Premier: Sarawak mulls blended finance facility to fund energy transition
KUCHING (Aug 12): Sarawak is considering establishing a blended finance facility to support catalytic infrastructure and transition-aligned investments by leveraging risk mitigation instruments and deploying public capital as a crowd-in mechanism, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said this would enhance the bankability of these projects and unlock broader participation from the private sector and development banks.
'Let me be clear — realising this vision will require deep collaboration. We call upon development partners, private investors and financial institutions to join us in shaping a resilient, inclusive and investable energy transition for Sarawak,' he said.
He said this during the Ministry of Energy and Environmental Sustainability's Public Industry Engagement Day and the launching ceremony of the Sarawak Energy Transition Policy (SET-P) at the Borneo Convention Centre Kuching here yesterday.
Abang Johari said that to fully unlock SET-P's potential, Sarawak needed to first strengthen its short-term investment landscape.
'Energy transition opportunities in Sarawak can be broadly categorised into three categories..
'Firstly, commercially-viable projects with market-rate returns include utility-scale solar, hydropower, grid modernisation and much of our natural gas infrastructure. These investments are generally bankable and capable of attracting private capital without significant intervention,' he said.
He said the second category were public-good initiatives with no direct financial returns, which includes critical enablers such as workforce upskilling, public awareness programmes and sustainable urban transport systems.
'While they do not yield commercial returns, they are foundational to ensuring a just and inclusive energy transition,' he added.
Abang Johari said the third category was emerging solutions with below-market returns, which encompass 'nascent but strategically vital technologies' such as clean hydrogen, carbon capture, utilisation and storage (CCUS), energy efficiency and low-carbon transport.
'Despite their long-term potential, these initiatives currently struggle to attract private financing due to higher risk profiles and uncertain returns, particularly in emerging markets such as Sarawak,' said Abang Johari.
He said today's event was a critical step in fostering the collective ownership and shared responsibility needed for effective implementation.
'By working together, we can develop the enabling infrastructure, drive innovation through research and development and cultivate a highly skilled green workforce prepared to lead Sarawak into a resilient, low-carbon energy future,' he said.
Also present were State Legislative Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia Awang Nassar; Sarawak State Secretary Datuk Amar Mohamad Abu Bakar Marzuki; Works Minister Dato Sri Alexander Nanta Linggi; and Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni. Abang Johari Tun Openg blended energy transition finance
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