Making the transition to a net zero economy will need multilateral cooperation and significant financial support. NETR estimates that Malaysia will need up to RM1.85 trillion to support the nation’s energy transition initiatives - 18% of funding is required primarily in renewable energy power generation and green mobility.
Despite being a major undertaking for the country, there are value creation opportunities for forward thinking companies. But, are Malaysia businesses ready to grab these investment opportunities?
Based on PwC’s 27th CEO survey, 85% of Malaysian CEOs are in progress of energy efficiency improvements and innovation of new, climate-friendly products, services or technologies respectively. That being said, Malaysia’s current decarbonisation rate is still at 2.5% - behind what is required to meet the nationally determined contributions target of 7.2%.
The imperative to accelerate decarbonisation efforts is clear. In light of rising inflationary costs and investor pressure, companies will need to find the right areas to invest for a greener future.
Corporate Malaysia generally had a greater understanding of net zero initiatives after NETR was launched. However, they still face difficulties in their energy transition journey.
Main hurdles companies face in their energy transition journey are:
Key factors that keep companies at the preliminary stage of their energy transition journey:
Companies in the intermediate stage of their energy transition journey do not have a sufficient level of understanding in terms of skills/jobs required to operate under a lower-carbon model.
The National Energy Transition Roadmap (NETR) Phase was launched in August 2023 to accelerate Malaysia's energy transition. Here's PwC Malaysia's summary and analysis of what NETR means for businesses.
This publication by PwC Malaysia in collaboration with PETRONAS highlights the key opportunities and barriers to a just transition, synthesised from a series of roundtables on the way forward for Malaysia and the energy sector in pursuing the transition to an inclusive low carbon economy.
Publication
A MICPA-PwC Malaysia survey report.
