KUALA LUMPUR: Malaysian Photovoltaic and Sustainable Energy Industry Association (MPSEA) has called for clearer implementation guidelines and faster regulatory approvals to accelerate renewable energy investments following 2027 Budget.
The association welcomed the government's extension of green technology tax incentives until Dec 31, 2030, saying the longer timeframe would provide greater certainty for investors and businesses.
The incentives include investment tax allowances of up to 100 per cent for qualifying green technology projects and assets.
MPSEA president Ir Ts Justin Sim said the extension would strengthen investor confidence and encourage wider adoption of solar photovoltaic (PV) and energy storage technologies.
"The extension of green technology tax incentives until 2030 is an important development for the industry.
"This longer-term policy commitment will help strengthen investor confidence, encourage further investment and support the wider adoption of solar photovoltaic and energy storage technologies," he said.
However, Sim stressed that financial incentives alone would not be sufficient to accelerate the energy transition, with coordination among the government, regulators, utilities and industry players equally important.
He also welcomed the RM15 billion investment announced under the budget to strengthen the national electricity grid.
Infrastructure upgrades are essential to accommodate more renewable energy while maintaining system reliability, he said.
MPSEA called for clearer eligibility rules for tax incentives, greater support for battery energy storage systems and streamlined grid connection procedures to minimise project delays.
It also urged the government to improve access to financing and incentives for small and medium enterprises, commercial and industrial consumers, and local renewable energy companies.
Sim said a supportive policy environment and stronger industry participation would be crucial to advancing Malaysia's renewable energy development.
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