Global experts’ input needed for Malaysia’s green industrialisation: Tengku Zafrul
12 Aug 2024
Malaysia is calling on global investors, collaborators, experts, policymakers, industry leaders and stakeholders to work on progressive industrial policies to position the country as a green, regional manufacturing hub.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said global experts not only need to address the challenges of green industrialisation, but also unlock its vast potential for the benefit of every Malaysian and the planet.
In positioning Malaysia as a premier green investment destination by 2030, he said, the country is aiming for a 7.5-fold increase compared to previous levels.
“We will focus on both domestic direct investment and foreign direct investment.
“Sustainability goes beyond addressing climate issues and energy security, or even when we talk about just transitions today.
“At the heart of it is the need to develop resilience, a key lesson from the pandemic. For Malaysia, socio-economic resilience underscores our inclusive and holistic development as envisaged by the Madani Economy Framework,” he said in his speech at the National Consultation on Green Industrialisation in Malaysia: Integrated Policy Strategies for a Sustainable Future here today.
The two-day event is organised by the United Nations Trade and Development (Unctad) in collaboration with Khazanah Research Institute.
Tengku Zafrul said Malaysia’s current challenges, such as climate change, pollution, resource scarcity and geopolitical tensions demand rethinking and reshaping traditional industrialisation approaches.
“On the flip side, this rapid progress also presents us with new opportunities to innovate and lead in sustainable development. Although Malaysia produces only 0.37% of the world’s cumulative total greenhouse gases, developing countries like Malaysia are often held to environmental standards that developed nations can easily fulfil.
“The transition to net-zero emissions is projected to cost the nation over RM1.2 trillion, or around US$270 billion. So, this is a necessary investment as we strive to balance economic growth with environmental sustainability,” he said.
By leveraging seven key levers – energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, carbon capture utilisation and storage, and circular economy – Malaysia aims to mitigate climate change and drive sustainable economic growth, Tengku Zafrul said.
“We have set specific targets on socio-economic benefits in these areas, including an estimated RM80 billion contribution to gross domestic product and the creation of 350,000 high-skilled jobs by 2030.
“The recently launched Green Investment Strategy will leverage Malaysia’s existing strengths to secure investments and foster strategic partnerships to position Malaysia among the top 17 countries in the Global Competitiveness Index by 2030 and solidify our leadership in green industrialisation.”
Tengku Zafrul noted that Bank Negara Malaysia has mandated that at least 50% of new bank financing supports climate-supporting or energy-transitioning activities by 2026, including the greening of industrial parks.
He said the central bank is developing guidelines to align financial institutions’ strategies with Malaysia’s national climate goals, ensuring a robust financing framework for the greening of Malaysia’s industrial landscape.
“Miti is also looking into various initiatives to mobilise private capital towards advancing circular economies, climate mitigation, adaptation strategies, and sustainable mobility in our industry.
“While these policies represent significant progress, there is always room for enhancement, such as greater coordination and synergy among governmental agencies, industry stakeholders and civil society, strengthen the country’s research and development capabilities in green technologies, ensuring that workers and communities are adequately supported through robust training and retraining programmes and fostering better regional cooperation on greening the country’s industries and grids,” Tengku Zafrul said.
Source: The Sun
