By Jacqueline Chang
The call for sustainability and environmental responsibility has grown louder in recent years, with nations, industries, and individuals striving to reduce their carbon footprints.
However, going green often comes with a hefty price tag, and Malaysia is no exception.
In some cases, adopting environmentally friendly practices can increase costs, challenging the perception that sustainability automatically equates to savings.
In Malaysia, the impact of climate change is already affecting daily life, with food prices being one of the most visible consequences.
Studies show that droughts and floods, which have become more frequent due to climate change, reduce food supply and drive-up costs. Ironically, even the steps taken to combat climate change have contributed to rising prices, particularly in the food sector.
Food Production Costs on the Rise
The transition to renewable energy in ASEAN countries, while necessary for global development, has led to a 31 percent to 59 percent increase in food prices across the region. This increase is attributed to higher costs of energy, labour, and other essential inputs for food production and distribution.
For Malaysia, the situation is particularly challenging. The country has experienced a 2.1 percent increase in average temperature over the past decade, contributing to a 2.9 percent rise in food prices. With food accounting for 35 percent of basic living expenses for the average Malaysian, this trend poses a significant burden on households, especially lower-income families who spend a larger proportion of their income on food.
Looking ahead, the cost of food is projected to rise by 39 percent by 2050, coinciding with Malaysia’s goal of achieving net-zero emissions. In contrast, average household income is expected to increase by only 16.2 percent during the same period, widening the gap between income growth and living costs.
The Costs of Green Energy Transition
Transitioning to renewable energy is a cornerstone of Malaysia’s sustainability strategy, but it comes at a price. For businesses, the cost of installing solar panels can be substantial. For instance, a commercial setup requiring 500 kWp of solar panels might cost around RM2,100 per kWp, while larger installations, such as a 1 MWp system for industrial use, can cost upwards of RM1.8 million.
Similarly, the adoption of electric vehicles (EVs) faces several challenges. Malaysia currently has about 2,300 EV charging bays, which are insufficient to support widespread EV adoption. Additional barriers include the high cost of EV batteries, shortages of parts, and a lack of skilled professionals to service and maintain these vehicles. Furthermore, inconsistencies in EV charging standards and grid-related challenges complicate the creation of a robust EV ecosystem and increase costs.
Biodegradable Materials
The push for sustainable packaging has increased the use of biodegradable materials, which are often more expensive than conventional plastics. While advancements in production technology and higher demand are expected to reduce these costs over time, the current price difference remains a barrier for many businesses, particularly small and medium enterprises (SMEs).
For industries like food and beverage, which rely heavily on packaging, the shift to biodegradable materials can significantly impact operating costs. This creates a problem for businesses trying to balance environmental responsibility with financial viability.
Solutions
Despite the challenges, there are ways to mitigate the costs of going green. Foreign investment in food production has been identified as one potential solution.
ASEAN has become an increasingly important food source for nations in South Asia, Africa, and the Middle East, making it an attractive destination for investment. However, relying solely on foreign capital is risky. Strengthening domestic investment, particularly in research and development (R&D), is equally critical for Malaysia’s green transition.
Innovation holds the key to reducing costs and improving efficiency. Advancements in agricultural technology, such as precision farming, can increase yields and offset some of the additional costs associated with green practices. Similarly, enhancing the infrastructure for renewable energy and electric vehicles (EVs) can make these options more accessible and affordable in the long run.
For Malaysians, the sustainability journey will require sacrifices and difficult choices. Policymakers, businesses, and individuals must collaborate to ensure a balanced approach that minimises the financial burden while making meaningful progress in combating climate change.
The writer is an Academic Coordinator at the School of Foundation Studies cum Lecturer at the School of Business at Swinburne University of Technology Sarawak Campus
The views expressed here are those of the writer and do not necessarily represent the views of the Sarawak Tribune.
