KUALA LUMPUR: Malaysia is set to maximise the potential of its green industry and renewable energy sector in 2020 to attain its objective of becoming Southeast Asia’s green technology hub in the near future.

The commitment was spelt out by Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin who is determined to drive Malaysia to become a leader in the industry.

“We have done a lot about the renewable energy and green industry because we have a very clear target to achieve,” she said.

“(By achieving the target), then we can be the leader and not merely follow other people (countries) in this (green industry),” she told Bernama in an exclusive interview recently.

Yeo said to navigate the industry, the government must be progressive and set policies before other countries do so as to ensure that Malaysian companies are in the forefront.

In line with the vision, the government has among others adopted proactive initiatives including improving the Net Energy Metering (NEM) using one-to-one offset basis, and Solar Leasing Policy through Supply Agreement of Renewable Energy (SARE).

The implementation of NEM 2.0 has not only allowed building owners to cut down their electricity bills but also reduced carbon emission, and it is expected to encourage rooftop solar energy generation.

The NEM scheme is a solar photovoltaic (PV) initiative by the ministry to encourage Malaysia’s renewable energy uptake.

Meanwhile, the Solar Leasing Policy has enabled solar service companies to offer zero up-front cost packages, providing opportunities for consumers to benefit from the NEM2.0 policy.

The renewable energy policies also had a further boost in Budget 2020 through the Green Investment Tax Allowance (GITA), and Green Income Tax Exemption (GITE).

Tax incentives will also be introduced to companies implementing solar leasing activities with income tax exemption of 70 percent for up to 10 years.

The initiatives proved that the government’s vision is in line with the global prospect on renewable energy as according to Deloitte analysis for 2020 Renewable Energy Industry Outlook, the renewable energy industry is primed to enter a new phase of growth in 2020.

This is in line with the Shared Prosperity Vision 2030 (WKB 2030) which also stresses on renewable energy and green economy as two of the 15 proposed Key Economic Growth Activities. — Bernama