It will then permit Malaysia to harness its present strengths in O&G and different industries to ship the right profitability to the market
by AUFA MARDHIAH / pic BERNAMA
ENERGY transition is a essential part for Malaysia’s economic system to advance to the subsequent stage, Economic system Minister Mohd Rafizi Ramli (image) stated.
He added that vitality transition is an obstacle to financial diversification as it’s a part of making an attempt to combine vitality transition as a core agenda within the economic system.
By way of coverage, Malaysia has launched the nationwide vitality coverage final 12 months which units the exploration for the nation in the direction of a cleaner vitality and inexperienced economic system.
Rafizi added that the federal government is specializing in the roll-out of the Nationwide Vitality Transition roadmap within the subsequent six months as introduced by Prime Minister (PM) Datuk Seri Anwar Ibrahim throughout the opening ceremony of the Vitality Asia 2023 convention.
“The roadmap will set the pathways and provides readability about how we will carry every part collectively — all the best way from the legislative and regulatory framework to how the personal sector can take part,” he stated throughout a session on the convention just lately.
Rafizi stated there’s a appropriate understanding that transitions should strike a steadiness available in the market for sustainability with affordability and availability within the international context.
In Malaysia, he stated it’s simpler to persuade the inhabitants of the necessity for vitality transition as a result of local weather change is actual and is going on therefore, the general public’s realisation in the direction of the significance of vitality transition has to occur inside the prices of creating certain that Malaysia’s infrastructure is climate-proof sooner or later.
On that, he stated the federal government is specializing in unwinding Malaysia’s advanced system, as an example, the blanket gas subsidy which has been a characteristic of the Malaysian economic system for many years.
“Making an attempt to slowly carry everybody on board to section out the blanket subsidy system in the direction of a focused subsidy system will not be a simple job,” he stated.
However, he additionally famous that it’s a problem to strike a steadiness between financing and functionality.
“In an economic system like Malaysia, the federal government has constructed and deliberate for a section down (section by section) transition to make sure applicable financing and financial coverage in place, in addition to applicable incentives for society to shift away from fossil fuels and in the direction of inexperienced vitality in levels,” he added.
Other than that, the transition ought to be certain that Malaysia can harness its present strengths in oil and gasoline (O&G), and different industries to ship the right profitability to the market to determine inexperienced economies and vitality transitions.
“On the finish of the day, the general public has to really feel the change in vitality transition. They should admire that we’re managing the local weather, however on the similar time, they have to be a part of that economic system.
“They should see how their life may very well be upgraded and have better entry to inexpensive electrical energy and energy sooner or later. Most significantly, they should really feel that the associated fee is justified,” he added.
Individually, in response to the PM’s comment that international transformation shouldn’t be dictated by sure international locations, Rafizi highlighted the need to acknowledge that totally different international locations are at totally different phases of growth.
“Whereas the web zero dedication is a worldwide aspiration, in addition to it being our dedication to attain it by 2050, we additionally should guarantee that it balances with our society’s wants in order that the transition doesn’t abruptly disrupt vitality provide.
“That’s the reason we should keep this confronted down strategy relatively than abrupt quitting of any specific fossil gas,” he stated.