2025 Budget Wishlist: Green Energy Oil & Gas Telecommunications Laying the Foundation for Future Development

The 2025 fiscal budget will be a key moment for driving Malaysia's future development, covering multiple important areas such as green energy, oil & gas, and telecommunications.

The government is expected to prioritize renewable energy projects, especially under the framework of the National Energy Transition Roadmap (NETR), by expanding the Net Energy Metering (NEM) program and subsidy measures to further promote the widespread application of solar energy, especially among B40 households.

Meanwhile, the oil & gas outlook is also receiving attention. Due to oil price fluctuations, National Oil dividends are expected to decrease, likely to be below 32 billion ringgit, but the development of the Johor Bahru xinjingji Special Economic Zone (JS-SEZ) may bring new opportunities to the petrochemical sector.

Lastly, the 5G infrastructure in the telecommunications sector is also expected to be promoted. The government will prioritize accelerating network coverage in remote areas, reducing the digital divide, and ensuring that the people nationwide can share the benefits of the digital economy.

Solarvest Executive Director and CEO, Davis Chong Chun Shiong, expressed hope that the government can expand the Net Energy Metering and Self-Consumption concept (SELCO) program, remove capacity limits, allow larger-scale projects to connect to the grid, and promote the popularization of solar power generation.

This means that more solar photovoltaic installations will bring more job opportunities and help businesses achieve environmental, social, and governance (ESG) goals.

He also pointed out that the government can support the development of the solar supply chain, expand tax exemptions for solar photovoltaic components, power inverters, Battery Energy Storage Systems (BESS), and reinstate the Green Technology Financing Scheme (GTFS) to support solar energy projects.

Datuk Ir. Chow Pui Hee, Group Managing Director, pointed out that to address these cost pressures, the company plans to maintain operational efficiency by optimizing logistics, supply chain management, etc. They also hope the government can provide tax incentives for renewable energy projects, low-interest financing, and enhance labor skills to help businesses effectively tackle challenges.

In addition, the gradual enhancement of e-invoicing may require companies to invest more in digital tools to comply with requirements ensuring real-time reporting and integration of tax documents.

In terms of investment and incentive measures, Zhou Peiyi expects the 2025 budget to provide more green financing channels and tax incentives for renewable energy projects, allowing companies to maintain competitiveness and drive long-term business development while expanding investment scale.

Founder and CEO of Plus Xnergy Holdings, James Hon Chuah.

As one of the clean energy solution companies, Plus Xnergy Holdings Private Limited (PXH) hopes that the 2025 fiscal budget will formulate stronger and more flexible policies to promote the application of cecep solar energy in businesses and households.

Founder and CEO Ko Chuan Zhen recommends that the government expand tax incentives and green financing programs to attract more businesses, households, and industries to participate in renewable energy initiatives.

At the same time, he also urges the government to relax policy frameworks, such as expanding the Corporate Renewable Energy Supply Scheme (CRESS), currently applicable only to medium and high voltage demand companies, to low energy consumption enterprises, for the benefit of more companies.

Furthermore, he emphasizes that the solar power People's Award Levies Program (SolaRIS) provided to household users helps promote the popularization of solar energy. The key is how to expand it, as it directly affects the accessibility of solar energy for household users.

Deputy Chairman and Managing Director Dato’ Lai Keng Onn stated that the current direction of the country is to reduce reliance on fossil fuels by introducing bioenergy, waste conversion energy, etc., but the existing management is relatively scattered, and the global energy market is unstable, which poses a major obstacle to this transition.

He hopes that the government can help mitigate risks through measures such as price stability and diversification of the supply chain, and to ensure the success of energy transition, the government needs to establish a unified energy framework that combines energy goals, pricing mechanisms, and compensation mechanisms.

Lai Keng Onn also hopes that reforms will focus on promoting private sector involvement in electricity generation, especially in non-cecep solar energy sectors, to promote sustainable energy development in Malaysia.

Deputy Chairman and Executive Director of Steel Eagle, Dato' Sharman Michael, expressed hope that the government will continue to implement key policies such as the 2030 New Industrial Masterplan (NIMP2030) and the National Energy Transition Roadmap (NETR), laying the foundation for the company and sector’s sustainable growth.

In addition, by reducing taxes on investing in new equipment or expanding factories, it can not only increase job opportunities, but also drive substantial wage growth, especially advantageous for capital-intensive industries.

Regarding the investment and incentive measures in the 2025 fiscal budget, he expects the government to focus on equipment and new technologies, especially in terms of safety and reducing downtime.

Dato' Kee Chit Huei, the CEO, expressed that with the progress of energy transition, they hope the government can provide more support to help the company maintain stable growth during this transitional period.

In terms of tax and policy reforms, he believes the focus should be on reducing capital investment costs, especially by increasing cost recovery rates to support the upgrading of equipment and technology for enterprises. This will not only help expand business but also enhance productivity to adapt to the constantly changing economic environment.

He also hopes the government can expand investment incentives in the shipping industry. Currently, the manufacturing industry benefits from reinvestment subsidies, but shipping companies do not have similar privileges. Therefore, there is an expectation for the government to amend Section 54A(6) of the tax law to provide reinvestment subsidies for shipping companies, further driving the development of this industry.

Edotco Group CEO, Adlan A. Adnan

Adlan Tajudin, CEO of Edotco Group Private Limited, stated that although the company has made progress in developing more eco-friendly and efficient telecommunication towers, infrastructure construction still relies on local government approvals.

To address these challenges, he hopes the government can expedite the approval process, promote public-private partnerships to share the costs of infrastructure expansion.

He pointed out that by prioritizing investment in infrastructure and supporting digital transformation, the telecommunications sector will significantly enhance innovation, productivity, and inclusiveness. The role of the government in simplifying tower construction regulations and policies is crucial, as it is essential for driving nationwide 5G deployment and digital inclusivity.