Malaysia prepares to roll out energy transition roadmap

Malaysia is readying to roll out its Energy Transition Roadmap in phases starting from next month, aiming to reach a 70% renewable energy capacity by 2050. Economy Minister Rafizi Ramli revealed that the initial phase will incorporate strategic projects including hydrogen and solar farms and a renewable energy special zone. A subsequent phase in August will focus on legislative reforms and incentive fundings to facilitate the energy transition. Rafizi emphasized the need for tangible action and stated that the initiative will necessitate a massive investment of around MYR637bn (USD150bn). While discussions on potential responses to market volatility, including pegging the ringgit, are ongoing, Rafizi deferred monetary policy decisions to the Bank Negara Malaysia.