YOG INFRA Q4 2024 insight series
MALAYSIA is moving towards its renewable energy targets of 31 % by 2025 and 40 % by 2035, primarily aiming for large scale solar projects coupled with clean energy transiton in terms of green hydrogen and increased use of e-vehicles. There are significant investments being made by international developers predominantly through JVs with local Malaysian counterparts. We also see a growing focus on technical innovation through hybrid hydro-solar plants and more players entering the hydrogen production/ export sub-sectors.
Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.
OCTOBER 2024
MITSUBISHI POWER EYES HYDROGEN POWER PROJECTS TO SUPPORT GREEN ENERGY IN MALAYSIA
Mitsubishi Power Limited, a subsidiary of Japan-based Mitsubishi Heavy Industries Group, has been targeting to develop hydrogen power projects in Malaysia to support the country’s shift to green energy. The replacement of older power plants with efficient technologies like gas turbine combined cycle (GTCC) systems will be doubled with renewable energy (RE).
Mitsubishi Power is working with local RE providers and partners, particularly in Sarawak, to integrate hydrogen production with renewable resources for power generation or export. The company is also advancing hydrogen combustion technology at its Takasago Hydrogen Park in Japan, with plans for full hydrogen integration in the future.
MOU SIGNED TO DEVELOP 1.5 GW OF SOLAR PV PROJECTS IN MALAYSIA
Huasun Energy a Chinese company has signed a memorandum of understanding (MoU) with ITRAMAS Corporation to develop 1.5 GW of solar photovoltaic (PV) projects in Malaysia. The project is expected to commence in 2025.
Huasun will supply 700W+ high-efficiency heterojunction (HJT) solar modules to ITRAMAS for large-scale projects. This partnership is in line with Malaysia’s National Energy Transition Roadmap (NETR), which targets 70 % renewable energy by 2050, with solar energy playing a key role. ITRAMAS currently operates over 200 MW of solar power and has 1.5 GW in development, meanwhile, Huasun is the world’s largest HJT manufacturer, reinforcing Malaysia’s solar supply chain and energy transition goals.
MOT ALLOCATES RM 750 MN TO ENHANCE PUBLIC TRANSPORT IN MALAYSIA
The Ministry of Transport (MOT) in Malaysia has been allocated RM 750 Mn (USD 167.87 Mn) under Budget 2025 to strengthen public transport services, aiming to reduce living costs and improve service quality. Of this, 44 % will be directed towards subsidies for rail and air services, ensuring accessibility for both urban and rural areas. Key initiatives include the RM 50 (USD 11.20) and Mutiara Pas subsidies, benefiting over 180,000 users in the Klang Valley and the north, as well as a RM 22 Mn (USD 4.92 Mn) Tren Tidak Ekonomik subsidy to improve connectivity in underserved regions.
Additionally, RM 200 Mn (USD 44.75 Mn) is set aside for rural air service subsidies, supporting routes in Sabah and Sarawak, which will aid over 800,000 residents. Other efforts include free travel passes for students and disabled individuals on the KTM Komuter, as well as RM 48 Mn (USD 10.74 Mn) for Flysiswa flight and festive season ticket subsidies, expected to benefit 160,000 people in Sabah, Sarawak, and Labuan.
PLANS ANNOUNCED TO DOUBLE EV CHARGING STATIONS IN MALAYSIA TO 4,000 BY 2025
The Government of Malaysia has announced plans to double its electric vehicle (EV) charging stations to 4,000 by 2025, supporting its goal to use EVs as official vehicles during its ASEAN chairmanship. This expansion aligns with the country’s ambition to reduce carbon emissions by enhancing EV accessibility and promoting sustainable transportation.
With a target to rea ch 40% renewable energy (RE) in its national energy mix by 2030, up from the current 20%, the government is working closely with the private sector. Additionally, the government is also supporting partnerships are key to achieving Malaysia’s climate goals and enhancing energy security.
NOVEMBER 2024
STMICROELECTRONICS AND ENGIE SIGN 21-YEAR PPAs FOR SOLAR POWER IN MALAYSIA
STMicroelectronics and Engie have entered a 21-year Power Purchase Agreement (PPA) to support STMicroelectronics’ carbon neutrality goals in Malaysia. The agreement will deliver 50 GWh of energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia, operated by BKH Solar Sdn Bhd—a partnership between Engie and Conextone Energy.
The project is expected to commence in 2025, this agreement marks STMicroelectronics’ first PPA in Asia and supports its goal to achieve 100 % renewable energy (RE) by 2027. Engie has also secured multiple recent PPAs in the U.S.
MASDAR, SARAWAK ENERGY, AND GENTARI PLAN FLOATING SOLAR STUDY IN MALAYSIA
UAE-based Masdar, Sarawak Energy and Gentari, have signed a joint agreement to study the feasibility of a large floating solar power plant on Malaysia’s Murum hydroelectric reservoir. This project aims to boost Sarawak’s renewable energy (RE) capacity and support Malaysia’s clean energy goals. The study will assess technical, environmental, and economic factors to confirm viability.
This initiative aligns with Malaysia’s RE targets of 31 % by 2025 and 40 % by 2035 and highlights floating Solar’s land-use efficiency and potential benefits for hydroelectric systems.
HYDREXIA PARTNERS TO ENHANCE HYDROGEN INFRASTRUCTURE IN MALAYSIA
Hydrexia SDN. BHD, a wholly owned subsidiary of Hydrexia Holding Limited (Hydrexia), a global integrated hydrogen solution provider, had signed a Memorandum of Understanding (MOU) with Worldwide Energy Development SDN BHD (WEDSB), a renewable energy subsidiary of Worldwide Holding Berhad in Malaysia, to jointly develop the hydrogen market in Malaysia.
Under the framework of the MOU, Hydrexia and WEDSB will collaborate to facilitate sustainable energy development plan by the state government of Selangor under the initiative of Selangor Hydrogen Oriented Resources (SHORE). Both companies will leverage their respective technology, market resources, and capabilities to help advance the plan. The SHORE initiative will be rolled out in four phases with completion expected by 2040.
MOU SIGNED TO DEVELOP 10 GW GREEN HYDROGEN FACILITY IN MALAYSIA
LBS Bina Group Bhd, Invest Sabah Bhd, Sabah Forestry Development Authority (SAFODA), and Midwest Green have signed a memorandum of understanding (MoU) to develop a green hydrogen production facility in Kota Marudu, Sabah, Malaysia. The facility, powered by solar and wind energy, is expected to produce 10 GW of power, generating over 250,000 tonnes of green hydrogen annually. The site’s high solar irradiance and consistent wind speeds, along with proximity to seaports, make it an ideal location for green energy generation and export logistics.
LBS will collaborate with local and international stakeholders to conduct land surveys and site inspections. This project is part of a broader initiative to establish a green industrial park and further position Sabah as a key player in the renewable energy (RE) sector.
EDGEPOINT INFRASTRUCTURE AND CELCOMDIGI PARTNER TO ENHANCE CONNECTIVITY IN MALAYSIA
EdgePoint Towers, a subsidiary of EdgePoint Infrastructure, has partnered with CelcomDigi to extend the reach of CelcomDigi’s network across Malaysia. This collaboration aims to optimise costs, expand connectivity, and enhance coverage, particularly through advanced solutions such as in-building systems and small cells. The partnership is expected to facilitate seamless connectivity for both consumers and businesses and support Malaysia’s digital transformation towards 5G and AI technologies.
EdgePoint Towers and CelcomDigi signed a memorandum of agreement (MoA) to focus on network synergies and infrastructure development. The move also underscores the importance of developing future-ready infrastructure to meet growing data demands. As part of the agreement, both parties aim to contribute to Malaysia’s goal of becoming a regional leader in 5G connectivity.
AIRTRUNK AND PEKAT SOLAR TO DEVELOP ROOFTOP SOLAR AT ITS JOHOR BAHRU DATA CENTRE
AirTrunk a Singapore based company has signed an agreement with Pekat Solar to develop rooftop solar at its Johor Bahru (JHB1) campus. The project is AirTrunk's first onsite renewable generation initiative in the region, further advancing the company's progress towards its Net Zero by 2030 target.
The solar generation system at JHB1 will deliver 1 megawatt (MW) of renewable energy and is in addition to AirTrunk's larger renewable virtual power purchase agreement (VPPA), the first for a data centre in Malaysia under Malaysia's Corporate green Power Programme. Under the VPPA, AirTrunk as the offtaker will procure renewable energy from the 30MW solar farm that ib vogt is currently developing.
AirTrunk JHB1, which officially opened in July, incorporates energy efficiency throughout the data centre design including a design power usage effectiveness (PUE) of 1.15 and the first direct-to-chip liquid cooling technology, deployed alongside traditional indirect evaporative cooling (IEC) and high-density racks. The liquid cooling innovation reduces energy consumption by up to 23 %, enabling JHB1 to be AI-ready.
AirTrunk is delivering shared value in Malaysia, enabling the growth of the digital economy, driving employment opportunities, supporting our communities and stewarding the sustainable use of water and energy. Along with the renewable VPPA, and reduced energy consumption through liquid cooling, the rooftop solar project supports the energy transition as we continue to grow in Malaysia. The project will be installed by Pekat Solar, one of Malaysia's leading solar contractors in delivering renewable energy solutions across the country.
SHELL MALAYSIA, PROGRESSTURE POWER IN DEAL TO SET UP SOLAR ROOFS AT 600 STATIONS NATIONWIDE
Shell Malaysia Ltd and Progressture Power Sdn Bhd have partnered to install up to 20-megawatt peak (MWp) of solar capacity on the roofs of over 600 retail stations nationwide. This initiative reinforces Shell's commitment to powering Malaysians' daily journeys with clean energy and achieving net-zero emissions by 2050.
Shell Malaysia outlined its plans as part of the Powering Progress strategy, which aims to reduce Scopes 1 and 2 emissions by 50 % by 2030, using 2016 as the baseline year. The solar installation is expected to generate up to 25,550 megawatt-hour (MWh) of clean energy annually, enough to power up to 7,392 households.
This transformation supports Malaysia’s ambitious climate goals, including a 45 % reduction in carbon intensity against gross domestic product (GDP) by 2030 compared to 2005 levels. Through this partnership, Shell aims to accelerate its transition to clean energy while contributing to Malaysia’s national emissions reduction targets.
DECEMBER 2024
THE GOVERNMENT OF MALAYSIA AIMS FOR 2 MN TONNES OF HYDROGEN PRODUCTION BY 2030
The Government of Malaysia has announced plans to produce 2 Mn tonnes of hydrogen annually by 2030, with the goal of scaling up to 16 Mn tonnes by 2050 under the Emission Driven Scenario (EDS). This initiative, part of the Hydrogen Economy and Technology Roadmap (HETR), is expected to generate significant revenue, with projections reaching RM 905 Bn (USD 202.75 Bn) by 2050. The global green hydrogen market is set to grow to USD 189.19 Bn by 2050, and Malaysia aims to capture 2 % of this market.
Malaysia will phase out grey hydrogen and focus on green hydrogen, with blue hydrogen serving as a transitional fuel. It is also exploring subsidies for hydrogen-related projects and aims to support demonstration projects in transportation, power generation, and industrial processes to accelerate hydrogen adoption.
PRO-NET AND EVC LAUNCH EV CHARGING INITIATIVE IN MALAYSIA
PRO-NET, a subsidiary of Proton New Energy Technology, has partnered with EV Connection (EVC) to launch the PRONET-EVC Condominium EV Charging Infrastructure Program in Malaysia. This initiative aims to equip high-rise residential buildings in Malaysia with electric vehicle (EV) charging stations. The partnership also involves JomCharge, enhancing the availability and accessibility of EV chargers for condominium residents.
As per the scope of the memorandum of understanding (MOU), the program is set to support Malaysia’s push for greater EV adoption by addressing the infrastructure challenges of urban living. This aligns with broader efforts to expand EV accessibility across Asia. The initiative complements other regional and global advancements in EV charging, reflecting a growing commitment to sustainable mobility solutions.
INSTALLATION WORKS TO COMMENCE ON THE RTS LINK PROJECT BY 2024
Rapid Transit System Operations (RTSO) will begin installation of the rail systems after being granted access to the civil structures Rapid Transit System (RTS) Link project, connecting Malaysia and Singapore by the end of 2024. This includes trackwork and the installation of signalling, communications, and power systems. The civil works in Malaysia, which cover the maintenance depot, Bukit Chagar station, and viaducts, are about 93 % complete. Work will continue in 2025 with final touch-ups, including fit-out and façade installations.
In Singapore, civil works are also advancing, with over 80 % of the infrastructure completed. The marine and land viaducts are near completion, and RTSO will soon gain access to the infrastructure to begin installation. The remaining tasks include architectural work, roadworks, electrical systems, and immigration gates. In 2025, work will begin to connect the RTS Link with the existing Mass Rapid Transit (MRT) network at Woodlands North station, enabling seamless travel when the service starts in 2026.
A key feature of the RTS Link project, an iconic viaduct near the marine span, has been completed. The viaduct depicts two hands clasping, symbolising the strong partnership and ties between Malaysia and Singapore.
FOUNDER GROUP TO BUILD 100 MW SOLAR FARM IN MALAYSIA
China-based Founder Group Limited has secured a conditional letter of award to construct a 100 MW solar farm in Tanjung Malim, Malaysia. Valued at USD 68 Mn, the project will supply power in Enstek, near Kuala Lumpur.
Founder Group will lead the engineering, procurement, and construction (EPC) of the project, with Hexatoff Group Sdn Bhd providing turnkey solutions. The initiative aligns with Malaysia’s goal to increase renewable energy to 40 % of its electricity mix by 2035 and 70 % by 2050. As of 2023, Malaysia had installed 1,933 MW of solar capacity, with ongoing efforts like the fifth round of the Large-Scale Solar tender to drive further progress.
PARTNERS TO DEVELOP MALAYSIA’S LARGEST HYBRID HYDRO-FLOATING SOLAR PLANT
Cypark Resources Bhd and Terengganu Incorporation Sdn Bhd have partnered to create a 500 MW Hybrid Hydro Floating Solar (HHFS) plant at Tasik Kenyir, Terengganu, Malaysia. This collaboration, formalised through a head of agreement (HOA), highlights Malaysia’s push toward renewable energy (RE). TNB Power Generation Sdn Bhd will oversee the design, construction, and operation of the plant.
Scheduled to begin in 2025, the project will combine hydropower and floating solar photovoltaic technologies. The project aligns with the UN Sustainable Development Goals, promoting clean energy (SDG7) and responsible consumption (SDG12). With a vast water surface of 370 square km, Tasik Kenyir offers significant potential for energy generation and storage, enhancing Malaysia’s grid system.
GLOBAL TENDER LAUNCHED FOR PENANG LRT
The Penang Light Rail Transit (LRT) Mutiara Line project has officially opened for tender with an allocation of RM 10 Bn (USD 2.23 Bn) for its construction and maintenance. The Mass Rapid Transit Corporation (MRT Corp) is seeking both local and international contractors for the role of turnkey contractor, which will include engineering, procurement, construction, and maintenance (EPCM). Bidders can form joint ventures, with foreign participation capped at 49 %, and must demonstrate experience in delivering large-scale rail projects.
The LRT project, which spans 29 km with up to 20 stations, aims to enhance connectivity across Penang Island and the mainland. Segment 1, linking Silicon Island to Komtar, has already been awarded to the SRS Consortium. The tender process is open until April 2025, with strict eligibility criteria, including a proven track record in railway system integration and financial stability.
OCK GROUP EXPANDS PORTFOLIO WITH 116 MW SOLAR PARK IN MALAYSIA
OCK Group Bhd has signed a conditional agreement to invest in a 116 MW solar project in Kedah, Malaysia, with an investment value of RM 350 Mn (USD 78.32 Mn). The deal involves OCK acquiring a stake in Solarpack Asia Sdn Bhd (SPK Asia), a subsidiary of Spain-based Zelestra. SPK Asia holds a 49 % interest in Solarpack Suria Sungai Petani Sdn Bhd, the project’s vehicle. OCK will also assume a RM 14.2 Mn (3.17 Mn) loan from Zelestra as part of the transaction.
The investment aligns with OCK’s strategy to grow its independent power producer (IPP) business, complementing its ownership of 29 solar plants in Malaysia. The Sungai Petani solar park, operational since March 2022, supplies electricity to Tenaga Nasional Berhad under a 21-year power purchase agreement (PPA). This project was one of the successful bids in Malaysia’s third large-scale solar programme (LSS3) in 2022, reinforcing OCK’s position in the green energy sector.
KLIA TO EXPAND WITH NEW RUNWAY AND TERMINALS
Malaysia Airports Holdings Bhd (MAHB) has announced plans to expand at Kuala Lumpur International Airport (KLIA) to accommodate increasing passenger traffic. The long-term plans include adding a fourth runway and new terminals, with the goal of boosting the capacity of KLIA’s Terminal 1 (T1) from 30 Mn to 59 Mn passengers annually, and Terminal 2 (T2) from 45 Mn to 67 Mn passengers.
Short-term measures to improve airport operations include the introduction of self-check-in kiosks and 20 additional immigration auto gates. The long-term development also includes a Private Premium Terminal (PPT) for high-status passengers, expected to begin in 2025, and a Haj and Umrah Terminal, designed to accommodate 5 Mn passengers annually. This terminal aims to streamline the immigration process for Muslim pilgrims travelling to Saudi Arabia, pending approval from the Saudi government for pre-clearance facilities at KLIA.
NGC ENERGY LAUNCHES SOLAR PV PROGRAM IN MALAYSIA
National Gas Company (NGC Energy) has introduced its Solar photovoltaic (PV) System Program to promote renewable energy (RE) adoption in the country. This initiative aligns with Malaysia’s National Energy Transition Roadmap, which aims to boost solar energy capacity to 58 % by 2050. The program is designed to provide sustainable energy solutions for households and businesses.
The Solar PV System Program is expected to reduce carbon emissions by 358 metric tons annually by 2024, showcasing its environmental impact. Financially, the program offers significant savings, with residential users potentially saving RM3,000 to RM12,000 annually, supported by government incentives like the Green Investment Tax Allowance (GITA). NGC Energy also supports sustainability through internal initiatives, equipping employees’ homes with solar panels. The program includes consultation, installation, maintenance, and warranties, ensuring long-term reliability for customers
List of key transactions - Malaysia Q4 2024
Source: YOG INFRA analysis
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