PETALING JAYA: With the green economy having great potential to boost the country’s growth rate, the government is on the right track to foster the sector in this region, say experts.

Environmental Resources Management Sdn Bhd corporate sustainability and climate change consulting director for Malaysia and Brunei, Syed Fairul Al-Mashoor, said the new ventures in businesses and shift or potential expansion of the new value chain will “definitely help in our embarking on the new GDP journey”.

He cited the example of electric vehicles, which conventional car-makers and suppliers initially believed would cause a consumption deficit as EVs have less wear and tear.

“But looking at the greener side of it, there will be a shift in terms of the education system where the syllabus needs to be updated and relevant, and more demand on training and hiring to upskill the people within the ecosystem.

“This is merely the tip of what the green economy can offer. The growth of EVs is dependent on energy companies providing alternative fuels and making them more accessible to the market.

“This will motivate energy and transport companies to expand their businesses and grow other revenue streams, leading to the creation of new jobs and thus accelerating the economy’s circulation.

“This is just one example. Imagine other industries,” Syed Fairul said.

He agrees that there is a need to initiate a skilling, upskilling, and reskilling approach throughout the workforce to ensure the green economy grows seamlessly.

Centre for Market Education chief executive Dr Carmelo Ferlito lauded the focus on the green economy, noting that new investment opportunities are always welcome.

However, he cautioned that for the green economy to be sustainable in the long run, it needs to be market-driven instead of government-driven.

“If what is produced by the green economy is either demanded by the market or the green economy itself can generate its own demand, then we can expect this new frontier to bring benefits to the country in terms of value and job creation.

“If, instead, the green economy is sustained by government intervention with support either on the demand or supply side, then it will generate a bubble,” he said.

This bubble will then burst when the support, which he said is not sustainable, is withdrawn.

Hence, said Ferlito, the government should be focusing more on a general pro-investment ecosystem, which may eventually foster an environment for the green economy to flourish.

https://www.thestar.com.my/news/nation/2024/03/24/government-taking-the-right-green-steps-say-experts