Energy & Technology

GEORGE TOWN, Leader Energy Group Bhd (Leader Energy) is set to build a 100-megawatt (MW) solar farm in Tanjung Manis, Sarawak, to supply electricity to Syarikat SESCO Bhd (Sesco) under a 30-year power purchase agreement (PPA). The agreement was signed between Leader Energy (Sarawak) Sdn Bhd and Sesco, a subsidiary of Sarawak Energy Bhd. The project is expected to be completed by Dec 31, 2027. Leader Energy CEO and executive deputy chairman Datuk Sean H’ng said the project marks a key milestone in tapping Sarawak’s solar potential and supports the state’s clean energy transition. “This initiative goes beyond power generation — it’s about building capabilities and creating long-term value for the Tanjung Manis community,” he said, adding that the project aligns with the group’s goal of driving Malaysia’s renewable energy growth. The solar farm will be developed in partnership with Pusaka Capital Sdn Bhd — a subsidiary of the Sarawak Timber Industry Development Corporation — and Smartgen Energy Sdn Bhd. Leader Energy joins several other companies that recently secured 100MW solar projects with Sesco, including Solarvest Holdings Bhd and Press Metal Aluminium Holdings Bhd in Mukah, and a Malakoff Corp Bhd unit in Bintulu. These awards are part of Sarawak Energy’s plan to expand its solar capacity to 1,500MW by 2030, supporting the state’s target of achieving 10GW in total renewable energy capacity.

PETALING JAYA, Gadang Holdings Bhd announced that its consortium has secured a contract to develop a large-scale solar photovoltaic (LSSPV) power plant in Tawau, Sabah, valued at RM52 million. In a filing with Bursa Malaysia on Tuesday, the construction and property development group said the award was received by Tenaga Aspirasi Sdn Bhd, its indirect 60%-owned subsidiary. The contract, for the engineering, procurement, construction, and commissioning (EPCC) of a 15MWac solar facility, underscores Gadang’s growing involvement in Malaysia’s renewable energy sector. The project was awarded through a consortium formed between Gadang’s wholly owned unit, Gadang Engineering (M) Sdn Bhd, and JS Solar Sdn Bhd. Together, the partners will be responsible for the full EPCC scope — covering the plant’s design, procurement of materials and equipment, civil works, installation, as well as testing and commissioning to ensure compliance with technical and safety standards. According to Gadang, the contract is set to run for a period of 14 months, with completion targeted for the final quarter of 2026. Once operational, the LSSPV project is expected to contribute to Sabah’s renewable energy supply, in line with the nation’s broader clean energy transition under the government’s energy roadmap. “The award of this project is anticipated to contribute positively to the group’s revenue and earnings throughout the contract duration,” Gadang said, adding that the venture is consistent with its strategy of diversifying into sustainable energy infrastructure. Industry observers note that the latest win further strengthens Gadang’s track record in delivering infrastructure and utility-related projects, while also supporting Malaysia’s push to increase the share of renewable energy in its national energy mix.

KUALA LUMPUR/BEIJING, China and Malaysia have begun preliminary discussions on setting up a rare earths processing plant, with sovereign wealth fund Khazanah Nasional likely to partner a Chinese state-owned enterprise to build the refinery, according to people familiar with the matter. If the venture materialises, it would mark a major policy shift for Beijing, which has long restricted the export of rare earth processing technology to safeguard its dominance of the sector. In return for sharing its know-how, China is seeking access to Malaysia’s largely untapped rare earth deposits, aiming to curb competition from Australian producer Lynas Rare Earths, which operates a processing facility in Pahang, two Malaysian sources said. All four sources who spoke to Reuters requested anonymity given the sensitivity of the matter. Khazanah Nasional and Malaysia’s ministries of natural resources and trade did not respond to requests for comment. China’s State Council Information Office also did not immediately reply due to the National Day holiday. A Malaysian source cautioned that the plan faces hurdles, including doubts over whether Malaysia can supply sufficient raw materials for the plant. Two other sources highlighted environmental and regulatory challenges, noting that mining approvals require both federal and state-level clearances. Malaysia has previously ruled out rare earth mining in ecologically sensitive zones such as permanent forest reserves and water catchment areas. The proposed refinery would be capable of processing both light and heavy rare earths, two Malaysian sources said. These materials are critical for products ranging from smartphones and electric vehicles to clean energy technologies and defence equipment. Heavy rare earths are especially scarce, with some already facing supply shortages. Malaysia is estimated to hold 16.1 million metric tons of rare earth deposits but lacks the technology to develop them. The country has banned exports of raw rare earths to prevent resource drain, granting only a limited exception in 2022 for a pilot mining project to establish national guidelines. Australia’s Lynas, the world’s largest rare earth producer outside China, signed an agreement in May with Kelantan state for future supply of mixed rare earth carbonate, signalling efforts to build Malaysia’s role in the industry. In August, Natural Resources Minister Johari Abdul Ghani said China was ready to offer technical and technological support in rare earth processing, though President Xi Jinping wanted cooperation limited to state-linked firms to safeguard trade secrets. Discussions remain at an early stage, Johari added, but a successful deal would make Malaysia one of the few nations with access to both Chinese and non-Chinese processing technologies.

KUALA LUMPUR: The Investment, Trade and Industry Ministry (MITI) has unveiled the Steel Industry Roadmap 2035, aimed at addressing overcapacity issues and advancing sustainability in the sector. Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia is grappling with a sharp imbalance between supply and demand. Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia is facing a significant imbalance between supply and demand. “By 2030, upstream capacity is projected to reach 40.8 million tonnes, while domestic demand is expected to be only 14.7 million tonnes. This gap highlights overcapacity, with underutilised assets, weak returns on investment, and eroded competitiveness and resilience,” he said in his keynote speech at the launch today. The roadmap outlines a strategy to stabilise, restructure, and transform the local steel industry in line with the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap, and the Net Zero 2050 target. It introduces 15 strategies across three phases, beginning with a two-year stabilisation period. This phase includes measures such as managing overcapacity, restructuring licensing, tightening enforcement against illegal operators, securing domestic raw materials, and preparing for decarbonisation. From 2027 to 2035, the focus will shift to transformation, including accelerating carbon pricing mechanisms, developing low-carbon production infrastructure and standards, and reinvesting in new technologies to enhance capabilities. Beyond 2035, the roadmap envisions a fully green steel sector by 2050, driven by talent development and capital mobilisation to keep Malaysia’s steel industry competitive and aligned with net-zero commitments. Tengku Zafrul added that the roadmap also aims to contribute to Asean’s sustainability agenda. Malaysia has proposed a regional cooperation framework, including a shared database on production capacity and utilisation to improve transparency and guide responses to overcapacity, dumping, and transshipment. Other potential regional efforts include a common decarbonisation pathway, full monitoring, and harmonised green steel standards. “Our steel industry stands at a crossroads. The choices we make today will decide whether Asean’s steel sector becomes a driver of growth, resilience, and sustainability — or remains burdened by old challenges,” he said.

KUALA LUMPUR, Singapore-listed food processor Wilmar International Ltd — an 18.8%-associate of Bursa Malaysia-listed PPB Group Bhd — announced that the Indonesian Supreme Court has overturned its acquittal, along with those of two other palm oil giants, in a graft case tied to cooking oil export permits in 2021. In June, Wilmar deposited 11.88 trillion rupiah (about US$729 million or RM3.1 billion at the time) with the Indonesian Attorney General’s Office (AGO) as a “security deposit” while awaiting the court’s ruling on alleged misconduct between July and December 2021, during a nationwide cooking oil shortage. The deposit would have been returned if the earlier Central Jakarta Court decision was upheld but could now be forfeited partly or fully following the Supreme Court’s reversal. In a statement on Thursday, Wilmar confirmed that the Supreme Court ruled against the acquittals of Wilmar Group, Permata Hijau Group and Musim Mas Group after an appeal by the AGO. The appeal involved five of Wilmar’s subsidiaries — PT Multimas Nabati Asahan, PT Multi Nabati Sulawesi, PT Sinar Alam Permai, PT Wilmar Bioenergi Indonesia and PT Wilmar Nabati Indonesia — accused of causing state losses, making unlawful profits, and harming the business sector. According to the AGO, the alleged actions caused losses amounting to 12.3 trillion rupiah (around US$755 million). Wilmar said the full judgment, including the reasoning and any final award amount, has yet to be released. “While Wilmar respects the decision of the Indonesian Supreme Court, it maintains that the actions taken by the Wilmar Respondents during the cooking oil shortage were in compliance with prevailing regulations and made in good faith. A further announcement will follow once the formal judgment is issued,” the group said. The case comes after Wilmar in July denied separate allegations of selling adulterated rice. Earlier this month, PPB managing director Lim Soon Huat cautioned that, in a worst-case scenario, Wilmar could face up to RM600 million in financial impact if it loses its appeal, which could translate to about 45 sen per PPB share. However, he expressed optimism that the ruling would be more favourable and noted that no financial provisions have been made at this stage. Despite the uncertainty, Lim assured that PPB’s dividend policy remains unaffected. Wilmar continues to be PPB’s main profit contributor, accounting for RM992 million or 72.5% of its FY2024 profit before tax of RM1.33 billion.

JOHOR BAHRU, Johor has reached a historic milestone as global tech giant NVIDIA, in partnership with YTL Corporation, named the state one of only five NVIDIA Cloud Partners worldwide. Menteri Besar Datuk Onn Hafiz Ghazi described the appointment as a major vote of confidence in Johor’s digital ecosystem and its potential to drive digital transformation across ASEAN. “The Johor-Singapore Special Economic Zone (JS-SEZ), leveraging the strengths of both Johor and Singapore, positions the state as a strategic gateway for regional digital and AI development. “The RM20.6 billion YTL Power-NVIDIA project, announced last December in Kulai, lays the foundation for Malaysia’s most advanced AI infrastructure,” he said in a Facebook post. He added that the initiative will develop the country’s first Large Language Model (LLM), generate thousands of high-tech jobs, and establish Johor as an ASEAN AI Centre of Excellence, demonstrating the state’s capacity to lead regional technological innovation with a clear and sustainable strategy. “The partnership will be further strengthened through multilingual AI model development, joint testbeds within JS-SEZ, and AI talent pipelines to support regional digital growth. This initiative is set to position Johor as a leading ASEAN hub for AI and digital innovation,” he said.

SUNGAI BESAR, Malaysia is on track to host Southeast Asia’s first rocket launch pad by 2029, with three shortlisted sites located in Pahang, Sarawak, and Sabah. Malaysian Space Agency (MYSA) Director-General Datuk Azlikamil Napiah said the initiative, part of the National Space Policy 2030, could contribute more than RM10 billion to the nation’s GDP if Malaysia positions itself as a regional hub in the growing space industry. “Three parties have expressed interest so far, with one submitting a full feasibility study last week. The report will be reviewed within 90 days. Any foreign investors must partner with local firms and secure land approval from the respective state governments,” he said after officiating the handover of upgrading works at Surau Parit 5 Timur (Tengah), Jalan Baru, today. He highlighted Malaysia’s strategic advantage of being located near the Equator, which allows more fuel-efficient rocket launches. Beyond the launch pad, the project also envisions building a domestic earth observation satellite, a space city, and offering launch services. Developed as a public-private partnership, costs will be shared between the government and private investors, with construction expected to begin in early 2029 once approvals are finalised. “Besides drawing investments, the project will also create significant economic benefits for local communities through infrastructure development, energy projects and new job opportunities,” he said. Earlier, Azlikamil handed over five upgraded surau under the MADANI Adopted Village programme, involving a total allocation of RM315,000. The surau projects, completed between June 9 and Aug 8, include Surau Ehsaniah (Parit 2 Timur), Surau Tuan Guru Haji Bahaudin (Parit 3 Timur), Surau Haji Mohamad (Parit 3 1/2 Timur), Surau Nur Al-Iman (Parit 4 Timur), and Surau Parit 5 Timur (Tengah).

PUTRAJAYA, The MADANI government will allocate about RM11 billion under the BUDI MADANI RON95 (BUDI95) fuel subsidy scheme to cover the gap between the subsidised price of RM1.99 per litre and the market price of around RM2.60 per litre. According to the Ministry of Finance (MOF), removing blanket subsidies is expected to generate annual savings of RM2.5 billion to RM4 billion. These savings will be redirected towards targeted aid programmes such as the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA). BUDI95, a targeted RON95 subsidy for Malaysian citizens, has been designed to be simple, fair and beneficial to recipients. All citizens aged 16 and above with a valid driving licence will automatically be eligible for up to 300 litres of subsidised RON95 per month. MOF said the 300-litre monthly cap was set based on Department of Statistics Malaysia (DOSM) data, which shows 99% of private vehicle drivers consume less than this amount. “This quota is sufficient, for example, to cover a worker commuting 200km daily between Seremban and Puncak Alam in a Proton Saga,” the ministry added. The relatively high cap also serves as a safeguard against misuse, such as cross-border smuggling or large-scale commercial abuse. To help users check eligibility and balances, the government will launch the portal www.budimadani.gov.my at 9 a.m. on Thursday (Sept 25). E-hailing drivers can also apply for additional quota through the portal. A helpline (1300-88-9595) will also be available from the same day. Prime Minister Datuk Seri Anwar Ibrahim announced yesterday that the RON95 pump price will be reduced from RM2.05 to RM1.99 per litre effective Sept 30 through the targeted subsidy. He added that over 16 million Malaysians are expected to qualify for the scheme, based on Road Transport Department (JPJ) and National Registration Department (JPN) records. Meanwhile, MOF clarified in a separate statement that the government has no plans to limit RON95 purchases. “Although measures are being studied to curb subsidy misuse, BUDI95 was introduced to meet Malaysians’ daily fuel needs. A one-purchase-per-day restriction would not align with this objective,” it said.

KUALA LUMPUR, Telekom Malaysia Bhd (TM) has joined an international consortium to develop a new submarine cable system, aimed at strengthening regional connectivity and meeting rising demand for high-speed internet. In a statement, the national telecommunications provider said the project would enhance data capacity, improve network resilience, and support the rapid growth of digital services across Asia-Pacific. The cable system, which will span multiple landing points in the region, is designed to provide low-latency and high-reliability connections to support cloud services, content delivery, and digital applications. “By participating in this consortium, TM is reinforcing its role as a key regional connectivity hub while ensuring Malaysia remains well-positioned in the global digital economy,” the company said. Industry analysts view the investment as a strategic move to future-proof TM’s infrastructure and strengthen its competitiveness in catering to enterprises, service providers, and digital platforms. The project is expected to be completed in phases, with commercial operations targeted to commence by 2027.

KUALA LUMPUR, Clean energy solutions provider Solarvest Holdings Bhd has entered into a strategic collaboration to accelerate growth in the commercial and industrial renewable energy self-supply (CRESS) market. The partnership aims to tap into the rising demand for sustainable energy solutions among businesses seeking to lower carbon emissions and reduce dependence on conventional power sources. In a statement, Solarvest said the tie-up will combine its technical expertise in solar engineering and project delivery with its partner’s resources and network to unlock opportunities in Malaysia’s growing CRESS segment. “The collaboration reinforces our commitment to drive renewable energy adoption among corporates and industries, supporting the nation’s energy transition agenda,” Solarvest said. Industry analysts note that the CRESS programme, introduced under Malaysia’s renewable energy framework, has gained traction as more companies look to self-generate electricity for operational efficiency and long-term cost savings. The partnership is expected to contribute positively to Solarvest’s earnings outlook while enhancing its position as a key player in the renewable energy ecosystem.