KUALA LUMPUR: Malaysia is emerging as a top investment destination for renewable energy (RE) projects, backed by its wide natural resources, policy support, and technological readiness, said US-listed GE Vernova decarbonisation leader for Asia Kazunari Fukui.
According to Fukui, Malaysia's resource-rich landscape coupled with initiatives like the National Renewable Energy Policy Act, has attracted global attention.
"Japan, for instance, is looking at Malaysia for carbon storage solutions spearheaded by the likes of Petroliam Nasional Bhd (Petronas) and hydrogen sourcing, particularly from Sarawak. This is all because Malaysia is rich in renewable resources.
"Countries like Japan, Korea and Taiwan lack sufficient renewable resources. Malaysia, with its solar, wind, and hydro potential, is a natural partner for low-carbon fuel exports," he told Business Times in an interview.
According to Fukui, Malaysia has already seen success with high-efficiency combined-cycle gas power plants like the Sultan Ibrahim power plant and Edra Power Holdings Sdn Bhd's facilities, both of which utilise GE Vernova's cutting-edge gas turbine technology.
He said the Sultan Ibrahim plant boasts a 64 per cent energy efficiency and is already 50 per cent hydrogen-ready, paving the way for cleaner power generation in the future.
"Additionally, projects like EDRA have contributed to job creation, with over 2,500 jobs generated during its development phase," he said.
Commenting on the power sector in Malaysia, Fukui said Malaysia has been very progressive in this front.
"GE Vernova really commend the Malaysian government for doing their piece. Malaysia has a target to generate 31 per cent of power from renewable sources by 2025, eventually getting to 70 per cent by 2050. Very ambitious and we like Malaysia's direction in terms of driving energy transition.
"However, I believe energy transition is not just about adding renewables. We really need that to be backed by dependable power. So we think it's very important that Malaysia continues to use dependable power, the thermal asset," he said.
Moving forward, Fukui said GE Vernova is ready to play a pivotal role in supporting Malaysia's energy transition.
To further enhance its attractiveness, Fukui suggested Malaysia continue scaling up renewables and supporting decarbonised thermal energy through policy incentives.
He said investments in grid infrastructure and technologies like carbon capture, hydrogen readiness, and digital tools will also be crucial.
"Malaysia has the tools, policies, and natural resources to lead the way. The collaboration between the government, industry players, and technology providers like GE Vernova is critical to unlocking this potential," he added.