Govt to allocate RM2 bln for national energy transition facility

He said the facility would enable catalytic blended finance to ensure a seamless flow of financial resources towards energy transition projects that are marginally bankable or yielding below-market returns.

"Considering Malaysia's current state of immature decarbonisation technologies, our progress will significantly hinge on alternative energy sources and robust regional and international collaboration," he said in a speech at the launch of the second phase of the National Energy Transition Roadmap here today.

"As the paramount challenge in energy transition is financing, it is estimated that an investment of at least RM1.2 trillion between 2023 and 2050 is needed to enable responsible energy transition," the prime minister said.

Anwar said in this decade alone, the government requires between RM60 billion and RM90 billion to be allocated for crucial projects, including the expansion of public transportation, strengthening grid infrastructure, and reskilling of human capital.

He also highlighted energy efficiency as one of the energy transition levers that offer effective long-term solutions to manage energy consumption, thus reducing carbon emissions.

To this end, he said the government will launch a major retrofit programme to enhance energy efficiency in government buildings.

"An ESCO (energy service companies) platform will be established to connect private ESCOs, which are mainly small and medium enterprises, with government projects.

"The central role of the platform would be to serve as an intermediary that pools government building retrofitting projects and encourages public-private coordination in the ESCO market," he added.