MALAYSIA is poised to attract up to RM637 billion in direct investment into renewable energy and green technology by 2050, according to projections shared by the Ministry of Energy Transition and Water Transformation (PETRA) in Parliament on Thursday.
Deputy Prime Minister II and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof said ministry anticipates that the sector will generate approximately 310,000 direct jobs over the next 25 years.
In its written response to a question by Rompin MP, Datuk Abdul Khalib Abdullah, the ministry outlined a comprehensive suite of policy tools and regulatory reforms aimed at positioning Malaysia as a preferred destination for sustainable investment.
“To attract foreign direct investment (FDI), the government is committed to strengthening current renewable energy (RE) programmes and introducing wider electricity supply options to make Malaysia a competitive destination for green investment,” the ministry stated.
These initiatives include the expansion of the Large-Scale Solar Programme as the country’s flagship solar power platform, the continuation of feed-in tariff mechanisms, and the enhancement of the Low Carbon Energy Generation Programme to encourage investment in non-solar renewable sources.
The government is also streamlining the Corporate Renewable Energy Supply Scheme (CRESS), allowing corporations to procure electricity directly from renewable generators—supporting their environmental, social, and governance (ESG) targets. In tandem, fiscal incentives such as the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) will continue to underpin capital inflow into green industries.
The ministry stressed that skills transfer and job creation for Malaysians remain central to its strategy.
All government-approved renewable energy projects must have a minimum 51 per cent local equity ownership. This requirement applies across major programmes, including the Large-Scale Solar initiative, CRESS, the Feed-in Tariff scheme, and the Community Renewable Energy Aggregation Mechanism (CREAM).
“This approach will facilitate the transfer of skills and specialised technologies in the renewable energy sector to the local workforce,” Fadillah said.
Among the areas of emphasis are engineering, procurement, construction, and commissioning (EPCC), providing opportunities for highly skilled roles in project management, design, legal and technical disciplines.
The manufacturing and installation of renewable components such as solar panels, boilers, energy storage systems, and electric vehicle charging infrastructure are also expected to generate strong demand for local content.
Additionally, the ministry is focusing on advanced circular economy technologies—including carbon capture, utilisation and storage (CCUS), waste recovery, and waste-to-energy (WtE)—with the goal of building local capabilities in both design and operation.
“These initiatives are expected to ensure that Malaysians not only benefit from job opportunities but also gain critical knowledge and experience to support the country’s transition to a low-carbon economy,” he added. - August 7, 2025
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