KUALA LUMPUR (Aug 19): Malaysia is targeting to attract up to RM300 billion of green investment by 2030, said the Ministry of Investment, Trade and Industry (Miti) on Monday.

The target might appear “aggressive” considering that Malaysia managed to only attract investments worth about RM40 billion from 2017 to 2023 into the sector, said Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz. However, the investments are necessary for the country’s sustainable future, he noted.

“It is important to achieve the investment of RM300 billion [by 2030], so that we can get to net zero by 2050," Zafrul said at a press conference on green investment strategy.

Meanwhile, the minister noted that most of the country’s green investment was contributed by the renewable energy (RE) and electrical vehicle (EV) sectors.

He added that RE accounted for about 60% of green investment up to 2019, while EVs contributed 58% from 2020 to 2023.

“So, our efforts need to focus not only on increasing green investment. We also need to ensure that green investment is directed into specific sectors, not just EVs and RE,” he said.

Miti seeking budgetary support for green transition

On the upcoming Budget 2025, which is scheduled to be tabled on Oct 18, Zafrul said that his ministry is seeking budgetary allocations to encourage businesses, particularly local companies and small and medium enterprises, to adopt greener practices.

“From the financial point of view, [we need support] towards helping companies to transition [to green practices], because this requires more costs,” he explained.

The Ministry of Finance in its pre-Budget 2025 statement said that it will continue to support energy transition efforts through a legislative framework that encourages investment while safeguarding the public interest.