Malaysia launches more funding programs for green tech to achieve net zero target

Malaysia has increased its funding programmes and boosted tax incentives mechanism for enhancing green technology.

It comes following the government’s committment to achieve its goal of net zero greenhouse gas emissions by 2050.

For the budget of 2023, the government is considering extending the period to apply for the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) by the end of 2025, a local report stated. It has further proposed to extend the tax allowance and exemptions from three years to five years.

It has been informed that the GITE is available for green technology service providers listed under the MyHIJAU directory. These companies could get 70% income tax exemptions.

Meanwhile, the government is also improving the Green Technology Financing Scheme (GTFS). It has planned to increase the guaranteed value to RM3 billion up to 2025.

As per the local report, the government is also pushing government-linked companies (GLCs) and government-linked investment companies (GLICs) to join hands on its sustainability agenda.

Similarly, Tenaga Nasional Bhd has accelerated installion of rooftop solar panels to support the government’s sustainability agenda. It will further provide EV-charging facilities with an investment of RM165 million until 2025, the report mentioned.

During the budget presentation, Minister of Finance Tengku Datuk Seri Zafrul Abdul Aziz informed that the government has planned to introduce carbon tax, and “will be examining the feasibility of setting up a carbon pricing mechanism.”