PUTRAJAYA: Malaysia has set a goal to raise the country's annual average gross domestic product (GDP) by RM13 billion with the implementation of the National Energy Policy 2022–2040.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the policy, which includes an 18-year plan to transform the country into a low-carbon nation, will also help to create 207,000 employment opportunities by 2040.

Backed by 12 strategies and 31 action plans, the policy would also open a new chapter in the country's energy sector, he said.

"The policy is a 'living document' that will be updated every three years to ensure that it keeps up with technological advancement, socio-economic growth and the balance of the current energy trilemma," he told reporters at the launch of National Energy Policy 2022–2040 here, today.  

Ismail Sabri said the policy would unlock economic benefits that would contribute to strong economic recovery and hasten the country's progress to rebound from the Covid-19 pandemic.

He said the government would channel new investments into emerging energy sector areas and catalyse the green economy to spur enduring GDP growth and job creation through the policy.

The energy sector is expected to attract new opportunities, such as low carbon mobility through the use of electric vehicles (EVs), as well as the generation and storage of new energy sources such as hydrogen and bio-based energy," he said.

In implementing the policy, priority will be given to local energy companies to maximise the country's economic opportunities.

In addition, energy self-sufficiency will increase from 48 per cent to 72 per cent as a result of optimal use of internal resources.

The National Energy Policy 2022–2040 is expected to attract RM9.2 billion in investments a year from inside and outside the country, for the energy sector.

Ismail Sabri said Malaysia aspired to become a low-carbon nation by 2040.

Meanwhile, the prime minister said subsidies for petrol, diesel and liquefied petroleum gas (LPG) this year are projected to reach RM37.3 billion this year addinbg that the country was also set to spend RM5.8 billion in subsidies for electricity.

He said the government was also providing up to RM6 billion in financing guarantee to Tenaga Nasional Bhd to ensure that its operations were not affected by the Covid-19 pandemic and uncertainties in global politics.

"Despite these challenges, I would like to give an assurance that the people will continue to have sufficient energy at affordable prices," he said.