Malaysia accelerates its energy transition with a focus on private financing and grid readiness

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Highlights

Implementation of the National Energy Transition Roadmap is expected to add up to RM220 billion to GDP and create 310,000 high-paying green jobs.
This year’s Feed-in Tariff initiative awarded 42 renewable energy projects involving around RM4.3 billion in investment, while Tenaga Nasional Bhd is investing RM15 billion in modernizing the national grid.
Global liquidity for energy transition financing has reached a record annual level of around U.S.$2.4 trillion, signaling strong investor interest in renewable energy assets.

This article was translated from the original. Read the original version by our correspondent here.

Forum focuses on capital, policy and project execution

As reported by The Edge Malaysia, the main theme of The Edge Malaysia Renewable Energy Forum 2026 was the need to mobilize private capital and prepare the national grid to support more renewable energy. The forum, held at the KLGCC Convention Centre in Bukit Kiara on Oct 26, was co-organized by HSBC Bank Malaysia and Sime Darby Property, with 206 participants attending in person and nearly 120 more joining online.

Deputy Minister of Natural Resources and Environmental Sustainability Tuan Syed Ibrahim Syed Noh said the energy transition is often discussed in terms of technology, investment and emissions targets, but an equally important question is how Malaysia can sustain economic growth without harming the environment. He stressed that for a developing economy like Malaysia, the challenge is not simply to pursue cleaner energy, but to ensure the transition remains practical, affordable and inclusive.

He said public resources alone are insufficient to meet the scale of financing required, underscoring the need to mobilize private capital, attract foreign investment and broaden access to sustainable financing. Deputy Minister of Economy Datuk Seri Mohd Shahar Abdullah said the National Energy Transition Roadmap is expected to add up to RM220 billion to gross domestic product and create about 310,000 high-paying green jobs across engineering, construction, digital systems and finance.

Mohd Shahar said capital deployment is already underway, with this year’s Feed-in Tariff initiative alone awarding 42 projects that are expected to generate around RM4.3 billion in investment. He also highlighted Tenaga Nasional Bhd’s RM15 billion investment in modernizing the national grid, saying reliable clean electricity is vital to attracting domestic and foreign investment as energy-intensive industries continue to expand.

HSBC Bank Malaysia Chief Executive Officer Datuk Omar Siddiq said the top priority is to ensure capital reaches viable renewable energy projects as quickly as possible. He said global liquidity actively deployed for the energy transition has reached a record annual level of about U.S.$2.4 trillion, signaling investor interest in bankable, resilient assets that offer reasonable returns.

In our previous coverage of MIDA’s Renewable Energy Supply Chain Programme at IGEM 2026, we reported how 25 local manufacturing and service companies were matched with TNB units to explore commercial opportunities in the renewable energy ecosystem. The initiative highlights that the energy transition is not just about adding capacity, but also about building the capabilities of local vendors and strengthening the value chain—an important foundation as discussions now shift to mobilizing capital and executing large-scale projects.

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