name : Intelligent Manufacturing
Focus : Railway show combining an exhibition Focus : Conference led event spotlighting
and conference, and The Annual Malaysia’s leap into Industry 4.0
Congress of the Asian

Organiser : Terrapinn Organiser : NRG Exhibitions and Fireworks Trade

Name : Asia Pacific Rail Name : PMAX
Focus : Bringing together rail leaders from across Focus : Smart manufacturing expo in Penang
the region to discuss the future of rail in
Asia.

Organiser : REAM Organiser : MNRECC & MGTC

Name : Malaysian Road Conference Name : iGEM
Focus : Conference and congress themed Focus : Southeast Asia’s leading trade event for
“Towards Resilient Road Infrastructure” green technologies and eco solutions

Organiser : AMB Tarsus Organiser : AMB Tarsus

Name : EVM Asia Name : Smart Manufacturing Expo
Focus : First international exhibition dedicated to Focus : Malaysia's biggest international smart
the manufacture of electric, hybrid and manufacturing technology and solutions
autonomous vehicles exhibition

Clean Growth Handbook Malaysia 215

 Conclusion
10.3
Malaysia clearly has ambitions in clean There are a growing body of clean
growth. It has started the journey by growth-related programmes, projects
putting in place the relevant sectoral and initiatives underway, but for action
policies, market incentives and political scale, clearer governance and
messaging. Malaysia outlined its standards are needed to support
ambitions to adopt low carbon meaningful collaborations. Identified
approaches to achieve sustained skills and knowledge gaps can also start
economic growth in the country’s latest closing from learning by doing and
five-year development plan – the 12MP. learning from others. Collaborations
The country is looking to solidify its net within Malaysia and with other nations
zero carbon target through the LT-LEDS will need to intensify to accelerate
study, which is likely to be incorporated implementation, from both a technical
into the country’s upcoming Climate and financial standpoint. Malaysia will
Change Act, where reaching net zero need to invest as much as USD415 billion
may become legally binding (like in the in order to achieve net zero carbon by
UK). 2050.

Malaysia’s economy is expected to triple The UK stands to be an ideal partner in

in size by 2050. As the country’s Malaysia’s clean growth transition. It
population increases from 33 million builds on many years worth of bilateral
today to over 41.5 million over the next and industry collaborations between
30 years, primary energy supply in both countries. The UK also has a long-
Malaysia is set to increase by 60% over standing history of international
the same period. A step change from co-operation in tackling climate change
business as usual is needed if clean to ensure lessons learned from its own
growth is going to be achieved as it journey, such as setting a clear policy
requires reversing historic trends that direction and investing in clean
have seen GHG emissions grow as the technology development, are shared
economy grows. This requires a more with other nations. This was one of the
coordinated approach where national key reasons behind the Malaysia-UK
sector agnostic ambitions are tied to Climate Partnership Agreement, which
sectoral policies. was signed by the two countries in June
2022.
Ambitious decarbonisation
commitments will need to be backed by This Handbook signposts almost 40 key
clear strategies and measurable actions collaboration opportunities across four
to ensure Malaysia becomes a trade priority sectors and nine enablers that
partner of choice. The supply of low Malaysia and the UK can embark on,
carbon products is becoming a key although there are many others that can
factor in trade considerations as be explored too based on the evolving
countries look for low carbon trade demand of Malaysia’s economy. It
partners to reduce their own supply should be noted that while this
chain emissions. Designing energy Handbook focused on four priority
efficient manufacturing facilities, sectors, a national plan would need to
decarbonising the national grid and low be holistic with other sectors like waste,
carbon logistics will all play a role here. water and forestry also considered. If
Malaysia were to consider a dedicated
green growth or clean growth strategy,
it could set a shared ambition for sectors
and stakeholders across the country.

216 Clean Growth Handbook Malaysia

Appendix

UK clean growth company

directory

Clean Growth Handbook Malaysia 217

 Public sector and government
Cross sector Power
• Department for Business & Trade • Ofgem
• Department for Environment, Food & Rural Affairs • UK Atomic Energy Authority
• Department for Energy Security and Net Zero
• Environment Agency Transport
• Foreign, Commonwealth & Development Office • Department for Transport
• Greater London Authority • Office for Zero Emission Vehicles
• Innovate UK • Net Zero Transport Board
• Loti
• North Sea Transition Authority Buildings
• UK Export Finance • UK Government Property Agency
• UK Research and Innovation

Private Sector
Cross-sector Other existing directories
• Abbott Risk Consulting
• Anthesis Group Cross-sector
• Arup • Datacity’s Net Zero Real Time Industrial Classification
• Aurrigo tool
• Atkins • Department for Energy Security and Net Zero’s Energy
• Baringa Technology List
• Brighter Green Engineering
• Capula Power
• Carbon Trust • The Association for Renewable Energy & Clean
• Cotopaxi • Technology’s Members Directory
• Costain • The Association of Decentralised Energy
• CPH2 • Members Directory
• CR Plus • Solar Energy UK Members Directory
• Eadon • British Hydropower Association Database
• Consulting • UK Hydrogen and Fuel Cell Association Members
• Everledger • Directory
• Emesis • Nuclear Industry Association Members Directory
• Enverse
• Ensus Transport
• HR Wallingford • Rail Forum Member Directory
• Hydrogen East • ChargeUK Founding Members
• Informed Solutions
• ITM Power Buildings
• Jaguar Land Rover • UK Green Building Council Membership Directory
• Johnson Matthey
• LettUs Manufacturing
• Grow • MAKEUK – The Manufacturers’ Organisation
• Mott Macdonald • British Electrotechnical and Allied Manufacturers
• NNFCC Association BEAMA
• Nova Pangaea Technologies
• Olleco
• PM
• PROjEN
• Pinsent Masons
• Protium
• Ricardo
• ReFood
• Rolls Royce
• Saria
• Sylvera
• Wood
• WSP

218 Clean Growth Handbook Malaysia

Private Sector
Power
• Advanced Biofuel Solutions • KrakenFlex
• AFC Energy • Lightsource bp
• Agrivert • Locogen
• Allen Gordon • Loka Energy
• Altec Energy • Longevity Power
• Anesco • Magnox
• Antech • Marches Biogas
• Argent Energy • Meteor Power
• Artemis Technologies • Metropolitan UK
• Bio Capital • MGT Teeside
• Bioenergy Infrastructure Group • NationalgridESO
• BioteCH4 • Octopus Energy Group
• Bssec • OnGen
• Carbon Clean • OXTO Energy
• C Capture • Pager Power
• Ceres • PeakGen
• Clean Planet Energy • Phycobloom
• Cumbria O&M Services • Pinnacle Power
• Derwent Hydroelectric Power • Pivot Power
• Drax Group • Powersystems
• Easson Energy • Powervault
• Ecotricity • Prema Energy
• Energetik • Progressive Energy
• Ethical Power • Renewable Energy Assurance
• Flexitricity • Renewables First
• Future Biogas • Ryse Energy
• Gasrec • Seawater Greenhouse
• Green Enco • Sellafield
• Glacier Energy • Scottish Gas Networks
• Graviticity • Solarsense
• Green Highland Renewables • SSE Renewables
• Glen Hydro • Supercritical
• Hallidays • Sustainable Control Systems
• Harmony Energy • Statera Energy
• H2GO • Storegga
• Highview Power • UK Power Networks
• HIVE ENERGY • Urenco Group
• HyDeploy • Velocys
• Hydroplan Group • VitalEnergi
• HyNet North West • Vivergo Fuels
• Inteb • VoltVision
• InterGen • Zenobe
• JF Nuclear

Clean Growth Handbook Malaysia 219

 Private Sector
Transport
• Action Vision Zero • Plowman Craven
• Amey Rail • Pod Point
• Arrival • Priestman Goode
• Babcock Rail • Railway Project Services
• Balfour Betty Rail • Safe Road System
• Baro Vehicles • See.Sense
• Beryl • Serco
• Cargo Bike Share • Signalbox
• City Infinity • Steer
• Colas Rail • Switch Mobility
• Connected Kerb • Tevva
• Crossrail International • TfL
• Dock Y • Transdev UK
• DPD • Trapeze Group UK
• Equipmake • Unipart Rail
• Future Motors • Unitrove
• Go.Jauntly • Vertical Aerospace
• Gridserve • VivaCity
• Gul-e • Vital EV
• HS2 • Voi
• Instavolt • Voltempo
• London Air • Window Seater
• London Electric Cars • Wrightbus
• Menzies Distribution • Zap Map
• Network Rail • Zedify
• Nomad Digital • ZeroAvia
• Octopus Electric Vehicles • Zero Emissions Maritime Technology
• Office of Rail and Road
• Phil Jones Associates
• Planet Platforms

Buildings Manufacturing
• ACA Architects • Agave Networks
• Anderson Green • Alexander Dennis
• Avanti Architects • Biohm
• Ben Cunliffe Architects • BP Pulse
• Bere:architect • Britishvolt
• Boss Controls • British Sugar
• Breedon Hope Cement Works • Gilbert Gilkes & Gordon
• Cemfree • High Value Manufacturing Catapult
• Cube Controls • IDEO
• Ethical British Timber • INEOS
• Greener Solutions Group • International Synergies
• Hanson • Kedel
• Kenoteq • Lignacite
• Low Carbon Materials • Modulek
• Metrikus • Pavegen
• Quimera Energy Efficiency • Xampla
• Sirus UK
• Switch2
• Tarmac
• Thurston Group
• Timber Development UK
• Timbersource
• UK Timber
• YLEM
• Wernick Group

220 Clean Growth Handbook Malaysia

Industry associations
Cross - sector Buildings
• British Chambers of Commerce • Better Buildings Partnership
• British Standards Institution • BuildUK
• Built Environment Carbon Database • Chartered Institution of Building
• Confederation of British Industry Services Engineers
• Federation of Environmental Trade Associations • Heat Network Industry Council
• Hydrogen UK • Informed Solutions
• Institute of Environmental Management & Assessment • Institution of Civil Engineers
• Sustainable Energy Association • Institution of Structural Engineers
• World Business Council for Sustainable • Low Energy Transformation Initiative
• Development • Royal Institute of British Architects
• Royal Institution of Chartered Surveyors
Power
• Construction Leadership Council
• British Hydropower Association • UK Green Building Council
• Energy Institute
• Heat Pump Association
• Renewable UK Manufacturing
• Solar Energy UK • British Electro Technical and Allied
• The Association for Decentralised Energy Manufacturers Association
• The Association for Renewable Energy & Clean • Chemical Industries Association
Technology • MAKEUK - The Manufacturers’
• Nuclear Industry Association • Organisation
• Offshore Energies UK • Manufacturing Technologies
• UK Hydrogen and Fuel Cell Association • Association
• SELECT: Scotland trade association for
Transport electrical and electronic businesses
• ChargeUK • Society of Motor Manufacturers and
• Chartered Institution of Highways and • Traders
• Transportation • The Packaging Federation
• Chartered Institute of Logistics and Transport • United Kingdom Petroleum Industry
• Confederation of Passenger Transport Association
• LOGISTICS UK
• National Skills Academy for Rail (NSAR)
• Rail Forum
• Rail Freight Group
• Rail Industry Association (RIA)
• Transport Planning Society
• Transport Association

Non-governmental organisations
Cross-sector Transport
• Action Vision Zero • Collaborative Mobility UK
• Brake • Community Rail Network
• CDP • Connected Places Catapult
• Chapter Zero • Foundation for Integrated Transport
• Climate Group • Sustrans
• Ellen MacArthur Foundation
• Environmental Defense Fund
Power
• Green Alliance
• Action Renewables
• Wrap
• Energy Systems Catapult
• Heat Trust
Buildings • National Nuclear Laboratory
• L&Q • Offshore Renewable Energy Catapult

Manufacturing
• High Value Manufacturing Catapult

Clean Growth Handbook Malaysia 221

 Academia and research institutions
Cross - sector Power
• Centre for Sustainable Solutions University of • Cambridge Zero University of Cambridge
Glasgow • Centre for Energy Policy University of Strathclyde
• Edinburgh Climate Change Institute-University of • Enverse
Edinburgh • Energy Demand Observatory and Laboratory
• Energy and Bioproducts Research Institute University College London and University of Oxford
• Institute of Environmental Management and • Green Fuels Research
Assessment • Net Zero Technology Centre
• National Nuclear Laboratory • Strathclyde University
• Net Zero Heriot Watt University • Supergen Bioenergy Hub
• Singular Intelligence • Solar Skills London Solar Energy UK
• The Grantham Research Institute on Climate • The Energy Saving Trust
Change and the Environment London School of
Economics and Political Science Buildings
• UK Committee for International Hydrology • Building Research Establishment
• The Exeter Centre for Circular Economy University • University of Nottingham’s Creative Energy
of Exeter Homes
• University of Reading’s Department of Meteorology • Open Systems Lab
• Zero Carbon Research Initiative University of • The Institution of Engineering and Technology
Liverpool
• Zero Institute University of Oxford Manufacturing
• Advanced Manufacturing Research Centre
University of Sheffield
Transport • Materials and Manufacturing Research Institute
• Brightwayz Swansea University
• Mobility Lab • Nuclear Advanced Manufacturing Research
• UK Collaboratorium for Research Centre

Financial institutions
Cross-sector Power
• Abrdn • Bluefield Partners
• Barclays • Downing
• Clean Growth Fund • Gresham House
• Circularity Capital • Gore Street Capital
• Equitix • Gore Street Energy Storage Fund
• Financial Conduct Authority • HydrogenOne Capital Growth
• Foresight Group • NextEnergy Capital
• Green Finance Institute • Susgen
• Green Investment Group • TLS Hydro Power
• HSBC Group
• Institutional Investors Group on Climate Change
• Lloyds Bank Transport
• Macquarie Green Investment Group • Volterra
• Metro Bank
• NatWest
• Paragon Bank
• Royal Bank of Scotland
• Standard Chartered
• Starling Bank
• UK Centre for Greening Finance and Investment
• The Co-operative Bank
• The Renewables Infrastructure Group
• Treecard
• Urgentem

222 Clean Growth Handbook Malaysia

Appendix

Selected clean growth

related tax incentives
from Malaysia's Revised
Budget 2023

Clean Growth Handbook Malaysia 223

 Selected clean growth related tax
incentives from Malaysia's Revised
Budget 2023
Topic Details from Budget

Sustainable and Responsible • Proposed tax deduction on the cost of issuing SRI-linked Sukuk that is
Investment Linked Sukuk approved or permitted or deposited with the Securities Commission Malaysia
from 2023 to 2027

• To provide an innovative Shariah compliant financing and place Malaysia as a

regional hub of SRI linked Sukuk issuance

Companies Renting Non • Proposed tax deduction for companies that rent non commercial EV
Commercial EV
• Rental amount up to RM300,000

Manufacturer of EV Charging • Income tax exemption of 100% on statutory income from the year of
Equipment assessment 2023 to the year of assessment 2032

• Investment Tax Allowance of 100% for a period of 5 years and can be set off
against up to 100% of the statutory income for each year of assessment

Carbon Capture and Storage Companies undertaking in house CCS activity

• Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure for a
period of 10 years. The allowance can be set off against up to 100% of business
statutory income;

• Full import duty and sales tax exemption on equipment used for CCS
technology commencing on 1 January 2023 until 31 December 2027; and c.

• Tax deduction for allowable pre commencement expenses within 5 years from
the date of commencement of operation.

Companies undertaking CCS services

• ITA of 100% of qualifying capital expenditure for a period of 10 years. The
allowance can be set off against up to 100% of statutory income; or

• Tax exemption of 70% on statutory income for a period of 10 years; and

• Full import duty and sales tax exemption on equipment used for CCS
technology starting 1 January 2023 until 31 December 2027.

Companies using CCS services be given tax deduction on fees incurred for use of
services.

Tax Incentives to Support the Incentive Period Extension

Development of Electric
Vehicle Industry Until 31/12/2025
• Full import duty and excise duty exemption on imported CBU EV

Until 31/12/2027
• Full import duty exemption on components for locally assembled EV

• Full import duty exemption on components for locally assembled EV

224 Clean Growth Handbook Malaysia

Abbreviations

Clean Growth Handbook Malaysia 225

 Abbreviation Meaning

11MP Eleventh Malaysia Plan 2016 2020

12MP Twelfth Malaysia Plan 2021 2025
2030 Agenda 2030 Agenda for Sustainable Development
4IR Fourth Industrial Revolution
APEAC Action for Energy Cooperation
APG Association of Southeast Asian Nations Power Grid
ASEAN Association of Southeast Asian Nations
BCX Bursa Carbon Exchange
BECCS Bioenergy Carbon Capture and Storage
BESS Battery Energy Storage System
BIM Building Information Modelling
BNM Bank Negara Malaysia
BRT Bus Rapid Transit
BSI British Standards Institution
CCC Climate Change Committee
CCS Carbon Capture and Storage
CCUS Carbon Capture, Usage and Storage
CfD Contracts for Difference
CGPP Corporate Green Power Programme
CIDB Construction Industry Development Board
COP Conference of Parties
DACCS Direct Air Capture with Carbon Storage
DBKL Dewan Bandaraya Kuala Lumpur (Kuala Lumpur City Hall)
DCS District Cooling System
DETS Domestic Emissions Trading Scheme
DOSM Department of Statistics Malaysia
DTN National Energy Policy 2022-2040
EACG Energy Audit Conditional Grant
EECA Energy Efficiency And Conservation Act
EEV Energy Efficient Vehicle
ECERDC East Coast Economic Region Development Council
ECRL East Coast Rail Line
EFB Empty Fruit Bunch
EIP Eco Industrial Park
EIR Emissions Intensity Ratio
EPR Extended Producer Responsibility
ESG Environmental, Social and Governance
EEV Energy Efficient Vehicles
ETS Electric Train System
EU European Union
EV Electric Vehicle
FMM Federation of Malaysian Manufacturer
FiT Feed in Tariff
GBP Pound Sterling
GBI Green Building Index
GDP Gross Domestic Product

226 Clean Growth Handbook Malaysia

 Abbreviation Meaning

GHG Greenhouse Gas

GreenRE Green Real Estate
GITA Green Income Tax Allowance
GITE Green Income Tax Exemption
GLCs Government Linked Companies
GTFS Green Technology Financing Scheme
GTMP Green Technology Master Plan
GVA Gross Value Added
HRDC Human Resources Development Corporation
IAEA International Atomic Energy Agency
IBS Industrialised Building Systems
IPPs Independent Power Producers
ICE Internal Combustion Engine
ITA Investment Tax Allowance
IRDA Iskandar Regional Development Authority
ISO International Organisation of Standardisation
JC3 Joint Committee on Climate Change
JETP Just Energy Transition Partnership
KTM Keretapi Tanah Melayu
kW kilowatt
kWh Kilowatt hour
l/s litres per second
LCEP Low Carbon Energy Programme
LCCF Low Carbon Cities Framework
LCMB Low Carbon Mobility Blueprint
LEED Leadership in Energy and Environmental
LSS Large Scale Solar
LT-LEDS Long Term Low Greenhouse Gas Emission Development Strategies
LULUCF Land Use, Land Use Change and Forestry
m metres
MaGIC Malaysian Global Innovation and Creativity Centre
MEPs Minimum Energy Performance Standards
METS Malaysia External Trade Statistics
MGTC Malaysia Green Technology and Climate Change Corporation
MLGD Ministry of Local Government Development
MOEc Ministry of Economy
MoF Ministry of Finance
MOU Memorandum of Understanding
MOSTI Ministry of Science, Technology and Innovation
MOT Ministry of Transport
MOW Ministry of Works
MNRECC Ministry of Natural Resources, Environment and Climate Change
MW megawatt
MWh megawatt hour
MIDA Malaysian Investment Development Authority
MITI Ministry of Investment, Trade and Industry

Clean Growth Handbook Malaysia 227

 Abbreviation Meaning

MRANTI Malaysian Research Accelerator for Technology and Innovation

MRL Malaysia Rail Link
MyCREST Malaysian Carbon Reduction and Environment Sustainability Tool
MyRER Malaysia Renewable Energy Roadmap
NAP National Automotive Policy
NEEAP National Energy Efficiency Action Plan
NEM Net Energy Metering
NPP National Physical Plan
NDC Nationally Determined Contribution
NLCCM National Low Carbon Cities Masterplan
NTP National Transport Policy
nZEB Nearly Zero Energy Building
NZEB Net Zero Energy Building
OGSE Oil and Gas, Services and Equipment
PEM Proton Exchange Membrane
PGC Penang Green Council
PPA Power Purchase Agreement
PV Photovoltaic
R&D Research and Development
REISO Resource Efficiency and Industrial Symbiosis Opportunity
Assessment
RM Malaysian Ringgit
RTS Rapid Transit System
SAF Sustainable Aviation Fuel
SEDA Sustainable Energy Development Authority
SEB Sarawak Energy
SESB Sabah Electricity
SDG Sustainable Development Goal
SIRIM Standard and Industrial Research Institute of Malaysia
SME Small and Medium Sized Enterprise
SMR Small Modular Reactor
SPV 2030 Shared Prosperity Vision 2030
SRI Sustainable and Responsible Investment
TfL Transport for London
TNB Tenaga Nasional
tonnes metric tonnes
TVET Technical and Vocational Education and Training
UK PACT UK Partnering for Accelerated Climate Transitions
UN United Nations
UNFCCC United Nations Framework Convention on Climate Change
UN SDGs United Nations Sustainable Development Goals
V2G Vehicle to Grid
VCM Voluntary Carbon Market
VNRs Voluntary National Reviews
ZEB Zero Energy Building
ZEB READY Ready to go Zero Energy Building

228 Clean Growth Handbook Malaysia

References

Clean Growth Handbook Malaysia 229

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27. theedgemarkets.com/node/658505
28. midf.com.my/sites/corporate/files/2021-12/12th-Malaysia-Plan-Technology-is-A-Key-Enabler-MIDF-280921.pdf
29. ekonomi.gov.my/sites/default/files/2022-09/National_Energy_Policy_2022-2040.pdf
30. epa.gov/statelocalenergy/local-renewable-energy-benefits-and-resources
31. unep.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-economy
32. oecd.org/greengrowth/whatisgreengrowthandhowcanithelpdeliversustainabledevelopment.htm#:~:text=Enhancing%20
productivity%20by%20creating%20incentives,to%20the%20highest%20value%20use.
33. arup.com/perspectives/publications/research/section/the-global-green-economy-capturing-the-opportunity
34. researchgate.net/figure/arious-components-of-a-green-economy_fig1_267074165
35. sciencedirect.com/science/article/pii/S0264837722003350
36. theedgemarkets.com/article/cover-story-rail-investments-question-if-fuel-subsidies-remain-they-are
37. dosm.gov.my/portal-main/release-content/population-projection-revised-malaysia-2010-2040
38. dosm.gov.my/portal-main/release-content/current-population-estimates-malaysia-2022
39. store.fitchsolutions.com/all-products/malaysia-autos-report
40. climatewatchdata.org/ghg-emissions?breakBy=sector&chartType=area&end_year=2019&regions=MYS&source=Climate
%20Watch&start_year=1990
41. pulse.icdm.com.my/wp-content/uploads/2021/09/Twelfth-Plan-Document_compressed-1.pdf
42. cnbc.com/2021/11/03/tsmc-samsung-and-intel-have-a-huge-carbon-footprint.html
43. reuters.com/business/energy/malaysia-needs-invest-375-bln-renewables-reach-2050-climate-goals-report-2023-03-09/
44. gov.uk/government/news/uk-malaysia-climate-ties-strengthened-with-new-climate-partnership
45. Department of Statistics Malaysia - dosm.gov.my/portal-main/home

Section 2
1. sciencedirect.com/science/article/pii/S0959378013000812
2. un.org/en/climatechange/paris-agreement
3. worldbank.org/en/news/feature/2022/05/17/what-you-need-to-know-about-article-6-of-the-paris-agreement
4. sdgs.un.org/2030agenda
5. jssm.umt.edu.my/wp-content/uploads/sites/51/2022/09/5-JSSM-Volume-17-Number-9-September-2022.pdf
6. europarl.europa.eu/RegData/etudes/IDAN/2022/702576/EXPO_IDA(2022)702576_EN.pdf
7. sei.org/projects-and-tools/projects/global-commission-on-the-economy-and-climate/
8. climateinitiativesplatform.org/index.php/Green_Growth_Partnership
9. g7germany.de/resource/blob/974430/2057926/2a7cd9f10213a481924492942dd660a1/2022-06-28-g7-climate-club-data.pdf
10. wto.org/english/tratop_e/envir_e/session_8_slides_for_wto_session_on_decarbonisation.pdf
11. cleanenergyministerial.org/who-we-are/
12. greenclimate.fund/about#key-features
13. financeministersforclimate.org/about-us
14. aseanbriefing.com/news/indonesias-just-energy-transition-partnership/
15. globalcovenantofmayors.org/who-we-are/
16. iclei.org/about_iclei_2/
17. c40.org/about-c40/
18. globalcarbonatlas.org/emissions/carbon-emissions/
19. asean.org/wp-content/uploads/2012/05/8.-March-2016-ASCC-Blueprint-2025.pdf

230 Clean Growth Handbook Malaysia

Section 2 continued
20. aseanenergy.org/the-7th-asean-energy-outlook/
21. adb.org/what-we-do/funds/asean-catalytic-green-finance-facility/overview
22. meti.go.jp/english/press/2023/0306_002.html
23. channelnewsasia.com/singapore/digital-green-economy-agreement-singapore-malaysia-anwar-visit-3240741
24. thestar.com.my/business/business-news/2023/01/30/malaysia-singapore-framework-on-cooperation-in-digital-economy-c
an-be-role-model-for-asean-countries-tengku-zafrul
25. asean.org/asean-finance-sectoral-bodies-release-asean-taxonomy-for-sustainable-finance-version-2/
26. gov.uk/government/publications/asean-uk-dialogue-partnership-plan-of-action-2022-to-2026/plan-of-action-to-implemen
t-the-asean-united-kingdom-dialogue-partnership-2022-to-2026
27. gov.uk/government/publications/asean-uk-dialogue-partnership-plan-of-action-2022-to-2026
28. aseanstats.org/wp-content/uploads/2022/12/ASEAN-Highlights-2022-02.pdf
29. asean.org/our-communities/economic-community/asean-energy-cooperation/priority-areas-of-cooperation/
30. iopscience.iop.org/article/10.1088/1755-1315/463/1/012055
31. mti.gov.sg/Newsroom/Parliamentary-Replies/2022/11/Written-reply-to-PQ-on-Update-on-Lao-PDR-Thailand-Malaysia-Sing
apore-Power-Integration-Project
32. bimp-eaga.asia/article/increased-investments-improved-connectivity-boost-bimp-eagas-recovery
33. unep.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-economy
34. oecd.org/governance/pcsd/toolkit/greengrowth/
35. researchgate.net/publication/293606009_Territorial_Potentials_for_a_Greener_Economy_GREECO_Final_Report_Version_2
8022014_Scientific_Report_Vol_26_Exploring_Territorial_Potentials_for_a_Greener_Economy
36. arup.com/perspectives/publications/research/section/the-global-green-economy-capturing-the-opportunity

Section 3
1. budget.mof.gov.my/en/budget2023/economy/
2. ekonomi.gov.my/sites/default/files/2020-02/Shared%20Prosperity%20Vision%202030.pdf
3. rmke12.epu.gov.my/en
4. ekonomi.gov.my/sites/default/files/2021-07/MALAYSIA-VNR-2021.pdf
5. ekonomi.gov.my/sites/default/files/2021-05/SDG_Roadmap_Phase_I_2016-2020.pdf
6. sustainabledevelopment.un.org/content/documents/15881Malaysia.pdf
7. pmo.gov.my/2019/07/national-policy-on-climate-change/
8. theedgemarkets.com/article/12mp-malaysia-committed-becoming-carbonneutral-nation-2050-says-pm
9. bernama.com/en/business/news.php?id=2127020
10. theedgemarkets.com/article/epu-table-midterm-review-12th-malaysia-plan-next-september
11. nst.com.my/news/nation/2022/09/828512/climate-change-law-expected-be-tabled-dewan-rakyat-early-next-year
12. zicolaw.com/wp-content/uploads/2021/12/ZICO_1010_Dec-2021_Malaysia%E2%80%99s-Climate-Change-Act-What-to-Ex
pect.pdf
13. gtalcc.gov.my/resources/national-low-carbon-cities-masterplan-nlccm/
14. ukpact.co.uk/pwc-malaysia-project-page
15. jica.go.jp/Resource/english/our_work/thematic_issues/management/jcci/dbil86000000oo4i-att/220119_01_01.pdf
16. sarawak.gov.my/media/attachments/PCDS_Compressed_22_July_2021.pdf
17. yumpu.com/en/document/read/61068183/ssp2033-english
18. sedia.com.my/news-resources/sdc-blueprint/
19. buletintv3.my/nasional/blueprint-rendah-carbon-iskandar-malaysia-2030-dilancarkan-pada-persidangan-cop27-di-mesir/
20. dbkl.gov.my/wp-content/uploads/2021/07/C40_KLCAP2050_viewing-only-MR-single_compressed.pdf
21. mbsp.gov.my/docmajlis/bandar-rendah-karbon/cas.pdf
22. esci-ksp.org/wp/wp-content/uploads/gravity_forms/2-78aae73684240255535d280ca98acba9/2018/11/green-city-action-
plan-melaka-2014.pdf
23. bimp-eaga.asia/sites/default/files/publications/Green%20City%20Action%20Plan_CS6_3rd_web.pdf
24. adb.org/projects/55224-001/main
25. theedgemarkets.com/article/growing-champions-malaysias-renewable-energy-opportunity
26. budget.mof.gov.my/pdf/belanjawan2023/ucapan/ub23-BI.pdf
27. digitalnewsasia.com/sustainability-matters/malaysia-budget-2023-missing-forest-trees-when-it-comes-sustainability
28. theedgemarkets.com/article/tnb-invest-rm20b-over-28-years-support-countrys-netzero-plan
29. theedgemarkets.com/node/658934
30. nst.com.my/news/nation/2023/03/885065/green-projects-worth-rm49bil-approved-will-create-1500-jobs-tengku-zafrul

Clean Growth Handbook Malaysia 231

 Section 4
1. theccc.org.uk/about/our-expertise/advice-on-reducing-the-uks-emissions/
2. gov.uk/government/news/uk-sets-ambitious-new-climate-target-ahead-of-un-summit
3. gov.uk/government/collections/net-zero-innovation-portfolio
4. assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/700496/clean-growth-str
ategy-correction-april-2018.pdf
5. ukcop26.org/wp-content/uploads/2021/11/COP26-Presidency-Outcomes-The-Climate-Pact.pdf
6. gov.uk/government/news/uk-announces-major-new-package-of-climate-support-at-cop27
7. gov.uk/government/news/climate-finance-to-flow-to-kenya-as-uk-prime-minister-agrees-with-president-ruto-to-fast-tra
ck-kes-500-billion-of-british-investment
8. ukpact.co.uk/about
9. gov.uk/government/news/uk-pact-backs-low-carbon-transition-in-malaysia-with-14-million-in-support
10. adb.org/news/134-million-uk-fund-help-catalyze-green-financing-southeast-asia
11. gov.uk/government/news/joint-statement-south-africa-just-energy-transition-investment-plan
12. gov.uk/government/news/indonesia-just-energy-transition-partnership-launched-at-g20
13. gov.uk/government/publications/vietnams-just-energy-transition-partnership-political-declaration/political-declaration
-on-establishing-the-just-energy-transition-partnership-with-viet-nam

Section 5
1. ekonomi.gov.my/sites/default/files/2022-09/National_Energy_Policy_2022-2040.pdf
2. ourworldindata.org/energy/country/malaysia
3. seda.gov.my/reportal/wp-content/uploads/2021/12/MyRER_webVer-1.pdf
4. seda.gov.my/reportal/wp-content/uploads/2022/03/MyRER_webVer3.pdf
5. st.gov.my/ms/contents/files/download/169/
Report_on_Peninsular_Malaysia_Generation_Development_Plan_2020_(2021-2039)-FINAL1.pdf
6. pmo.gov.my/wp-content/uploads/2019/07/National-Energy-Efficiency-Action-Plan.pdf
7. pmo.gov.my/wp-content/uploads/2019/07/Green-Technology-Master-Plan-Malaysia-2017-2030.pdf
8. nst.com.my/news/nation/2023/03/884659/eeca-bill-research-stage-nik-nazmi
9. malaymail.com/news/malaysia/2021/11/30/bill-on-energy-efficiency-and-conservation-to-be-tabled-next-year-says-mini/20
24821
10. freemalaysiatoday.com/category/business/2023/03/06/energy-transition-roadmap-to-be-presented-in-3-months-says-
11. nrecc.gov.my/en-my/AboutKetsa/Pages/default.aspx
12. seda.gov.my/about-seda/overview-of-seda/
13. nst.com.my/news/nation/2022/08/825667/sabah-set-own-energy-commission-acquire-sesb
14. tnb.com.my/assets/annual_report/TNB_Sustainability_Report_2021.pdf
15. st.gov.my/images/highlight/FactSheet.pdf
16. sesb.com.my/About-Us/History/Corporate-Profile#:~:text=Corporate%20Profile%20Sabah%20Electricity%20Sdn.%20Bhd%
20established%20in,of%20Sabah%20and%20the%20Federal%20Territory%20of%20Labuan.
17. dailyexpress.com.my/news/130574/sabah-sesb-ownership-in-2-years/
18. nst.com.my/news/nation/2022/08/825667/sabah-set-own-energy-commission-acquire-sesb
19. sarawakenergy.com/investors/annual-and-sustainability-reports
20. sarawakenergy.com/what-we-do/power-generation
21. gso.org.my/Home/Industry.aspx
22. petronas.com/integrated-report-2021/
23. budget.mof.gov.my/pdf/2022/ucapan/bs22.pdf
24. st.gov.my/ms/contents/files/download/169/
Report_on_Peninsular_Malaysia_Generation_Development_Plan_2020_(2021-2039)-FINAL1.pdf
25. seforall.org/press-releases/governments-launch-unprecedented-initiative-to-end-new-coal-power
26. spglobal.com/commodityinsights/en/ci/research-analysis/malaysias-new-energy-transition-plan-lower-renewable-capacity.
html
27. mida.gov.my/mida-news/natural-gas-to-fuel-exports-this-month/
28. businesstoday.com.my/2022/12/13/malaysia-must-redistribute-bulk-subsidies-towards-supporting-b40-m40-small-traders-an
war/
29. theedgemarkets.com/node/648527
30. freemalaysiatoday.com/category/nation/2022/12/16/govt-to-spend-rm10bil-to-subsidise-electricity-tariffs/
31. theedgemarkets.com/article/govt-liberalise-power-industry
32. seda.gov.my/reportal/wp-content/uploads/2021/12/MyRER_webVer-1.pdf
33. st.gov.my/en/web/industry/details/2/17
34. nst.com.my/news/nation/2023/02/880039/tnb-sets-eyes-floating-solar-future-growth-renewable-energy%C2%A0
35. trinasolar.com/en-glb/resources/newsroom/entrina-solar-secures-50-mw-floating-solar-photovoltaic-fpv-project-Sarawak
36. theedgemarkets.com/content/advertise/shell-malaysia-forges-partnerships-expedite-energy-transition
37. theborneopost.com/2022/10/01/abg-jo-swak-can-be-first-in-region-to-harness-wind-energy/
38. mida.gov.my/mida-news/powering-up-the-solar-industry/
39. worldstopexports.com/best-solar-wind-exporters-powering-international-energy-sales/
40. iea-pvps.org/wp-content/uploads/2020/08/NSR_Malaysia_2019.pdf
41. volza.com/p/solar-panel/export/export-from-malaysia/
42. globalcompliancenews.com/2022/12/15/https-insightplus-bakermckenzie-com-bm-energy-mining-infrastructure_1-malaysia-
a-guide-to-corporate-green-power-programme-for-corporate-consumers_12122022/
43. theedgemarkets.com/node/659117

232 Clean Growth Handbook Malaysia

Section 5 continued
44. reuters.com/markets/commodities/why-malaysia-is-considering-ban-palm-oil-exports-european-union-2023-01-13/
45. sciencedirect.com/science/article/abs/pii/S1364032117307323
46. theedgemarkets.com/node/654048
47. majunaka.com.my/
48. myhijau.my/blog/2020/07/29/bio-eneco-sdn-bhd/
49. theedgemarkets.com/node/654048
50. researchgate.net/figure/Land use amount of biomass by districts and least cost locations in
PeninsularMalaysia_fig2_343579493
51. Foreign, Commonwealth & Development Office and Ernst & Young LLP (2021). Malaysia Renewable Energy Business
Opportunities.
52. sarawakenergy.com/what-we-do/power-generation
53. freemalaysiatoday.com/category/nation/2022/07/22/small hydro plants better than dams says green energy activist/
54. theedgemalaysia.com/article/m%E2%80%99sia-get-first-low-head-mini-hydropower-project
55. waterpowermagazine.com/features/featureharnessing hydropower in malaysia 8396270/
56. hydrogenexpo.com/media/9370/the_future_of_hydrogen_iea.pdf
57. mida.gov.my/hydrogen-as-an-attractive-new-energy-source-carrier/
58. mida.gov.my/mida-news/govt-still-in-midst-of-formulating-national-hydrogen-strategy-says-miti-deputy-minister/
59. petronas.com/media/media-releases/petronas-registers-robust-nine-months-performance-advances-actions-net-zero
60. malakoff.com.my/new/malakoff signs mou with itochu on decarbonisation initiatives
61. theedgemarkets.com/article/my-say-sarawaks-green-hydrogen-plans-will-take-some-doing
62. cambridge.org/core/journals/mrs-energy-and-sustainability/article/abs/hydrogen-technologies-for-energy-storage-a-
perspective/D308E44E8EB8BF7215ADE1621AE5DDE6
63. mc-cd8320d4-36a1-40ac-83cc-3389-cdn-endpoint.azureedge.net/-/media/Files/IRENA/Agency/Publication/2023/Mar/IRENA
_Malaysia_energy_transition_outlook_2023.pdf?rev=b95f3ef90d3847bfb552f02bdde21529
64. gso.org.my/News/News.aspx?ID=61
65. ditrolicenergy.com/en-us/media/blog/innovation/november-2022/battery-energy-storage-system
66. linkedin.com/posts/dato-indera-dr-ahmad-sabirin-arshad-514504189_sirim-ionventuresenergy-activity-7008341020471963648-
UT28/?originalSubdomain=mv
67. theedgemarkets.com/node/660780
68. irena.org/-/media/Files/IRENA/Agency/Publication/2019/Sep/IRENA_Utility-scale-batteries_2019.pdf
69. nst.com.my/business/2020/01/559081/sesb-embarking-digital-transformation-journey-become-world-class-utility
70. spgroup.com.sg/sp-powergrid/overview/smart-grid-index
71. sgtecheng.nu.ac.th/wp-content/uploads/2019/12/Paper-6-IrQaharuddin-MIGHT.pdf
72. christopherleeong.com/media/4007/clo_lss4.pdf
73. insightplus.bakermckenzie.com/bm/projects/malaysia-competitive-bidding-for-the-development-of-large-scale-solar-photovo
ltaic-plants-under-lssmentari-programme
74. mida.gov.my/wp-content/uploads/2020/12/BOOKLET-16-ENGINEERING-2020-11-19.pdf

Section 6
1. malaysia.gov.my/portal/content/30900
2. ekonomi.gov.my/sites/default/files/2022-09/National_Energy_Policy_2022-2040.pdf
3. mgtc.gov.my/wp-content/uploads/2021/11/Low-Carbon-Mobility-Blueprint-2021-2030.pdf
4. gov.uk/government/statistics/transport-and-environment-statistics-2022/transport-and-environment-statistics-2022
5. freemalaysiatoday.com/category/nation/2022/07/09/overlapping-ministries-agencies-affecting-transport-planning-sa
ys-expert/
6. reigroup.com.my/wp-content/uploads/pdf/2015/march/MBPJ_GKLKV_Nov2013_SPAD.pdf
7. mot.gov.my/en/about/organization-structure
8. core.ac.uk/download/pdf/110588613.pdf
9. theedgemarkets.com/article/special-report-rm777-bil-subsidies-exceed-budgeted-development-expenditure-2022
10. mida.gov.my/malaysia-auto-industry-tapping-on-new-areas-of-opportunities/
11. dosm.gov.my/portal-main/release-content/a18f3c19-8ba9-11ed-96a6-1866daa77ef9
12. sciencedirect.com/science/article/pii/S1877042814055311?ref=pdf_download&fr=RR-2&rr=7a7136c859cd6c65
13. freemalaysiatoday.com/category/opinion/2022/11/11/concrete-thorough-solutions-needed-to-solve-public-transport-pro
blems/
14. climatebonds.net/files/reports/cbi_giio_malaysia_20_03_bbd.pdf
15. theedgemarkets.com/article/special-report-rm777-bil-subsidies-exceed-budgeted-development-expenditure-2022
16. mot.gov.my/en/Statistik%20Tahunan%20Pengangkutan/Transport%20Statistics%20Malaysia%202021.pdf
17. penanginstitute.org/wp-content/uploads/jml/files/research_papers/What is the future for
KTM_OKM_Atticus_12March2018_FINAL_UpdatedQ42017.pdf
18. thestar.com.my/news/nation/2022/11/16/gemas-jb-ets-almost-ready-to-run
19. mrl.com.my/en/ecrl/
20. mymrt.com.my/projects/rts-link/
21. channelnewsasia.com/commentary/commentary-johor-singapore-tolls-and-impact-commuters-both-sides-causeway-9
87841
22. ktmb.com.my/Intercity.html
23. thestar.com.my/news/nation/2022/03/28/no-plans-so-far-to-do-feasibility-study-on-sarawak-sabah-kalimantan-rail-
network-says-wee#:~:text=KUALA%20LUMPUR%3A%20The%20Transport%20Ministry%20has%20no%
20plans,Kalimantan%2C%20said%20Datuk%20Seri%20Dr%20Wee%20Ka%20Siong.
24. wapcar.my/news/railwaymen-union-ktm-delays-40-minute-intervals-due-to-11-trains-not-in-service-50592
25. intranet4.ktmb.com.my/ktmb/uploads/files/train schedule/Commuter_Schedule_Archive/2022/TM-PK-TM-2022_Isnin
Jumaat_15Jun2022.pdf
26. paultan.org/2016/05/26/ktm-komuter-intervals-to-be-halved-by-2019-but-upgrading-work-will-cause-four-years-of-long
er-waits/

Clean Growth Handbook Malaysia 233

 Section 6 continued
27. theedgemarkets.com/article/penang-gets-conditional-nod-transport-ministry-bayan-lepas-lrt-project
28. malaymail.com/news/malaysia/2022/12/31/on-eve-of-2023-penang-cm-says-will-push-putrajaya-for-lrt-and-pan-island-link-
projects/47824
29. intelligenttransport.com/transport-content-hubs/138840/sarawak-metro-sdn-bhd
30. malaymail.com/news/malaysia/2022/12/16/sarawak-premier-says-autonomous-rapid-transit-to-start-service-in-q4-2025 /45565
31. kuchingborneo.info/worlds-1st-hydrogen-powered-art-to-begin-construction-in-kuching-this-sept/
32. mot.gov.my/en/Statistik%20Tahunan%20Pengangkutan/Transport%20Statistics%20Malaysia%202021.pdf
33. networkrail.co.uk/who-we-are/
34. networkrailconsulting.com/our-capabilities/network-rail-projects/atc-system-integration-services-2/
35. networkrailconsulting.com/our-capabilities/network-rail-projects/california-hsr/
36. networkrailconsulting.com/our-capabilities/network-rail-projects/metrolinx-access-planning-and-management-support
37. expressbusmalaysia.com/
38. mgtc.gov.my/2022/08/malaysia-to-begin-using-evs-for-its-government-fleet-procurement-to-begin-from-2023-tuan-ibr ahim
39. sunwayconstruction.com.my/projects/bus-rapid-transit-brt-sunway-line/
40. wapcar.my/news/rapid-kl-begins-trial-of-4-byd-ev-buses-to-replace-dirty-diesels-4413313
41. paultan.org/2023/03/10/rapid-bus-to-begin-its-bus-electrification-programme-100-ev-buses-in-phase-one-481-units-in-phase-two/
42. paultan.org/2021/10/28/gokl-city-bus-fully-electric-by-early-2023-using-60-malaysian-made-sks-ev-buses/
43. dayakdaily.com/sarawak-launches-first-in-malaysia-e-bus/
44. lowyat.net/2022/268512/singgah-singgah-melaka-electric-bus/
45. thesundaily.my/local/melaka-to-introduce-electric-powered-buses-for-tourists-next-year-DM5592137
46. kuchingmetro.my/
47. nst.com.my/news/nation/2022/06/807902/sabah-begins-trial-run-states-first-electric-bus-service
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49. sarawakenergy.com/media-info/media-releases/2019/sarawak-launches-south-east-asias-first-integrated-hydrogen-pro duction-
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51. Arup and Prasarana (2022). Spatial Accessibility Analysis for Rapid KL's Bus Network in Klang Valley
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54. auto.economictimes.indiatimes.com/news/commercial-vehicle/mhcv/switch-mobility-plans-new-plant-in-india-more-pr oducts-for-
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55. switchmobilityev.com/en/news/switch-mobility-partners-jsw-introduce-electric-buses-employee-transportation?nid=279
56. switchmobilityev.com/en/news/switch-mobility-ltd-delivers-first-set-switch-eiv-22-indias-first-electric-double-decker-
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#:~:text=Cycling%20locally%20%E2%80%98still%20too%20dangerous%E2%80%99%20for%2052%25%20of,ETX%20Daily%20Up
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59. theedgemalaysia.com/article/cover-story-ticket-ride
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62. paultan.org/2022/07/27/running-an-ev-in-malaysia-is-between-11-4-to-28-3-cheaper-than-petrol-vehicles-using-ron-95-t nb/
63. thesundaily.my/local/10000-ev-charging-points-installation-on-track-700-ready-IF10154286
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70. businesstoday.com.my/2022/11/09/installation-of-10000-ev-charging-points-on-track-with-700-ready/
71. theedgemarkets.com/node/655155
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75. statista.com/outlook/mmo/electric-vehicles/malaysia#unit-sales
76. Arup (2022). Electric Vehicle Ecosystem Investigation
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79. nst.com.my/business/2022/12/856679/chinas-eve-energy-build-us4223mil-battery-plant-malaysia
80. theedgemarkets.com/node/655914#:~:text=MITI%20is%20responsible%20for%20transforming,the%20National%20Aut omotive%
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81. mida.gov.my/mida-news/govt-offers-incentives-for-electric-vehicles-azmin/
82. paultan.org/2023/02/24/budget-2023-cbu-evs-in-malaysia-now-tax-free-until-end-2025-ckd-exemption-until-december-31-2027/

234 Clean Growth Handbook Malaysia

Section 6 continued
83. aseanbriefing.com/news/tax-incentives-under-malaysias-budget-2023/
84. mida.gov.my/media-release/volvo-car-malaysia-announced-to-produce-its-first-assembled-electric-vehicle-ev-in-malaysia
85. forbes.com/sites/ralphjennings/2022/07/27/center-of-the-global-battery-industry-samsung-builds-13-billion-ev-battery-pl ant-in-
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86. channelnewsasia.com/business/tesla-open-malaysia-office-3314291
87. octopus.energy/about-us/
88. octopusev.com/about-us
89. fleetnews.co.uk/news/latest-fleet-news/electric-fleet-news/2022/06/23/hundreds-of-businesses-sign-up-to-ev-salary-sacr ifice-
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90. fleetnews.co.uk/news/latest-fleet-news/electric-fleet-news/2021/07/28/sureserve-group-uses-octopus-energy-to-charge-electric-
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93. iea.org/policies/5791-national-biofuel-policy-of-malaysia-nbp-2006
94. theedgemarkets.com/node/658342
95. reuters.com/article/britain-malaysia-palm-oil-idINFWN35M1HR
96. link.springer.com/article/10.1007/s12155-020-10165-0/figures/3
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neste
99. malaysiaairlines.com/my/ms/news-article/2022/malaysia-airlines-flies-first-passenger-flight-with-neste-my-sustainable-a viation-
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100. thestar.com.my/news/nation/2022/07/26/msia-china-jv-to-produce-hydrotreated-vegetable-oil-sustainable-aviation-fuel
101. argusmedia.com/en/news/2311784-more-plans-under-way-for-malaysian-hvosaf-plant
102. thestar.com.my/business/business-news/2022/12/14/petronas-eni-euglena-studying-possibility-of-setting-up-biorefinery-in -
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103. theguardian.com/environment/2022/oct/07/un-body-reaches-long-term-aviation-climate-goal-of-net-zero-by-2050
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105. bayoufuels.com/about/
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107. altalto.com/about/
108. velocys.com/who-we-work-for/
109. velocys.com/projects/e-fuels-2/
110. mida.gov.my/malaysia-well-positioned-as-a-regional-logistics-hub-and-gateway-to-asean/
111. giiresearch.com/report/moi1200986-malaysia-freight-logistics-market-growth-trends.html
112. theedgemarkets.com/article/ijm-form-jv-company-chec-mixed-development-and-logistics-hub-kuantan
113. lpi.worldbank.org/international/global
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118. themalaysianreserve.com/2022/03/02/port-klang-and-ptp-to-increase-containership-capacity/
119. seatrade-maritime.com/asia/malaysia-upgrading-sabah-ports-drive-growth
120. ptp.com.my/PTP/media/File/green-port-policy-EN.pdf
121. sustainableworldports.org/project/johor-port-authority-ship-emission-management-system-sems/ edge.worl
122. westportsholdings.com/2021/02/10/port-klang-awarded-apsn-green-port-2020/
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124. theedgemarkets.com/article/carveout-klia-aeropolis-99year-leasehold-status-major-needle-mover-mahb-analysts-say https://
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126. kkd.gov.my/en/public/news/20973-sabah-air-pos-malaysia-join-hands-for-state-s-first-cargo-terminal
127. jkr.gov.my/sites/default/files/upload/Statistik%20Jalan%20Malaysia%20Edisi%202021.pdf
128. mida.gov.my/mida-news/the-future-of-malaysias-rail-industry/
129. theedgemarkets.com/article/ntp-2019-optimising-full-potential-rail-connectivity
130. jkr.gov.my/sites/default/files/upload/Statistik%20Jalan%20Malaysia%20Edisi%202021.pdf
131. paultan.org/2022/05/24/govt-approves-three-highway-projects-in-klang-valley-pjd-link-putrajaya-bangi-expressway-and-kl-node/
132. carsome.my/news/item/malaysia-central-spine-road
133. theedgemarkets.com/article/ntp-2019-optimising-full-potential-rail-connectivity
134. freemalaysiatoday.com/category/opinion/2021/04/06/getting-the-figures-right-on-ecrl-ktmb/
135. rmke12.epu.gov.my/en
136. kuantanport.com.my/en_GB/about-us/corporate-profile/
137. maritimefairtrade.org/kuantan-port-embarks-green-journey-unlock-commercial-potential/
138. unctad.org/news/decarbonizing-maritime-sector-mobilizing-coordinated-action-industry-using-ecosystems-approach
139. unitrove.com/media/press-release/2021/11/05/unitrove-unveils-world's-first-liquid-hydrogen-bunkering-
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140. logisticsmanager.com/hydrogen-powered-shipping-project-awarded-nearly-4-million-in-uk-government-funding/
141. unitrove.com/media/press-release/2022/10/05/uk-government-funds-consortium-led-by-unitrove
142. trade.gov/country-commercial-guides/malaysia-market-entry-strategy
143. miti.gov.my/index.php/pages/view/3796
144. jpj.gov.my/en/web/main-site/kejuruteraan-automotif-en/-/knowledge_base/vta/vta-guidelines

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235
 Section 7
1. jkt.kpkt.gov.my/en/uniform-building-law-1984-ubbl-1984-amendments-which-gazzetted-according-state-authority
2. pmo.gov.my/wp-content/uploads/2019/07/Green-Technology-Master-Plan-Malaysia-2017-2030.pdf
3. mgbc.org.my/history/
4. st.gov.my/en/details/aboutus/9
5. themalaysianreserve.com/2021/12/01/merdeka-118-tower-a-new-economic-catalyst/
6. /journal.utem.edu.my/index.php/jmet/article/view/3220
7. gtfs.my/page/criteria-building-and-township-sector
8. gnpgroup.com.my/service/gp-me/
9. ssrv.com.my/services/
10. thestar.com.my/business/business-news/2023/03/30/sunway-reit-in-green-building-commitment
11. seda.gov.my/energy-demand-management-edm/zeb-renovation-for-existing-buildings/
12. theedgemarkets.com/article/buildings-getting-net-positive-energy
13. c40cff.org/news-and-events/cff-city-portfolio
14. seda.gov.my/energy-demand-management-edm/energy-audit-conditional-grant-commercial-building/
15. apec.org/docs/default-source/satellite/egeec/files/60/Economy_Updates_Malaysia.pdf
16. mida.gov.my/mida-news/sustainability-powering-smart-buildings-with-iot/
17. monash.edu.my/pages/latest/articles/2019/we-are-doing-our-part
18. esci-ksp.org/wp/wp-content/uploads/2016/12/22.FP_Zero_Energy_FINAL.pdf
19. ien.com.my/projects/geo-building-%28greentech%29
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21. inhabitat.com/malaysias-green-diamond-building-wins-southeast-asia-energy-prize/diamond-building-malaysia-putraja
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22. inhabitat.com/malaysias-green-diamond-building-wins-southeast-asia-energy-prize/
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28. thestar.com.my/news/nation/2023/01/04/dbkl-introduces-climate-fund-to-invest-in-green-tech
29. megajana.com.my/megajana/district-cooling/
30. irda.com.my/about-us/
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32. gamuda-get.com/techtalks-6-green-concrete-for-a-sustainable-future/
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35. theedgemarkets.com/article/ibs-be-fully-adopted-upskilling-workers-crucial
36. edgeprop.my/content/mandatory-achieve-ibs-score-70-construction-industry-says-najib
37. gamuda.com.my/2019/03/gamuda-ibs-replicates-its-successful-rsku-projects/news/
38. theedgemarkets.com/article/s-p-setia-use-ibs-landed-residential-projects-0
39. gamuda.com.my/2020/11/gamuda-ibs-and-crest-builder-to-explore-collaboration-opportunities/news/
40. mgtc.gov.my/wp-content/uploads/2022/07/REC-GTGT-007-GUIDELINES-FOR-GREEN-TECHNOLOGY-TAX-INCENTIVE-
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41. mida.gov.my/wp-content/uploads/2020/12/BOOKLET-16-ENGINEERING-2020-11-19.pdf

Section 8
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ptions_of_The_Companies_on_Environmental_Efficiency_and_Sustainability
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20v2.0.pdf
22. mida.gov.my/setting-up-content/infrastructure-support/

236 Clean Growth Handbook Malaysia

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23. researchgate.net/publication/338860170_Towards_Eco-Industrial_Park_in_Malaysia_Promising_Opportunities_Challenges_a
nd_Regulator_Roles
24. theedgemarkets.com/node/658505
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28. mgtc.gov.my/2019/10/promoting-sustainable-energy-management/
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32. insightplus.bakermckenzie.com/bm/energy-mining-infrastructure_1/international-malaysian-national-energy-https://
33. myhijau.my/blog/2020/03/19/innovative-solutions-to-air-and-gas-compression/
34. tuv.com/market-access-services/en/certification-filter/malaysia-minimum-energy-performance-standard-(meps).html
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37. sseenergysolutions.co.uk/news-and-insights/case-studies/remote-commissioning-of-a-new-bems-using-a-virtual-presence
38. sseenergysolutions.co.uk/news-and-insights/case-studies/ideas-at-work
39. sseenergysolutions.co.uk/news-and-insights/case-studies/newcastle-university-cuts-admin-and-saves-money
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74. anthesisgroup.com/anthesis-group-supports-circular-alternatives-to-stretch-wrap-report/
75. petronas.com/media/media-releases/petronas-carigali-reaches-final-investment-decision-kasawari-ccs-project
76. upstreamonline.com/field-development/malaysia-revs-up-carbon-capture-and-storage-developments/2-1-1159919 offshore-
77. technology.com/projects/kasawari-gas-development-project-sarawak/
78. pttep.com/en/Newsandnmedia/News/
Pttepconfirmsitslargestevergasdiscoverywithlanglebah2appraisalwelloffshoremalaysia.aspx
79. storegga.earth/news/2022/press-releases/petronas-and-storegga-join-forces-on-ccs
80. oedigital.com/news/502489-petronas-and-exxonmobil-to-pursue-ccs-projects-in-malaysia
81. iopscience.iop.org/article/10.1088/1755-1315/971/1/012022/pdf
82. thestar.com.my/business/business-news/2022/12/05/joint-development--------------------on-carbon-storage#:~:text=%E2%
80%9CSarawak%2C%20because%20of%20its%20stable%20geological%20formations%2C%20has,capacity%20in%
20the%20seabed%20of%20its%20continental%20shelf.
83. asia.nikkei.com/Spotlight/Environment/Climate-Change/Mitsui-and-Petronas-to-explore-carbon-storage-off-Malaysian-co
ast
84. petronas.com/media/media-releases/petronas-signs-mou-six-south-korean-companies-explore-opportunities-ccs-value
85. argusmedia.com/en/news/2420404-japans-inpex-malaysias-petros-agree-sarawak-ccs-deal
86. realiseccus.eu/ccus-and-refineries/industrial-clusters
87. iea.org/reports/carbon-capture-utilisation-and-storage-the-opportunity-in-southeast-asia/executive-summary
88. hanson.co.uk/en/committed-to-reaching-net-zero-carbon

Clean Growth Handbook Malaysia 237

 Section 8 continued
89. heidelbergmaterials.com/en/malaysia
90. hanson.my/en/about-us
91. hanson.co.uk/en/case-study/low-carbon-asphalt-trial-on-A414
92. hanson.co.uk/en/case-study/trial-of-additives-derived-from-waste-plastic-in-highways-surfacing-penrith-and-nenthead
-cumbria
93. hanson.co.uk/en/case-study/largest-cemfree-concrete-pour-in-europe
94. hanson.co.uk/en/case-study/reducing-carbon-emissions-and-improving-efficiencies-national-highways-areas-6-and-8-
case-study
95. hanson.co.uk/en/case-study/low-carbon-concrete-used-for-dawlish-sea-defences
96. heidelbergmaterials.com/en/pr-20-10-2021
97. mida.gov.my/wp-content/uploads/2023/01/2023-01-06-MIDA_Policy-Booklet_-English-Version.pdf

Section 9
1. nst.com.my/business/2023/03/886404/malaysias-energy-transition-blueprint-be-finalised-three-months-says-rafizi
2. malaymail.com/news/what-you-think/2022/12/07/the-right-environment-ministry-structure-a-big-step-toward-holistic-env
ironmental-governance-yeo-bee-yin/43961
3. rmke12.epu.gov.my/en
4. gtalcc.gov.my/resources/national-low-carbon-cities-masterplan-nlccm/
5. thestar.com.my/news/nation/2023/04/04/parliament-names-members-of-10-special-select-committees
6. mondaq.com/waste-management/1222376/the-laws-relating-to-zero-emissions-in-Malaysia
7. jsm.gov.my/faqs
8. policy.asiapacificenergy.org/sites/default/files/Code%20of%20Practice%20on%20Energy%20Efficiency%20and%20Use
%20of%20Renewable%20Energy%20for%20Residential%20Buildings.pdf
9. mysol.jsm.gov.my/getPdfFile/eyJpdiI6ImJwYjNXelI0eFF4ckMxanNQNHhic0E9PSIsInZhbHVlIjoia1VtVVMzZGROa1NmZTFCM
UJuZFpwdz09IiwibWFjIjoiY2YzNmQ1OTNlYzZlN2RiOGE5NjkyYTQzOTk5OTU1YTA0M2ZiOWY3NWUxN2Q4YzQzNDM4NWEw
Yzk3MGQ1NmJiZiJ9
10. cream.my/manual-guidelines
11. doe.gov.my/wp-content/uploads/2021/10/GUIDELINE-FOR-THE-INSTALLATION-MAINTENANCE-OF-CEMS-FOR-INDUSTRI
AL-PREMISES-OR-FACILITIES-VERSION-7.0-JUNE-2019.pdf
12. seda.gov.my/reportal/wp-content/uploads/2022/03/MyRER_webVer3.pdf
13. st.gov.my/en/contents/files/download/142/GUIDE_ON_ELECTRIC_VEHICLE_CHARGING_SYSTEM_(EVCS)1.pdf?fs=e&s=cl
14. st.gov.my/ms/contents/presentations/Seminar_EE_2015/01.%20POLICY%20AND%20EE%20REGULATION-Pn%20Hafiza%
20Yob.pdf
15. gov.uk/government/news/rigorous-new-targets-for-green-building-revolution
16. bsigroup.com/en-GB/standards/pas-2080/
17. nzcbuildings.co.uk/
18. bsigroup.com/en-SG/About-BSI/#:~:text=At%20BSI%2C%20our%20mission%20is,through%20our%20prestigious%20Roy
a%20Charter.
19. bsigroup.com/en-SG/About-BSI/Our-history/
20. bsigroup.com/globalassets/localfiles/en-sg/ISO%2014064%20SG/bsi_green-house_gases_portfolio-sg.pdf
21. bsigroup.com/en-GB/our-services/knowledge-services/key-sectors/sustainability/pas-4444-hydrogen-case-study/
22. bsigroup.com/globalassets/localfiles/en-th/carbon-footprint/my-green-house-gases-portfolio-enmy-web-6oct22-th.pdf
23. thesundaily.my/local/nacsa-bsi-sign-mou-on-standards-adoption-certification-for-information-resilience-LF8016269
24. bsigroup.com/LocalFiles/en-SG/ISO%2050001%20SG/BSI-KMERV-case-study-Sony-Group%20SG.pdf
25. bsigroup.com/globalassets/localfiles/en-gb/Committee%20documents/International-Projects-Case-Study-India.pdf
26. open.dosm.gov.my/data-catalogue
27. statsdw.dosm.gov.my/#:~:text=Statistics%20Data%20Warehouse%20(StatsDW)%20is,compiled%20data%20for%20econ
omic%20indicators
28. businesstoday.com.my/2022/11/09/installation-of-10000-ev-charging-points-on-track-with-700-ready/
29. wapcar.my/news/shell-malaysia-commits-to-ev-charging-buys-50-stake-in-parkeasy-48078
30. thestar.com.my/business/business-news/2022/10/13/petronas-clean-energy-unit-to-partner-proton-in-ev-market-develop
ment#:~:text=%22Initial%20plans%20are%20for%20the,operatorship%20solutions%2C%22%20it%20added
31. malaysiakini.com/announcement/643678
32. myrapid.com.my/pulse/mobile-app/
33. seda.gov.my/bedos/about
34. gov.uk/government/publications/uk-electric-vehicle-infrastructure-strategy
35. seda.gov.my/reportal/fit/#:~:text=Malaysia's%20Feed%2Din%20Tariff%20(FiT,grid%20for%20a%20specific%20duration
36. theedgemarkets.com/article/lss4-projects-get-fouryear-ppa-extension
37. st.gov.my/contents/2019/LSS/Guideline%20on%20LSSPV%20for%20Connection%20to%20Electricity%20Networks_%
20February%202019.PDF
38. mgtc.gov.my/what-we-do/green-incentives/green-investment-tax-incentives-gita-gite/
39. bursamalaysia.com/sites/5bb54be15f36ca0af339077a/
content_entry5c11a9db758f8d31544574c6/63312a2439fba20d86ba8e16/
files/26Sept_2022_Bursa_Malaysia_Enhances_Sustainability_Reporting_Framework_With_New_Climate_Change_Reporting.
pdf?1664169009
40. bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry617bfd2839fba20f54a06574/632bbd555b711a1976102d
a6/files/Bursa_Malaysia_VCM_Exchange.pdf?1664349271
41. mida.gov.my/mida-news/green-incentives-in-budget-2023-set-to-advance-sustainability-agenda-kenanga-research/
42. theedgemarkets.com/article/anwar-govt-has-no-plan-increase-electricity-tariffs-domestic-consumers
43. gov.uk/government/publications/contracts-for-difference/contract-for-difference#:~:text=CfDs%20incentivise%20invest
ment%20in%20renewable,when%20electricity%20prices%20are%20high
44. miti.gov.my/index.php/pages/view/industry4.0
45. freemalaysiatoday.com/category/business/2021/12/09/intel-mida-sign-mou-to-boost-talent-development/

238 Clean Growth Handbook Malaysia

Section 9 continued
46. utp.edu.my/Pages/The-University/Publications/UTP-Impact/Research-at-Universiti-Teknologi-PETRONAS-(UTP)%E2%
80%99s-Institute-of-Autonomous-Systems-covers-the-entire-value-chain-of-digitali.aspx
47. utp.edu.my/Pages/Research/Research%20Institutes/Institute-of-Autonomous-Systems.aspx
48. mymagic.my/sica/en
49. nanomalaysia.com.my/inanovation 2/
50. nst.com.my/lifestyle/bots/2021/11/744862/tech nanomalaysia and myipo innovation pact
51. mastic.mosti.gov.my/sti / rnd grants
52. petronas.com/ pcg /sustainability/new plastics economy
53. emerald.com/insight/content/doi/10.1108/CI-05-2021-0088/full/html
54. bioresources.cnr.ncsu.edu/wp-content/uploads/2019/10/
BioRes_14_4_9840_Latib_CHKYRI_Prospects_Wooden_Building_Construc_Malaysia_Current_State_16379.pdf
55. economy2030.resolutionfoundation.org/wp-content/uploads/2022/05/Growing_clean_report.pdf
56. gov.uk/government/publications/uk-net-zero-research-and-innovation-framework-delivery-plan-2022-to-2025
57. bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle-based+Taxonomy.pdf
58. digitalnewsasia.com/sustainability-matters/malaysia-budget-2023-missing-forest-trees-when-it-comes-sustainability
59. mranti.my/news/green-financing-programme-enables-smes-to-embrace-sustainability
60. cimb.com/en/newsroom/2021/cimb-group-to-accelerate-its-ambition-to-be-an-asean-sustainability-leader-by-mobilisin
g-rm30-billion-towards-sustainable-finance-by-2024.html
61. ukpact.co.uk/news/uk-pact-backs-low-carbon-transition-in-malaysia-with-1.4-million-in-support
62. asean-mayors.eu/2022/08/malaysia-climate-finance-for-programme-implementation/
63. blogs.worldbank.org/eastasiapacific/how-islamic-finance-is-helping-fuel-malaysia-green-growth
64. sc.com.my/resources/media/media-release/sc-unveils-principles-based-sustainable-and-responsible-investment-taxon
omy-for-the-malaysian-capital-market
65. petronas.com/media/media-releases/petronas-sets-venture-capital-arm#:~:text=The%20fund%20will%20act%20as,ass
ist%20startups%20in%20scaling%20up
66. unfccc.int/sites/default/files/NDC/2022-09/ENDC%20Indonesia.pdf
67. theglobalcity.uk/championing-sustainable-finance
68. assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1149690/mobilising-green-
investment-2023-green-finance-strategy.pdf
69. hsbc.com/investors/investing-in-hsbc/group-structure
70. hsbc.com/who-we-are/our-climate-strategy#:~:text=We're%20committed%20to%20the%20transition%20to%20net%2
0zero&text=We%20aim%20to%20achieve%20net,work%20to%20reduce%20our%20own
71. theedgemarkets.com/article/sustainability-imperative-hsbc
72. hsbcamanah.com.my/amanah-and-you/
73. assets.kpmg.com/content/dam/kpmg/my/pdf/micpa-2022.pdf
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75. hrdcorp.gov.my/wp-content/uploads/2021/04/12_2021_INDUSTRY-TRAINING-INTELLIGENCE-REPORT.pdf
76. cpsctech.org/2014/07/government-of-malaysias-initiative-for.html
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78. akademiabaru.com/doc/progeeV12_P1_10.pdf
79. gov.uk/government/news/new-research-hub-to-help-tackle-decarbonisation-and-improve-transport-resilience
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81. es.catapult.org.uk/about/
82. es.catapult.org.uk/what-we-do/net-zero-homes/
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84. es.catapult.org.uk/what-we-do/net-zero-places/
85. es.catapult.org.uk/what-we-do/net-zero-whole-systems-and-networks/
86. es.catapult.org.uk/what-we-do/energy-launchpad-and-international/
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89. es.catapult.org.uk/case-study/peterborough-city-council-develop-a-local-area-energy-plan/
90. themalaysianreserve.com/2022/12/22/tnb-strengthens-energy-transition-in-mou-with-3-high-performing-companies/
91. mbam.org.my/
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98. digitalnewsasia.com/insights/malaysias-startup-world-underrated-untapped-and-unknown
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101. climate-change.data.gov.uk/
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108. aecom.com/ca/projects/circular-economy-action-major-infrastructure-resources-optimisation-group-mi-rog/

Clean Growth Handbook Malaysia 239

 Section 10
1. data.worldbank.org/indicator/IC.BUS.EASE.XQ
2. bloomberg.com/press-releases/2022-01-26/malaysia-is-top-country-in-emerging-southeast-asia-for-foreign-investment-s
ays-milken-institute
3. statista.com/study/48369/malaysia/
4. mida.gov.my/why-malaysia/a-land-of-opportunities/
5. ef.sg/epi/

240 Clean Growth Handbook Malaysia

Disclaimer

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Published by
Department of Business & Trade

May 2023

MINISTRY OF ECONOMY