Malaysia seeks RM305 billion in green investment with bigger role for local firms
Recorded green investments total RM45.8 billion, including RM12.5 billion in renewable energy, a senior MIDA official said.
Malaysia has set a green investment target of RM305 billion by 2030, alongside efforts to give domestic businesses more opportunities to win higher-value work, acquire technology and create skilled jobs.
Green investments recorded so far totalled RM45.8 billion, including RM12.5 billion in renewable energy, said Malaysian Investment Development Authority (MIDA) deputy chief executive officer (Investment Development) Zuaida Abdullah. Nearly RM10 billion received MIDA approval between 2023 and 2025 for renewable energy projects covering solar, mini-hydro and bioenergy.
In an interview with Bernama, Zuaida said MIDA wanted investment promotion to focus more on economic outcomes, rather than capital alone. A new incentive framework for manufacturing rewards businesses that help domestic suppliers develop, enable technology transfer and provide quality employment.
Zuaida said the agency was helping Malaysian businesses satisfy technical and qualification requirements to compete for contracts with major developers. Government policy also gives preference in competitive evaluations to bidders proposing solar photovoltaic modules manufactured locally.
MIDA welcomed Budget 2027 provisions including RM1.5 billion for solar systems at government buildings. The sixth Large-Scale Solar programme, LSS6, reserves 150 megawatts for Bumiputera companies. The government has also enhanced and extended the Green Investment Tax Allowance, providing allowances of up to 100 per cent until Dec 31, 2030.
Planned infrastructure spending includes RM15 billion from Tenaga Nasional Bhd to reinforce the electricity grid. UEM Lestra plans a RM1 billion energy storage project at Kuala Lumpur International Airport, alongside a one-gigawatt hybrid energy development in Johor.
Olive Tree Property Consultants chief executive officer Samuel Tan told Business Times that economic gains would depend on bringing local businesses into renewable energy supply chains. He said policy consistency, investment incentives and infrastructure development would be important for sustaining investment and helping Malaysian companies compete.
