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4.69.   Regarding biofuels, the blending of palm oil with petroleum diesel began with the B5 programme in 2011. (...) Phased implementation of the B20 programme (i.e. a mixture of 20% palm biodiesel with 80% petroleum diesel) began under the National Biofuel Policy in 2020, with the nationwide roll-out dependent on infrastructure readiness. The B30 programme is envisaged to be implemented by 2030, or earlier, according to the availability of pertinent technical data.[78] In addition, renewable hydrocarbon fuel or palm-based hydrotreated vegetable oil may be introduced in the future.
[78] Ministry of Plantation Industries and Commodities, Biofuel Industry. Viewed at: https://www.mpic.gov.my/mpi/en/biofuel-industry.

4.70.   (...)The total nationwide capacity of coal-fired generating plants (13,067 MW) was slightly higher than for those operated with natural gas (12,540 MW), but well ahead of hydropower (6,062 MW). (...)

4.71.   (...) A massive increase in solar power capacity is expected in coming years. (...)From 2030, when current coal-fired plant concessions end, power generation is expected to be fuelled by gas and renewables.

4.73.   (...)The targeting of renewables to account for significantly higher shares of Malaysia's energy supply is largely to be met through major expansion of solar power. (...)The Government thus launched the Malaysian Electricity to Attract Renewable Energy Investment (MEnTARI) programme. With the upward revision of the target, the Large Scale Solar by Malaysian Electricity Industry to Attract RE Investment (LSS@MEnTARI) was launched in 2020. Competitive bidding for large-scale solar photovoltaic (PV) plants was introduced in 2016. Tenders under the Second Large Scale Solar Bidding Cycle (LSS2) and Third Large Scale Solar Bidding Cycle (LSS3) were carried out in 2019. (...)

4.74.   (...) At the outset, the excess power sold by solar PV owners into the grid was priced lower than electricity consumed from the grid. (...)The NEM 3.0 programme[the Net Energy Metering 3.0 programme], introduced in 2020, allocates 500 MW of solar PV rooftop capacity through three sub-schemes: (i) 100 MW for residential systems under NEM Rakyat with a net metering tariff for 10 years; (ii) 100 MW for government ministries and public entities under NEM GoMEn with the same conditions as NEM Rakyat; and (iii) 300 MW under NEM Nova (net offset virtual aggregation) for commercial and industrial owners, whereby they will be able to sell excess power to the grid at market price or the system marginal price. (...)

4.75.   According to the International Renewable Energy Agency (IRENA), solar power represented 17% of the net capacity change in Malaysia's electricity sector in 2021.[81] However, the renewable energy capacity continues to be dominated by hydro/marine power (70%), followed by solar (20%) and bioenergy (10%). Non-renewable sources accounted for 84% of the 175,995 GWh of electricity generated in Malaysia in 2020, and hydro and marine power (15%) represented nearly all the electricity generated from renewable sources.
[81] Non-renewable energy accounted for 81% of the net capacity change. IRENA, Energy Profile –Malaysia. Viewed at: https://www.irena.org/IRENADocuments/Statistical_Profiles/Asia/Malaysia_Asia_RE_SP.pdf.

4.83.   (...)the National Automotive Policy(...) was reviewed in 2009 to create a more conducive environment for investment, and the 2014 version of the Policy focused on developing Malaysia into a hub for energy-efficient vehicles by 2020 with parameters such as fuel efficiency, the use of light materials, telematics, tooling, and component design. A National Emission Test Centre was established to measure the exhaust emission from passenger and light-duty vehicles for the purposes of vehicle type approval, conformity of production, and research and development activities. The testing focuses not only on chassis dyno where all parameters are controlled, but the facility also includes testing for real driving emissions, where equipment is installed to collect and read the exhaust emission from the vehicle during real driving on the road. (...)In the domestic market, the share of energy-efficient vehicles sold rose from 14% in 2014 to 82% in 2021.(...)

4.84.   (...) Improved fuel economy levels by 2025 should reduce carbon emissions from vehicles in Malaysia.[89]
[89] Among the measures contemplated, new manufacturing licences for the production of non energy efficient vehicles are not to be issued.

4.87.   The Government supports the propagation of electric vehicles (EV) to reduce carbon emissions with tax incentives for vehicle owners as well as manufacturers. The EV incentive package covers (i) full exemption of import duty, excise duty, and sales tax on locally assembled or completely knocked-down EVs for a period of four years (until 2025); (ii) full exemption of import duty and excise duty on the importation of completely built-up EVs for a period of two years (until 2023); (iii) individual income tax relief up to MYR 2,500 for installation, rental, and purchase costs including equipment hire-purchase or EV charging facility subscription fees; and (iv) road tax exemption up to 100% for EVs for a period of four years (until 2025). Additional incentives cover (i) an income tax exemption for investors in manufacturing/assembly of vehicles and critical components, i.e. the "Pioneer Status" incentive of 70% or 100% for a period of 5 or 10 years or the "investment tax allowance" of 60% or 100% for a period of 5 or 10 years; (ii) an income tax exemption for green technology services of 70% for a period of three years for EV charging stations, EV infrastructure repairs, EV maintenance, and EV installation; and (iii) green technology tax incentives for the purchase and use of green technology, i.e. the Green Investment Tax Allowance for the purchase of green technology equipment and assets and the Green Income Tax Exemption for green technology service providers.

Table 4.17 Services contribution to GDP, 2017-21
(MYR billion, %)
(…)
Utilities: Water, sewerage and waste management
MYR billion at constant 2015 prices: (2017)6.7, (2018)7.2,(2019)7.7,(2020[a])8.3,(2021[a])8.8
Percentage annual growth at constant 2015 prices: (2017)6.1, (2018) 6.7,(2019)7.7,(2020[a])7.3,(2021[a])6.1
(…)
[a] Estimate.