Budget 2025’s Energy Initiatives to Power Up Malaysia’s Renewable Sector

Budget 2025 has made a bold push towards advancing Malaysia’s energy transition with several new initiatives focused on sustainability and renewable energy.

Notably, the National Energy Transition Facility Fund is set to receive an increased allocation of RM300 million, tripling this year’s funding, reflecting the government’s commitment to driving cleaner energy solutions.

To encourage the adoption of energy-efficient equipment, e-Rebates worth up to RM70 million will be available for consumers and industries.

Additionally, the government will introduce Energy Performance Contracts (EPCs) across its agencies, targeting up to 10% in electricity savings. Urban areas like Putrajaya will also see expanded solar panel installations along 5 kilometres of pedestrian walkways and parking areas, signifying a strong move towards incorporating solar energy within city infrastructure.

Meanwhile, the Net Energy Metering (NEM) programme has been extended to June 30, 2025, enabling more rooftop solar PV installations, while the Green Technology Financing Scheme (GTFS) will continue with RM1 billion in funding until 2026 to support various green projects.

These initiatives are poised to benefit several key players in Malaysia’s renewable energy sector. Solarvest Holdings Bhd (0215) and Samaiden Group Bhd (0223), both strong players in solar PV development, are well-positioned to gain from the NEM extension and increased solar installations.

Kinergy Advancement Bhd (0193), with its expertise in sustainable energy solutions, stands to benefit from the introduction of EPCs across government agencies.

Meanwhile, Meta Bright Group Bhd (2097), through its subsidiaries and niche exposure in state-owned facilities, is expected to leverage the GTFS and infrastructure expansion.

With these measures, the energy sector is set for significant growth, and these companies are likely to be at the forefront of Malaysia’s renewable energy transformation.