KUCHING: Malaysia’s ability to attract long-term renewable energy investments depends on clear policies, strong legal frameworks, technical expertise and political stability, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah said investor confidence hinges on transparent policies and business models.
“Number one, there has to be a clear policy. Number two, you have to have not only policy, but also a clear direction of the business model,” he said during his plenary session at the ‘Sustainability and Renewable Energy Forum 4.0’ (SAREF 4.0), powered by Sarawak Energy at Borneo Convention Centre Kuching here today.
He pointed to the recent large-scale solar project in Peninsular Malaysia as an example of how well-structured policies can attract foreign investors.
“For example, when we opened up our large-scale solar recently, we announced the successful bidders for 2,000 megawatts. The majority are investors from abroad.
“Because number one, you have a clear policy. Number two, legislation and the legal perspective are clear. The business model, whereby the tariff is there to cover whatever investment they are looking at – and that has to be in place,” he explained.
Fadillah added that Malaysia must also provide the right talent pool and supporting ecosystem.
“We have to have the people, the expertise, the technical know-how, as well as the financial and legal systems in place. That will be the key for us to attract investors,” he said.
He stressed that political stability remains fundamental to sustaining investor confidence.
“Of course, that is fundamental to any country. If you don’t have stability, definitely people will not be coming. That’s why the state of Sarawak has attracted so many investors right now,” he said.
