Malaysia Debt Ventures Bhd (MDV) has approved a total of RM2.26 billion in green technology financing for more than 148 companies, according to Science, Technology and Innovation Minister Chang Lih Kang. The funding is part of ongoing government efforts to support sustainable and technology-driven projects across the country.
The minister highlighted that MDV had previously launched a RM2 billion sukuk programme in 2022, designed to fund technology-based initiatives and contracts under its mandate. Proceeds from the sukuk are used to provide green technology financing, leveraging government-backed initiatives such as the Green Technology Financing Scheme (GTFS).
In addition to financial support, the government is expanding fiscal incentives to encourage investment in renewable and sustainable technologies. These include the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE), which will now cover hydrogen technology. There are also import duty and tax exemptions for renewable energy equipment, including hydrogen-related systems.
Chang noted that a 100% Investment Tax Allowance is available for capital expenditure on hydrogen projects over a 10-year period, allowing full deduction from statutory income. Additional policy measures are being explored to lower hydrogen production costs. These include renewable energy tariff packages, relaxed grid access, the use of Renewable Energy Certificates (RECs), and the allocation of gazetted land to accelerate infrastructure development.
On the establishment of a Hydrogen Investment Zone, Chang explained that it has the potential to drive Malaysia’s economic growth while positioning the country as a leading regional hydrogen hub and competitive investment centre in the Asia-Pacific.
To implement these initiatives, MOSTI has set up a dedicated working group tasked with coordinating the national hydrogen economy agenda. This platform engages with other government agencies and ministries, including the Ministry of Finance and the Ministry of Investment, Trade and Industry, to ensure an integrated approach. The working group is also responsible for formulating a comprehensive incentive package, encompassing energy tariffs, fiscal incentives such as GITA and pioneer status, import tax exemptions, and infrastructure support, all aimed at accelerating the development of Malaysia’s hydrogen economy.
