Malaysia is one of the fastest-growing economies in Southeast Asia and has set its sights on becoming a regional leader in renewable energy. As part of this vision, the government has announced plans to lift its ban on the export of renewable energy, which was put in place last year to support the growth of the local industry. This move is expected to accelerate the development of renewable power generation capacity on a larger scale, as companies take advantage of high demand from neighboring countries such as Singapore.
Economic Affairs Minister Rafizi Ramli has stated that the creation of an electricity market system to facilitate cross-border renewable energy trade will help position Malaysia as a regional renewable energy hub. He also noted that this system will be developed by the government at a later, unspecified date.
The lifting of the export ban comes at a critical time for Malaysia, which has committed to reducing its greenhouse gas emissions significantly by 2030 and achieving net-zero emissions by 2050. According to the International Renewable Energy Agency (IRENA), Malaysia will need to double its investments in renewable power capacity, infrastructure, and energy efficiency to at least $375 billion to meet this ambitious target.
Rafizi has outlined the government's ambitious plan to increase the proportion of renewable energy supply to 70% of its total capacity by 2050, up from the current level of 25%. Achieving this goal will require an estimated investment of MYR 637 billion ($143.63 billion) until 2050 in power generation resources, grid infrastructure, and energy storage capacity. This expanded capacity will allow Malaysia to trade surplus renewable energy with neighboring countries, creating new economic opportunities and attracting foreign investment.
The Malaysian government's commitment to renewable energy is also expected to drive job creation and economic growth, as the sector is poised to become a major driver of innovation and technological advancement in the region. With its abundance of natural resources and strategic location, Malaysia is well-positioned to become a key player in the global transition to a low-carbon future.
