The green energy sector has major potential to attract more foreign direct investment (FDI) to Malaysia as the world moves toward sustainable energy sources, with Sungai Petani Member of Parliament (MP) Dr Mohammed Taufiq Johari advising the that the government should acknowledge the trends of the global demand increasing for greener and more environmentally friendly solutions.
He cited that programmes like the RE100 – where international companies pledge to use 100% renewable energy (RE) – can be a major driver for countries that can provide clean energy sources.
“This provides Malaysia with the opportunity to become a leader in the green sector in the ASEAN region. Through an investment strategy that is aligned with environmental and social needs, the government can ensure fair economic growth and benefit future generations,” he said.
It is expected that the demand for green buildings in Malaysia is projected to surge significantly in the coming years, potentially reaching around 10 million square feet (sq ft) annually.
However, JLL Appraisal & Property Services Sdn Bhd (JLL Malaysia) believes that the demand is currently unmet. Its head of research and consultancy, Yulia Nikulicheva said that an adequate supply of green buildings could be achieved either by upgrading the existing inventory or by constructing new structures.
“I believe this is a complex issue because many older buildings have the potential to be upgraded with green features. Despite that, the current financial aspects are quite challenging and some buildings may also be repurposed for other uses,” she said.
Nikulicheva also noted that the green building market in Malaysia is performing well, although it still lags behind Singapore, which has a higher proportion of green space.
“Compared to Hong Kong, where the ratio of green space is relatively low, we are performing quite well,” she said, pointing out that some older office markets like those in Japan and Hong Kong, face greater challenges in transformation.
“In Malaysia, we are quite well-positioned because many of the buildings have been constructed recently. Even though they may not have green features, we see that landlords of these buildings can implement green transformations.
“Starting this year, we have seen more landlords undertaking customer initiatives in green practices and next year might be significant for these developments. I believe that in the coming years, we will see considerable progress,” she added.
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