Image credit: The Star
KUALA LUMPUR: In the next 10 years Malaysia requires RM60-90 billion to fund critical projects such as expanding public transport, strengthening grid infrastructure and upskilling the workforce, said Natural Resources and Environmental Sustainability Ministe Nik Nazmi Nik Ahmad.
“A crucial component will be a robust and adaptable grid to handle the increasing reliance on renewable energy sources. The estimated cost for grid development is likewise substantial, reaching RM180 billion by 2050, to accommodate Malaysia’s clean energy ambitions,” he said at the MoU signing ceremony between Bursa Malaysia and the UK government’s Mobilising Institutional Capital Through Listed Product Structures (Mobilist) programme today.
Bursa Malaysia has entered into a collaboration on Mobilist, with the aim to bolster investments supporting energy transition and advancing the United Nations’ Sustainable Development Goals (SDG) in Malaysia.
Nik Nazmi, who was present at the MoU signing, said developed countries must play their part in climate change and environmental degradation because they are wealthier and because they have benefitted as well as continue to benefit from the huge carbon sinks that exist in developing regions.
“Climate action will have little practical meaning if it is not linked with climate justice,” he added.
The UN Conference on Trade and Development estimates that there is a staggering US$4 trillion (RM21.5 trillion) annual funding gap for developing countries to achieve the SDG by 2030.
Nik Nazmi said countries such as Malaysia are seeking to be proactive and responsible and understand trust and credibility is crucial, including in climate action.
“And we believe our actions thus far warrant both from our counterparts in Western countries and the international community,” he added.
Furthermore, he said that considering the varying stages of decarbonisation technology development across countries, it is clear that progress relies heavily on alternative energy sources and strong regional and international collaboration.
Mobilist forms part of British Investment Partnerships. The programme focuses on activating public markets to catalyse new investment solutions and financial products that are scalable and replicable in supporting the SDG and net-zero transition in emerging markets and developing economies.
The programme is designed to connect ventures on critical sustainable projects with investors by enabling institutional capital to flow to organisations tackling development challenges and climate transition.
Mobilist offers equity capital to facilitate the listing of pioneering products, technical assistance throughout the listing journey, and policy and research support to enhance the environment for issuers, investors and intermediaries.
The total global commitment of Mobilist is £156 million (RM930 million).
The event was graced by Crown Prince of Pahang Prince Hassanal Shah and was also attended by British High Commissioner to Malaysia Ailsa Terry and Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.
Source: https://thesun.my/business/malaysia-requires-rm60-90b-in-next-10-years-to-fund-critical-projects-nik-nazmi-BD12335958