KUALA LUMPUR: Malaysia is targeting RM305 billion in green investments by 2030, with a stronger emphasis on ensuring local companies capture a bigger share of the opportunities through higher-value contracts, technology transfer and skilled job creation.
Malaysian Investment Development Authority (MIDA) deputy chief executive officer (Investment Development) Zuaida Abdullah said Malaysia had recorded RM45.8 billion in green investments to date, including RM12.5 billion in the renewable energy (RE) sector.
Between 2023 and 2025, MIDA approved nearly RM10 billion in renewable energy investments spanning solar, mini-hydro and bioenergy projects, underscoring the country's efforts to expand its clean energy capacity.
Investment momentum remained strong in the first half of 2026, with Malaysia approving RM218.5 billion in investments expected to generate more than 99,000 jobs.
However, Zuaida said attracting capital alone was insufficient, with the broader priority being to ensure investments generate lasting economic benefits by strengthening domestic supply chains, developing local expertise and creating quality employment.
She said MIDA was shifting towards an outcome-based approach to investment promotion, particularly through the new manufacturing sector incentive framework, which rewards companies for developing local suppliers, facilitating technology transfer and creating quality jobs.
The approach is intended to ensure foreign and domestic investments contribute more meaningfully to Malaysia's industrial capabilities rather than merely adding to headline investment figures, she told Bernama in an exclusive interview.
Olive Tree Property Consultants chief executive officer Samuel Tan said Malaysia's ability to translate its green investment ambitions into tangible economic gains would depend on how effectively local businesses were integrated into the renewable energy supply chain.
He told Business Times that greater domestic participation would help Malaysian companies build technical expertise, secure higher-value contracts and capture a larger share of the economic benefits as demand for green technologies and infrastructure expanded.
At the Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) 2026, held from Oct 7 to 9, MIDA targeted RM4 billion in potential investments in the renewable energy sector.
Zuaida said Malaysia needed to prioritise domestic companies and local talent as demand for RE infrastructure expanded, supported by stable policies, reliable suppliers and a skilled workforce.
Major project owners, including TNB Power Generation Sdn Bhd and TNB Renewables Sdn Bhd, play a strategic role in driving project development, while engineering, procurement, construction and commissioning (EPCC) contractors coordinate procurement, installation and testing.
These contractors also help identify qualified local vendors for components such as solar photovoltaic modules, inverters, mounting structures and cables, creating opportunities for Malaysian suppliers to participate in the renewable energy value chain.
Zuaida said that MIDA was actively working to connect local companies with major project developers by assisting domestic businesses in meeting the necessary technical standards and qualification requirements to secure contracts.
The initiative is particularly relevant to the sixth cycle of the Large-Scale Solar (LSS6) programme, which incorporates battery energy storage systems (BESS) with a total capacity of 2,650 megawatts.
Under the Energy Transition and Water Transformation Ministry's policy, bidders using locally manufactured solar photovoltaic modules are given priority during the competitive evaluation process, providing an avenue for domestic manufacturers to strengthen their position in the growing clean energy market.
The government's latest green energy initiatives under Budget 2027 are expected to further expand investment opportunities across the sector.
MIDA welcomed the measures announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, including a RM1.5 billion investment to install solar systems at government buildings.
A dedicated 150-megawatt allocation under LSS6 has also been reserved for Bumiputera companies, supporting broader participation in the green economy.
Meanwhile, Tenaga Nasional Bhd plans to invest RM15 billion to strengthen the national electricity grid, while UEM Lestra is planning a RM1 billion energy storage system project at Kuala Lumpur International Airport.
UEM Lestra is also planning a one-gigawatt hybrid energy project in Johor, adding to the pipeline of large-scale renewable energy developments.
MIDA also welcomed the RM1 billion Climate Fund announced by Kumpulan Wang Persaraan (Diperbadankan) (KWAP), which will be dedicated entirely to green projects.
On the incentives front, the government has extended and enhanced the Green Investment Tax Allowance (GITA), offering investment tax allowances of up to 100 per cent until Dec 31, 2030.
The incentive is aimed at accelerating investment in renewable energy, decarbonisation and green technologies by encouraging businesses to adopt cleaner and more sustainable practices.
Tan said consistent policy support, effective investment incentives and continued infrastructure development would be important in sustaining Malaysia's green investment momentum and enabling local companies to participate more competitively in the transition.
Ultimately, he said the success of the country's green investment drive should be measured not only by the amount of capital attracted, but also by its ability to develop competitive Malaysian businesses, strengthen domestic industrial capabilities and retain more economic value within the country.
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