KUCHING: Sarawak’s push toward net zero is emerging as one of the most credible in ASEAN, combining the state’s hydropower strength with consistent policies.
According to Maybank’s Group Global Banking Head of ESG Strategy and Solutions Ranita Abdullah, Sarawak leads in Malaysia and much of ASEAN in energy-transition readiness because of its natural resources, consistent planning and strong policy direction.
She noted that the state’s commitment to achieve net zero emissions by 2050 and the launch of the Sarawak Energy Transition Policy (SETP) reflects how seriously it treats long-term climate and investment goals.
“In Malaysia, Sarawak is the strongest overall in terms of readiness to reach net zero by 2050.
“It is underpinned by real assets such as hydropower, gas and forest cover, and guided by pragmatic, consistent policies,” she told Sarawak Tribune.
She said Sarawak’s renewable resources supply about 5.7 gigawatts of electricity capacity, with hydropower contributing roughly 62 per cent.
The state’s long-term investment in hydropower, she explained, now provides both energy security and export potential.
“These investments made two decades ago are paying off. The surplus renewable power can be exported while supporting frontier ventures such as green hydrogen.”
Building on that point, Ranita said these early decisions are now strengthening investor confidence because Sarawak can demonstrate proven assets and predictable returns from renewable energy.
Sarawak’s approach, she added, is reinforced by its detailed policy framework, including the Post-Covid-19 Development Strategy (PCDS 2030), the Sarawak Energy Transition Policy (SETP), the Greenhouse Gas (GHG) Ordinance and a biodiversity policy statement that safeguards natural ecosystems.
“In terms of policy clarity and vision, Sarawak has it. You have moved from a broad vision to a set of enabling policies that create a predictable environment for investors,” she said.
She also pointed to Sarawak’s regional ambitions through cross-border grid connections with West Kalimantan, Sabah, Brunei and the Philippines, as well as its participation in the ASEAN Power Grid initiative.
“These connections reinforce Sarawak’s position as a regional energy player,” she said.
Ranita observed that Sarawak has transformed from a fossil-fuel exporter to an energy-transition player with measurable climate targets and investor-friendly policies.
“The state has slightly outpaced ASEAN’s overall transition-finance readiness,” she said.
She explained that this advantage comes from the state’s ability to align policy, infrastructure and investor interest faster than many of its regional peers, giving Sarawak a head start in attracting international interest.
On how other states could replicate Sarawak’s success, she advised that the key is to create clear blueprints and maintain consistent government support.
“The overall recipe for success is the same everywhere. You need strong leadership, regulatory clarity and the confidence of investors.”
She also pointed out that Maybank has already supported Sarawak’s energy aspirations through sukuk issuances for, among others, Petros, Sarawak Energy and Sarawak Hydro, with a combined programme size of RM41.5 billion.
Maybank itself, she said, has mobilised close to RM140 billion from 2021 to mid-2025, surpassing its target of RM80 billion in sustainable finance by 2025 as part of its regional ESG strategy, making Sarawak a major focus of its clean-energy portfolio.
Highlighting the bank’s continued interest, Ranita stressed that Maybank is eager to do more.
“Maybank is hungry to do more deals in Sarawak.
“The state’s energy transition is not just aspirational; it is achievable. With robust policies, proven assets and regional integration, Sarawak can become the battery of ASEAN.”
