Malaysia’s government is actively trying to develop renewable energy sources, especially in biomass. It hopes to obtain 5% of its energy sources from renewables by 2050 and has also offered tax incentives for their use and development.
Combined with the possible act on renewables, this could see a large influx of FDI into the development of such energy sources.
Thomas Brandt, general manager of the Malaysian-German Chamber of Commerce and Industry, said that Malaysia has already received RM10bn ($3bn) in FDI for solar power, and he believes this figure could double in the near future.
Malaysia’s parliament is due to discuss the proposal in October.