Malaysia PM Anwar Ibrahim Announces $430M Facility for Energy Transition

Prime Minister Anwar Ibrahim on Wednesday made an announcement revealing Malaysia's plan to allocate a sum of 2 billion ringgit (equivalent to USD 430 million) for the creation of a National Energy Transition Facility. 

This initiative is designed to serve as a facilitator of catalytic blended finance in the realm of energy transition. During his speech at the event marking the beginning of the second phase of the National Energy Transition Roadmap, Anwar elaborated on the purpose of the facility. 

He explained that it is intended to serve as a catalyst for blended finance. This mechanism will ensure the steady flow of financial resources into energy transition projects that might otherwise have limited bankability or offer returns below market expectations. 

Anwar pointed out that Malaysia's progress in the sphere of decarbonization, given its current stage of technological development, will be heavily reliant upon embracing alternative energy sources and fostering robust partnerships not only at a regional but also at an international scale. 

The prime minister stressed that the primary hurdle in achieving a successful energy transition lies in securing adequate financing. He stated that it is predicted that an investment of at least 1.2 trillion ringgit over the period from 2023 to 2050 will be required to enable a responsible and effective energy transition. 

Furthermore, Anwar emphasised the immediate requirement for a significant financial allocation, ranging from 60 billion to 90 billion ringgit.

 These funds are crucial for pivotal projects in the upcoming decade, including the expansion of public transportation networks, the strengthening of grid infrastructure, and the reskilling of the workforce. 

In addition, PM Ibrahim disclosed that the government is getting ready for the launch of a retrofit initiative, with the primary objective of improving energy efficiency in government-owned buildings. 

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