Latest news with #SabahRenewableEnergyConference2025
Daily Express
05-05-2025
- Business
- Daily Express
Economy can withstand tariffs
Published on: Monday, May 05, 2025 Published on: Mon, May 05, 2025 By: David Thien Text Size: Dr Choy acknowledged that Malaysian consumer spending has dropped, accompanied with higher external demand, as Malaysia's manufacturing PMI declines by a margin. Kota Kinabalu: Sabah and Malaysia are not expected to be impacted drastically this year despite global economic uncertainty due to the tariff regime imposed by United States President Donald Trump. Growth rate is expected to be around 4.4 per cent. This is due to the strength of local economic activities, said Dr Roy Choy Swee Yew, the Chief Economist of MARC Ratings Berhad at the 'Economic & Market Outlook for 2025 and Beyond' session of the Sabah Renewable Energy Conference 2025 at Shangri-La Tanjung Aru Resort, recently. 'Sabah is the largest palm oil producer in Malaysia. Petroleum products and natural gas account for 50 per cent of Sabah's total exports,' Dr Choy said. He noted that currently, the high impact renewable energy projects in Sabah are the RM120 million Seguntor Bioenergy and the RM250 million Tadau Energy Solar Farm which is Malaysia's first green sukuk-financed renewable energy project. No economic crisis is seen for 2025, although the withdrawal of fuel subsidies later in the year may hike inflation temporarily for six months. Bank Negara is expected to maintain the OPR rate for this year, Dr Choy said. On the high impact infrastructure projects in Sabah include the RM40 billion Pan Borneo Highway and the RM7.5 billion Sabah–Sarawak Link Road (SSLR), he said. The high impact agriculture projects in Sabah include the RM33.59 million Land optimisation and Agro-Food Development and the activities under the Sabah Agricultural Blueprint 2021 – 2030. Dr Choy acknowledged that Malaysian consumer spending has dropped, accompanied with higher external demand, as Malaysia's manufacturing PMI declines by a margin. There is a broad-based increase in manufacturing exports. 'Domestic economic growth remains resilient despite a weaker external environment,' he said, adding that: 'Malaysia's inflation is expected to remain anchored following Trump's tariff announcements.' 'Central banks are adopting a more dovish stance, with plans to implement further interest rate cuts,' Dr Choy revealed. He foresees global economic growth is projected to reach 2.8 per cent in 2025, as global inflation is cooling. 'However, global trade flows and inflation dynamics remain vulnerable to U.S. tariffs. Trump's new tariffs also target the trade imbalance with Asean,' Dr Choy said, as Malaysia chairs the organisation this year. 'Financial market uncertainties rise amid heightened trade wars. Bond market retreated following the U.S. treasuries sell off as tariff hike on pause,' he said. Malaysia is going to introduce a carbon tax by 2026. 'Markets are pricing in a dovish Federal Reserve path, likely in response to expectations of slowing inflation and recession fears. Year-to-date, our ringgit has held up well. 'Persistent foreign outflows from Malaysia's bond and equity markets reflect waning investor confidence,' Dr Choy said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
05-05-2025
- Business
- Daily Express
Renewable Energy Certs an option: Expert
Published on: Monday, May 05, 2025 Published on: Mon, May 05, 2025 By: Sherell Jeffrey Text Size: Nirinder and Nazliyah. Kota Kinabalu: Sabah's clean energy transition is not only benefiting the environment but could also create new economic opportunities through carbon credits and renewable energy certificates, according to electrical engineer, Nirinder Singh Johl. 'With the second-lowest carbon emissions from electricity in Malaysia, Sabah is well-positioned to capitalise on its cleaner energy mix, particularly as global businesses increasingly look to reduce their carbon footprint,' he said at the at the inaugural Sabah Renewable Energy Conference 2025's Panel Session 2 titled Overcoming Hurdles and Transforming Tomorrow: Sabah's Renewable Energy Transition Strategies. 'There has been a new standard on carbon credits for grid-connected energy storage. Probably Sabah could explore that,' he said, adding that it gives a bit of financial sense to having storage. The Asia CarbonX Change PLT Chief Executive Officer pointed out Sabah's environmental advantage, noting the significant difference in carbon emissions compared to Peninsular Malaysia. 'Peninsula is 0.75 tons of CO2 per megawatt. We do not have coal here. We took a chance, a stand some time ago as a result of which the grid emission factor of Sabah is 0.55 and Sarawak obviously lowest, 0.19,' he said. Renewable Energy Certificates (RECs) represent another opportunity for funding clean energy projects in the State. Nirinder described these as the block chain for the green market. 'Every time you generate one megawatt hour, you stop conventional energy production with the same amount. The one from renewable does not have carbon in it. 'REC is basically the currency for the renewable energy market,' he said. For Sabah to fully participate in this market, he suggested developing a local certification system. 'If Sabah wants to go, probably Sabah needs to have an issuer, a Sabah issuer or probably in Malaysia, we call it M-VAX. We call it S-VAX for Sabah issuer. This is how you brand yourself,' he said. He said the financial incentives are substantial, with RECs commanding different prices depending on market maturity and regulatory requirements. 'Solar RECs in Peninsular Malaysia cost USD5, while in Singapore they command USD65 due to their carbon market and compliance requirements. 'When taxation comes in here, the prices of RECs will go up, making it perfect sense to include in your financial model,' he said. Among his recommendations for Sabah's renewable energy development was aligning power purchase agreements with the actual lifespan of energy plants. 'If the economic life of a solar plant is 25 years, give them 25 years. A hydro is 32 years, then give them 33 years,' he said. Meanwhile, Talent Corporation Malaysia Berhad Sector Head of Industry Partnership Nazliyah Mohd Ali said the expansion of renewable energy is also creating demand for workers with specialised skills. 'Last year, we conducted 10 sectors of impact study for Artificial Intelligence, digital and green economy to understand what the impact to the Malaysian workforce is,' she said. 'Based on the findings, we understand that there is a need for energy-related skills like energy economists, energy traders, all those things are moving forward for the next three to five years. 'Based on the National Energy Transition Roadmap, we know that there are a need for 62,000 professionals in green technology, green field,' she said. To bridge the skills gap, TalentCorp has come up with the MyMahir Future Skills Talent Council and developed tailored programs. 'We developed curated programs, which are very much according to what industry wants. We want to see what the skills gap from the fresh graduate are and see what we can do to fit in the gap in terms of the skills,' she said. For those interested in exploring these career paths, she pointed to available resources online. 'This study, the impact study is actually available online. You can go to and you can actually download this copy. 'We have another separate platform for secondary and primary schools. If you have children, you can go to our platform and they can see interactive videos to understand what is actually done in layman terms for them to learn,' she said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
28-04-2025
- Business
- Daily Express
Emphasis on solar, clean energy
Published on: Monday, April 28, 2025 Published on: Mon, Apr 28, 2025 By: Sherell Jeffrey Text Size: Sabah is building Southeast Asia's largest battery system in Lahad Datu. This massive 400 megawatt-hour battery is expected to be ready in two months. Kota Kinabalu: Sabah is charging ahead in switching to solar and other clean energy sources to provide affordable, sustainable power while addressing challenges like grid stability and funding. With 350 megawatts of solar capacity expected to be connected to the grid by 2026 and plans to expand to 800 megawatts by 2030, Sabah hopes to make clean energy accessible and affordable. 'Right now, solar in the recent bid, we got a very competitive price range between 20 to 24 cents per unit,' said Energy Commission of Sabah (ECoS) Strategic Planning Director Terrence John Kouju. 'That is quite effective and way below what we expected. We will continue to use solar as a main source of renewables going forward in the next five years,' he said at the inaugural Sabah Renewable Energy Conference 2025's Panel Session 2 titled Overcoming Hurdles and Transforming Tomorrow: Sabah's Renewable Energy Transition Strategies. 'Sabah currently has 150 megawatts of solar connected to its power grid, with another 200 megawatts recently approved. These efforts are part of Sabah's bigger plan to reach 80 per cent renewable energy by 2050,' he said. He noted that despite solar's cost advantages, there is a technical challenge, and Sabah's power grid can only handle up to 22 per cent solar power without becoming unstable. To solve this problem, Sabah is building Southeast Asia's largest battery system in Lahad Datu. This massive 400 megawatt-hour battery is expected to be ready in two months. The Feed-in Tariff (FIT) programme introduced in 2014 was a game-changer for solar energy in Sabah. 'When FIT came in 2014 in Sabah, the whole scene changed, the whole landscape. It made it easier for us to install solar panels into the grid. Why? Because it is fully subsidized,' said Terrence. However, when ECoS took over in 2022, the FIT programme ended. 'We can no longer rely on Federal Peninsular side of the collection from the consumers. So, when we look at Sabah's collection only, the total collection here is only 24 million. But the commitments to FIT total up to 16 million a year,' he said. 'Previously, the Large Scale Solar is between 59 and 54 cents per unit. In contrast, the new exercise, even 15 megawatts, the highest award, still produces below 34 cents and at least below 30 cents,' he said. This makes solar much more cost-effective compared to other renewable sources, especially when compared to the current average electricity price in Sabah. 'The electricity tariff is now, Sabah Electricity is having electricity tariff on average 34.5 cents per unit. 'For other resources such as biomass, biogas, geothermal, all these generation costs from this type of renewables cost more than 30 cents,' he said. Despite solar's decreasing costs, financial challenges remain in Sabah's renewable energy transition. The end of the Feed-in Tariff system created funding gaps that must be addressed as Sabah works toward energy independence from the federal government by 2030. 'Going forward, once the subsidy from Federal Government ceases to support Sabah, because eventually by 2030, that is the target where Federal wants Sabah to be self-sustainable in terms of electricity supply, Sabah has to come up with a solution,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Sun
27-04-2025
- Business
- The Sun
Strategic location, abundant natural resources fuel Sabah's renewable energy development
KOTA KINABALU: The growth of renewable energy in Sabah is not just an aspiration but a step forward towards reality, Qhazanah Sabah Bhd group CEO Datuk Ahmad Rizal Dahli said. He said Sabah is strategically located near several rapidly growing regional economies, giving the state the potential to tap into new market opportunities and benefit from spillover effects – especially with its close proximity to emerging economic hubs like Indonesia' Nusantara. 'With Sabah's abundance of natural resources – especially its high solar radiation levels – it holds enormous potential for renewable energy development. 'In fact, the state could generate up to 99.4GW from solar PV alone, making it a promising player in shaping sustainable energy solutions for the future,' he told delegates at the Sabah Renewable Energy Conference 2025 held last week. Ahmad Rizal said the synergy between public and private sectors, regulators and investors, and innovators and implementers is essential. 'Looking ahead, it is essential to foster collaboration that leverages the strengths of all stakeholder groups – from financial institutions and technology providers to regulators and asset developers. 'To achieve this, we recognise that green financing, sustainable investment models, and ESG-aligned capital flows are no longer optional – they are key drivers of future growth,' he said. Ahmad Rizal said renewable energy goes beyond just power generation and infrastructure – it's about uplifting communities, creating quality jobs, and building resilience across Sabah, especially among rural and indigenous populations. 'To us, partnerships reflect the significant collaboration between the public and private sectors to achieve a collective goal to drive the change within Sabah's renewable energy industry. 'Let today be the start of stronger collaboration and bold, forward-thinking ideas. Together, we must commit to building a Sabah that stands out in Malaysia's clean energy future. 'This is no longer a choice – it's a necessity. Each of us has a role to play in protecting our environment while still creating economic opportunities,' Ahmad Rizal said. Malaysian Rating Corporation Bhd (MARC) group CEO Arshad Mohamed Ismail said Sabah has long been a key contributor to Malaysia's economy. However, the state's energy sector faces significant challenges that threaten its long-term sustainability. He said electricity supply remains constrained, as reflected in Sabah's lower reserve margin compared to that of Peninsular Malaysia, underscoring the urgent need to expand generation capacity. 'The situation is further compounded by the state's heavy reliance on fossil fuels, with 86% of power generation currently dependent on natural gas – a resource that is finite in the long term. 'Despite having an estimated 101GW of renewable energy potential, particularly in hydro, solar, and biomass, only 7.3% of Sabah's current energy mix is derived from renewable sources. 'This highlights the need for the state to move towards cleaner, more sustainable energy solutions,' he said. Arshad said the launch of the Sabah Energy Roadmap and Master Plan 2040 sets a bold vision for reliable, affordable, accessible, and sustainable energy by 2040. With targets like 50% renewable capacity by 2035, full rural electrification by 2030, and carbon neutrality by 2050, success will require strong public-private partnerships and significant investment. 'At MARC, we envision ourselves as Sabah's key partner in transforming today's challenges into tomorrow's opportunities. Our primary focus is on enabling a secure and sustainable energy future for Sabah by providing professional financial expertise to support these critical transitions. 'MARC is able to provide rigorous assessments of renewable energy projects. By meticulously rating green and sustainability-linked bonds and sukuk, we reinforce investor confidence and validate Sabah's strong AAA domestic credit profile. 'This robust foundation is essential to unlocking the capital required for large-scale renewable energy projects,' he said. Arshad said MARC remains committed to supporting Sabah's renewable energy aspirations through its expertise in credit ratings, green financing, and investment facilitation.
Daily Express
25-04-2025
- Business
- Daily Express
Sabah on cue to meeting renewable energy goal
Published on: Saturday, April 26, 2025 Published on: Sat, Apr 26, 2025 By: Sherell Jeffrey Text Size: At the Sabah Renewable Energy Conference. Kota Kinabalu: Sabah has awarded all necessary projects to achieve its 40 per cent renewable energy target by 2030, according to Energy Commission of Sabah (ECoS) Chief Executive Officer Datuk Abdul Nasser Abdul Wahid. 'This puts Sabah on a definitive path to transform its power grid,' he said at the closing of the Sabah Renewable Energy Conference 2025 (SAREC 2025), jointly organised by Qhazanah Sabah Berhad and Malaysian Rating Corporation Berhad at Shangri-La Tanjung Aru, Thursday. Abdul Nasser said the secured projects position Sabah to potentially exceed its goals, with 50 per cent sustainable energy capacity now projected by 2035, five years ahead of the original 2040 timeline. 'Up to 2030, our targets are definitive because all required projects have been awarded, putting Sabah's initial 40 per cent renewable energy target on solid ground while creating room to accelerate the 50 per cent goal,' he said. The transformation is anchored by the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040), unveiled on Sept 19, 2023. 'We developed this comprehensive plan before assuming regulatory powers because we understood the importance of having a clear direction from day one,' he said. The master plan outlines 16 strategic action plans with defined short, medium and long-term goals, complete with key performance indicators. 'Some targets are ambitious, even tough, but necessary for Sabah's energy future,' he added. On its three-pronged energy strategy, he said Sabah is implementing what it calls the energy triangle approach, namely, ensuring energy security through reliable power generation, promoting equal accessibility and affordability, particularly in rural areas and fostering environmental sustainability through clean energy solutions 'Unlike other places, we are not just focusing on affordability, accessibility remains our primary concern, especially for rural electrification,' he said. He said Sabah's energy transition agenda has been specifically tailored to the State's unique characteristics and available resources. 'Our approach differs from the National Energy Transition Roadmap. We have developed solutions that leverage Sabah's resources and address our specific challenges,' he said. Current projections indicate Sabah could potentially reach its 50 per cent renewable energy target ahead of the 2035 schedule if all planned projects are implemented on time. 'We have built-in buffers, but with proper execution, we are confident of exceeding expectations,' he said. He pointed out that achieving these goals requires a concerted effort from all stakeholders. 'This is not a task for any single entity. We need government agencies, industry players, investors and communities working together,' he said. Additionally, he noted the unprecedented cooperation seen at SAREC 2025, where competing firms came together for Sabah's benefit. 'We witnessed competitors united by a common purpose, that is the spirit we need moving forward,' he said. He said the energy transition presents opportunities for economic growth and innovation. 'The challenges are real, but they bring huge potential for job creation, technological advancement and community empowerment,' he said, adding that they are actively working to create an enabling environment through policy improvements and investment incentives. 'We are committed to establishing Sabah as not just a national leader in renewable energy, but a regional example. 'This is more than just ambition, it is our collective responsibility. Together, we will build the energy future Sabah deserves,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
