More incentives are necessary to increase investments in the green technology industry to solve current difficulties in obtaining financial assistance for projects, says the Energy, Green Technology and Water Ministry.
Its minister Datuk Seri Peter Chin said green technology ventures are still rather unattractive investment prospects, despite the strength of the green movement around the world and this continues to be among the challenges for Malaysia going forward.
“Projects are generally financed through loans or grants, which are quite difficult and expensive to acquire at the moment, as a result of the levels of uncertainty associated with this industry.
“The challenges ahead can be overcome with the right incentives and with higher levels of commitments,” he said in the keynote address, “Towards a Green Malaysia: Challenges and Opportunities from Green Technology”, at the 14th Malaysia Strategic Outlook Conference 2012 here, today.
His speech was delivered by the Deputy Secretary General (Green Technology and Water), Hajjah Nor Aini Abdul Wahab.
The minister also said despite the government being committed to accelerating the adoption of green technologies and being in a very favourable situation to do so with the country’s vast natural resources, Malaysia did not have the capacity to attract financial investment.
He added that the industry needs the technological know-how that is necessary to move ahead in the designing sphere of things and more effective ways need to be found to attract more foreign investment for these sectors.
Chin said another challenge for green technology advancement in Malaysia was that business opportunities were still fairly limited.
“The number of component suppliers in the country is relatively small and this drives the maintenance and operations costs up, while the lack of knowledgeable personnel on equipment handling further complicates matters,” he added.
He said the country is strong in terms of its electronics sector and this was a big advantage as it offered the potential to utilise the position and enhance its impact in the renewable, green energy market too.
“Many international names invest in solar power here and our strong electronics industry is one of the major reasons,” he added.
Malaysia is the world’s third largest solar module manufacturer behind China and Germany.
