KUCHING: Malaysia is perhaps leading the region in an effort towards adopting green technology, encouraging Malaysians towards a green lifestyle resulting in a vibrant local green economy.
Under the watchful eye of the Malaysian Green Technology Corporation (GreenTech Malaysia), various efforts are made to lead the nation’s green technology landscape through impactful projects under its four flagships; the Green Malaysia Plan, Green Procurement, Electric Mobility and Sustainable Living.
Through the dynamic leadership of its group chief executive officer, Ahmad Hadri Haris, GreenTech Malaysia has raised the bar since 2013 to introduce game-changing initiatives working in partnership with over 100 partners comprising international and local government ministries, municipal councils, financial institutions, public and private corporations as well as academia.
Over the last couple of years, Malaysia has become an active participant and contributor to the global green transformation, from collaborating with several countries at COP21 to organising international green events on home ground.
“To keep pace with these, at GreenTech Malaysia, I have been focused on strengthening the company’s foundation and forming the right partnerships in order for us to venture into bigger projects that can create greater socio-economic impact in line with Malaysia’s green agenda,” said Ahmad Hadri.
“We are always on the lookout for innovative ideas that have growth potential, which we will evaluate and subsequently help connect with financiers to make these ideas viable,” he added.
Under the Green Malaysia Plan Flagship, the organisation to date has developed 10 green policies and blueprints, including the National Electric Mobility Blueprint, Kedah Green Agenda, Selangor Green Action Plan as well as the recently sanctioned Green Technology Master Plan.
These documents are aimed at guiding the intended authorities and sectors to incorporate green action plans within their area of jurisdiction, contributing to the reduction of nation’s greenhouse gas emissions.
Green money for green ventures
Perhaps a true sign of success comes in the form of the Green Technology Financing Scheme (GTFS) – facilitated by GreenTech Malaysia – which has thus far financed 272 green projects, amounting to RM2.96 billion.
These projects are expected to contribute to the avoidance of 3.161 million tonnes of CO2 equivalent, creating a total of 4,645 green jobs and generating RM5.812 billion in green investments.
“Over the years, the GTFS has helped Malaysian financial institutions grasp the prospect of green technology ventures better resulting in a growing acceptance amongst banks to fund new green projects even in the absence of proven track record,” explained Ahmad Hadri.
“This clearly signals the shift in mindset amongst conventional banks to include green impact in their considerations in addition to the usual financial criteria.” Currently, the GTFS boasts 28 international and local participating financial institutions such as Citibank, Standard Chartered, Public Bank and Maybank, from only 8 in 2010.
The GTFS has also been recognised internationally for its successful role in spurring green investments. As a result, GreenTech Malaysia has been appointed as one of the founding members for the world’s first Green Bank Network in November 2015 and will be instrumental in facilitating the growth of green businesses within the Asean region.
Under the Green Procurement Flagship, GreenTech Malaysia initiated the Government Green Procurement programme in 2013, as the public sector represents about 15 per cent of Malaysia’s GDP.
Through a lead-by-example from Malaysian authorities, GreenTech Malaysia expects that the programme would have a trickle-down effect to influence the private sector, creating both supply and demand in the local market.
To date, GreenTech Malaysia has extended the programme to 12 Ministries and Agencies with the target to have all Ministries participate in the programme by 2017, collectively achieving 20 per cent of green procurement by 2020.
To further allow procurers to easily identify certified green products and services, GreenTech Malaysia introduced the MyHIJAU Mark in 2015, a green recognition scheme that identifies green products and services with existing green certifications, which are then registered and listed in the MyHIJAU Directory.
Presently, about 103 companies are taking part in the MyHIJAU Mark and Directory with 369 registered green products and services. GreenTech Malaysia targets to register 300 companies with 2,000 green products and services by 2020.
In the area of Electric Mobility, GreenTech Malaysia has embarked on several engagements with stakeholders and the public to create greater awareness on the feasibility of electric vehicles (EVs) for public and private ownership.
One of the key initiatives is the Tesla Programme initiated in 2015, which saw the Government approved for 100 Teslas to be imported to the country on a duty-free basis, to be leased to corporate leaders and key influencers to advocate the benefits of EVs. To date the organisation has delivered 17 Teslas, adding to the 114 number of EVs currently on Malaysia roads.
In support of the increasing shift to EVs, GreenTech Malaysia launched its very own charging station network, ChargEV, in 2015, to provide EV users greater charging convenience. The ChargEV technology is developed in partnership with The New Motion, a global leading manufacturer for EV charging system.
To date, GreenTech Malaysia has installed 150 ChargEV stations across the nation with the support from the increasingly eco-minded premise owners and property developers. GreenTech Malaysia is confident of expanding the network further, particularly with the partnerships forged with Petronas Dagangan Bhd and BMW Malaysia.
“During our engagement with industry players and the public, we can definitely see the excitement for EVs in the market. The challenge of course was the price factor and also to shift Malaysians away from the norm and embrace new technology.
(SOURCE: Greentech Malaysia)
(SOURCE: Greentech Malaysia)
“It is, therefore, our role to continuously demonstrate the feasibility of EVs, to gain market acceptance. This is critical in order for us to convince EV manufacturers that Malaysia has the potential to be the regional hub and to encourage them to invest in Malaysia,” Ahmad Hadri explained.
“After years of advocating, I am pleased to share that we are beginning to see a gradual shift to EVs as these have proven to be a practical solution to pollution while also helping drivers to save cost on fuel and maintenance and providing a green lifestyle option in transportation,” he added.
Under the Sustainable Living Flagship, the Low Carbon Cities Framework and Assessment System has been extended to 52 local authorities currently, an impressive rise from six in 2013.
This is a clear indication that more local authorities are prioritising the concept of sustainable cities for their municipalities. GreenTech Malaysia targets to have all 154 local authorities understand the concept of the framework and 52 local authorities to implement the LCCF and produced their baseline CO2 data by 2020.
Ahmad Hadri further commented, “I am pleased to share that since realigning the company’s focus areas in 2013, GreenTech Malaysia has been able to deliver impactful results, through our many effective partnerships. This is a clear testament of the increased interest in green technology solutions, signalling promising growth in the green market.”
“To further maximise on this growth potential, we have assigned some of these projects to our subsidiaries, which will allow us to focus more sharply on the targeted key areas. These subsidiaries will also assist the organisation to drive commercial projects as part of our strategy to become self-sustaining and support the national green agenda,” he added.
Between 2015 and 2016, GreenTech Malaysia established three subsidiaries namely, GreenTech Malaysia Alliances Sdn. Bhd. (GTMA), GreenTech Catalyst Sdn. Bhd. (GTC) and GreenTech IdeasLab Sdn. Bhd. (GTI).
GTMA is focused on driving green businesses through strategic partnerships, while GTC is responsible to expedite the adoption of green technology through offering services in finance, entrepreneurship, standardisation and incentivisation.
Meanwhile, GTI is tasked with developing green skills and promoting green events to spur the economy through customised green training programmes, on-ground public engagements and industry-level international exhibitions.
Green financing of RM3.5 billion for 290 projects
(SOURCE: Greentech Malaysia)
On its green financing efforts, GreenTech Malaysia expects to fully use the RM3.5 billion GTFS by this year.
Ahmad Hadri said this was in line with the increase in implementation of green projects to 290 with the support of 28 financial institutions.
He said the GTFS, started in 2010 with an allocation of RM1.5 billion, would fund about 30 green projects this year, mainly from the renewable energy sector, particularly solar energy.
“We also hope to get more companies from the building sector to be energy-efficient, including the transport and waste energy sectors,” he said at a media briefing on Malaysia’s Green Technology Landscape here today.
Under scheme, financial institutions would provide loans to firms, while the government provide up to 60 per cent guarantee of the loan amount with an additional two per cent interest rate rebate for the interest charge for the banks, he said.
“Over the years, the GTFS has helped Malaysian financial institutions grasp the prospect of green technology ventures better, resulting in a growing acceptance among banks to fund new green projects even in the absence of proven track record.
“This clearly signals the shift of mindset among conventional banks to include green impact in the considerations in addition to the usual financial criteria,” he said.
Up to 2016, there were 272 green projects received RM2.96 billion in funding and this was expected to contribute to the avoidance of 3.16 million tonnes of carbon dioxide equivalent, creating a total of 4,645 green jobs and generating RM5.81 billion in green investments, he said.
Ahmad Hadri said between 2015 and 2016, GreenTech Malaysia set up three units – GreenTech Malaysia Alliances Sdn Bhd, GreenTech Catalyst Sdn Bhd and GreenTech IdeasLab Sdn Bhd — to further promote and drive the adoption of green technology and spur the economy through green initiatives.
Meanwhile, he said, to-date, GreenTech Malaysia has secured 12 ministries and agencies in the Government Green Procurement programme under the Green Procurement Flagship.
He said the corporation targeted to have all ministries participate in the programme by this year, collectively achieving 20 per cent of green procurement by 2020.
“This is because the public sector represents about 15 per cent of the country’s gross domestic product.
“We expect this would have a trickling-down effect to influence the private sector, creating supply and demand in the local market,” he said.
GreenTech Malaysia is a not-for-profit organistion under the purview of the Ministry of Energy, Green Technology and Water Malaysia.
It aims to develop and promote green technology as a strategic engine for socio-economic growth in Malaysia.
IGEM 2017 convenes businesses, leaders and experts
One key event organised by GreenTech in positioning Malaysia as the hub of all green technology is the International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM).
Organised by the Ministry of Energy, Green Technology and Water (KeTTHA) and co-organised by GreenTech Malaysia and Malaysian Exhibition Services (MES), IGEM is the region’s largest green technology business and innovation platform set to attract key industry players from around the globe to showcase the latest breakthroughs in green technology.
On an international level, the IGEM will continue to be one of the key platforms to spur the green economy, having successfully generated business leads of over RM10 billion in the past six years.
This year, IGEM will take place from October 11 to 13, targetting RM1.6 billion in business leads, 320 exhibitors and 30,000 visitors from over 20 countries.
Over and above this, GreenTech Malaysia will also be managing the Malaysia Pavilion, on behalf of the Malaysian Government and the Ministry of Energy, Green Technology and Water, for the upcoming International Specialized Exhibition EXPO-2017, themed ‘Future Energy’, to be held at Astana, Kazakhstan from 10th June for a period of three months.
This platform is set to further showcase Malaysia’s best developments alongside 117 countries in the area of green technology and sustainability to an estimated audience of over five million visitors.
Commenting on the pivotal role of IGEM in spurring international trade, Acting Deputy Minister of Energy, Green Technology & Water, Senator Datuk Seri SK Devamany, said, “The Malaysian government is strongly committed to contributing to the global green agenda and organising IGEM for the eight consecutive year is one such effort in that direction.
“IGEM continues to cement Malaysia’s position as a centre for green technology and boasts an impressive track-record of generating business leads that have catapulted investment in the green sector.”
“Driven by the rapid growth of Asean’s green industries, IGEM is well-positioned to enable businesses to tap into the immense potential. On behalf of KeTTHA, I urge businesses and green entrepreneurs to participate in IGEM to leverage on this great opportunity,” he added.
Since its inaugural edition in 2010, IGEM has generated over RM10 billion in business leads attracting over 330,000 visitors from 50 countries including delegates, dignitaries and companies from China, Japan, Korea, the European Union, the United States of America and ASEAN member countries. IGEM 2017 will showcase latest innovations and cutting-edge technologies in renewable energy, sustainable cities and green transport.
IGEM 2017 will focus on sustainable cities highlighting innovations in the five key sectors of green technology, encompassing Green Energy, Green Transport, Green Building, Waste Technology & Management and Water Technology & Management with a dedicated Solar Energy Zone, Green Transport Showcase and Green Building Hub.
Commenting on participation for IGEM 2017 thus far, Datuk Seri SK Devamany said, “Stemming from its strong track-record, IGEM 2017 has already received very promising response from both loyal and first-time exhibitors.
Today we have leading green nations as well as automotive and solar industry leaders signing up for IGEM 2017.”
Currently, IGEM 2017 has a confirmed participation from Japan External Trade Organization (JETRO) dan Taiwan External Trade Development Council (TAITRA) for international pavilions. While ABB Malaysia, Atlantic Blue (Solarvest), Gading Kencana, Hanwha Q-Cell, Itramas Manufacturing, Malaysia Timber Certification Council (MTCC), Pekat Engineering and Sabah State Government have all signed-up as exhibitors.
IGEM 2017 will continue to feature the highly popular business matching programmes that have been integral to forging business partnerships during past editions.
Returning partners include Malaysian Investment Development Authority (MIDA), Malaysia External Trade Development Corporation (MATRADE) and Malaysian Industry-Government Group for High Technology (MIGHT).