KUALA LUMPUR: A comprehensive new energy policy would be designated to guide in addressing various issues across a number of energy-consuming sectors and to ensure its development is in line with global energy transition trends.
According to the 12th Malaysia Plan (2021-2025) document released by Economic Planning Unit through the new policy, the prospects for future energy-related growth would be explored, especially the potential of new energy from clean and sustainable energy sources including hydrogen.
“Currently, the energy sector does not have a policy that provides a comprehensive long-term strategic direction and is managed by several different ministries which results in inefficient use of energy in various sectors, especially transport, industry and commercial.
“The new energy policy will enable Malaysia to formulate long-term plans for low-carbon targets in the energy sector and environmental sustainability can be better addressed through the implementation of this new policy,” the document said.
In addition, the document also proposes to establish a comprehensive communication plan to strengthen cooperation with stakeholders as well as facilitate efforts to educate consumers and raise awareness on the appropriateness of market liberalisation.
It said consumers have a limited understanding of the energy ecosystem including the long-term benefits of subsidy rationalisation and the lack of coordination of information delivery on market reforms in the energy sector causing dissatisfaction.
The new plan, it said, would ensure better acceptance by stakeholders as well as enable energy industry reforms to be implemented smoothly.
The document also said that in order to ensure that the oil and gas sub-sector grows progressively, the use of domestic petrol and diesel would be given priority as well as valuable petrochemical industry investment would be encouraged and the use of biofuels would be expanded.
“These efforts will improve the trade balance, stimulate economic growth, as well as ensure the sustainability of the oil and gas industry value chain and further enhance supply security,” it said.
In addition, the direction of the chemical industry would be designated to ensure that it leverages technology and innovation by producing specialized chemical products as well as the establishment of a consortium to enhance the capabilities of local players in the oil and gas services and equipment sub-sector. – Bernama
