The government is committed to its goal of achieving net-zero greenhouse gas emissions by 2050, and as such, is increasing existing funding schemes and expanding tax incentives to encourage the adoption of green technologies in the country.
Proposals For Green Technologies in Malaysia:
Through Budget 2023, it is proposed to extend the deadline for applying for the Green Investment Tax Credit (GITA) and Green Income Tax Exemption (GITE) to 31 December 2025. It also proposed extending tax breaks and exemptions from three years to five years.
Meanwhile, GITE is available to qualified green technology service providers listed under the MyHIJAU directory. Through these tax benefits, eligible companies can receive a 70% income tax exemption.
Apart from this, the government is also improving the Green Technology Financing Scheme (GTFS), increasing the guarantee value to RM3 billion by 2025 and extending the guarantee scope to the electric vehicle (EV) sector with a guarantee limit of up to 60%.
Bank Negara Malaysia will also provide RM1 billion in soft loans under the High-Tech and Green Fund to support innovative start-ups and RM1 billion for small and medium enterprises (SMEs) under the Low-Carbon Transition Fund.
The government has also pushed the Government-Linked Companies (GLC) and the Government-Linked Investment Companies (GLIC) to support its sustainability agenda.
In this regard, it will introduce a sustainability framework covering the roles of GLCs and GLICs in its sustainability agenda, and set goals for organisations to achieve a portfolio that is fully compliant with Environmental, Social and Governance (ESG) standards and carbon neutral operation.
The government will also ask GLCs and GLICs to undertake green procurement worth RM330 million to drive their sustainability agenda and provide electric vehicle infrastructure in the country.
Petronas subsidiary Gentari is committed to installing solar panels in government and commercial facilities with a cumulative PV capacity of 3 MW and providing 500 electric vehicle charging facilities across the country by 2024.
Tenaga Nasional Bhd is also working on installing rooftop solar panels, as well as providing electric vehicle charging facilities, investing RM165 million until 2025 to support the government’s sustainability agenda.