Minister: Malaysia on the path to become world leader in green energy
Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said Malaysia is moving towards the right path to be the world leader in green investment.
The country has the potential for green financing 130 potential projects comprising 111 renewable energy (RE) projects and 19 energy efficiency (EE) projects that worth about RM1.9 billion and RM248 million, respectively.
“We are also looking at Large Scale Solar Photovoltaic Plants, involving 18 companies for the next two years (2017 and 2018) with a capacity awarded 402MW,” he said during the Energy Investment Challenge in Asia – Powering Growth while Financing the Clean Energy Transition Forum at the Singapore International Energy Week 2017 (SIEW 2017).
Maximus said Malaysia is leading the world in green investment through the introduction of Green Islamic SRI (Sustainable and Responsible Investment) Sukuk, a Shari’ah compliant financial assistance, which gained the World Bank Group’s recognition.
“Malaysia’s overall capital market grew to RM2.84 trillion (0.7 %) in 2016. The size of our bond market grew to RM1.17 trillion (4.5 %); the equity market capitalisation ended the year at RM1.67 trillion; and our Islamic capital market stood at RM1.60 trillion, representing 60 % of the domestic capital market,” he said.
Maximus said Malaysia is the world’s third largest bond market, after Japan and Korea, as a percentage of gross domestic product (GDP) the country.
As at end 2016, Malaysia is seen to be the global leader in the sukuk market, with 53 % of the US$349 billion sukuk outstanding globally and 46 % of the US$75 billion sukuk issuance during the same year.
The issuance of Green Islamic SRI Sukuk amounting RM250 million for solar project to Tadau Energy and RM1 billion for Quantum Solar Park Malaysia, the world’s largest green sukuk issuance to construct the largest solar power project of its kind in Southeast Asia, has placed Malaysia in the world map as leader in green investments.
The recently launched Green Technology Master Plan 2017 (GTMP), which outlined the country’s green technology strategic plans, is aimed to create a low carbon economy.
“The GTMP lays the foundation for a holistic approach to socio-economic development, while adhering to the principles of sustainability, outlining initiatives that cut across six major sectors – energy, manufacturing, building, transport, waste and water,” he said.
The energy sector in Malaysia has matured considerably from relying on fossil fuels to diversifying into renewable sources, he said.
Maximus also said Malaysia is committed to reducing its greenhouse gas emission intensity of its Gross Domestic Product or GDP by up to 45 % by year 2030 in accordance with the Paris Agreement.