KUALA LUMPUR: Having established a firm footing in Asean, Malaysia must remain competitive to become an investor-ready nation in the global race for renewable energy.
Solarvest Group vice-president Jack Tan said regional and global players are looking at resources as the new game.
“We need to make ourselves an investor-ready country – an investor-ready platform – because without the right resources and policies in place, some investors simply can’t come to Malaysia,” Tan told SunBiz.
Tan highlighted that strong green credentials are now a decisive factor for international investments.
“If our green score is insufficient, we run the risk of falling behind. Look at why data centres are coming to Malaysia – because we can provide green energy and the necessary resources to support them,“ he said.
He noted that other Southeast Asian markets are also rapidly advancing.
“The Philippines has its Green Energy Option Programme, and Vietnam has a direct power purchase agreement – both designed to sell green energy directly to investors. If Malaysia does not move fast, the region will,” Tan cautioned.
He said Malaysia’s renewable energy capacity demonstrates a consistent upward trajectory.
Over the past 10 years, Malaysia has accumulated more than 4.5 gigawatts of solar renewable energy capacity, from the early feed-in tariff era to today.
“Last year alone, we achieved nearly the same amount again, thanks to new initiatives such as the LSS5, LSS5+, and Selco programmes. That is a tenfold growth rate compared with our past decade,” Tan said.
He added that the rapid expansion is not just a sign of progress but also of confidence.
“It shows people are committed – and more importantly, that investors have confidence in Malaysia’s renewable energy policies. With clear government direction and an ecosystem ready to support large-scale green projects, Malaysia is positioning itself as a serious contender in Southeast Asia’s clean energy future,“ Tan said.
He noted that while Malaysia’s growing appeal to investors is evident, the next country to watch will be Indonesia, particularly with Perusahaan Listrik Negara driving major energy projects and cross-border initiatives such as energy exports to Singapore.
“This is one of the major moves we are observing closely – and one we are actively positioning ourselves for,” he said.
Turning to the Philippines, Tan said the market has strong growth potential.
He noted that he Philippines is one of the most open and promising markets after Singapore, and the country’s electricity rates are among the highest in the region – higher than Malaysia’s. “This creates a strong economic case for renewable energy development.”
Tan said the Philippines has rolled out its own large-scale initiative, the National Renewable Energy Programme, equivalent to Malaysia’s LSS (large-scale solar) programme, to attract major industry players.
“Their energy demand is significantly higher than Malaysia’s. However, infrastructure and grid connectivity remain challenges. That is why most projects there are in the 100- to 300-megawatt range, compared to Malaysia’s larger-scale 500-megawatt projects,” he added.
Momentum is clearly building in the Philippines, Tan said, underscored by discussions of a proposed four-gigawatt solar project – potentially the world’s largest – reflecting the growing scale and ambition of Southeast Asia’s renewable energy landscape.
“If we look at the emerging renewable markets in the region, Malaysia leads, followed by the Philippines, Vietnam and Indonesia. Thailand, meanwhile, is expected to remain stable and conservative, similar to Malaysia’s own steady growth path,” Tan said, outlining how Southeast Asia’s renewable energy landscape is shaping up.
Asked about challenges related to green connectivity and energy storage, Tan said these issues must be viewed in context.
“Every market faces challenges,” he said. “The key is understanding adoption from multiple angles, both in technology readiness and in policy support.”
Tan highlighted that one of renewable energy’s greatest advantages lies in its predictability.
Unlike fossil fuels, which fluctuate with global supply and demand, renewable energy can be forecast with far greater certainty.
“When you install solar panels or adopt electric vehicles, you can project their performance and lifespan. But with coal and gas, next year’s prices remain uncertain, constantly shifting with market conditions and oil prices.”
Tan said global geopolitical forces, too, are driving the accelerating transition towards clean energy. The ongoing trade tensions between China and the United States have intensified the push towards renewable energy, creating a booming market and attracting new investors.
For Solarvest, Tan said, this shift presents both an opportunity and a responsibility.
“We see a clear gap in Southeast Asia’s energy transition. To close that gap, we need not only technical expertise but also strong financial backing.”
To that end, Solarvest recently formed a strategic partnership with Brookfield, one of the world’s largest alternative asset managers with more than US$1 trillion (RM4.13 trillion) in assets and over 270 gigawatts of energy holdings globally.
“Brookfield is a global leader in the energy sector,” Tan said. “We are working with them because they bring both expertise and capital into Malaysia.”
He noted that Brookfield’s first investment in Southeast Asia was directed to Malaysia – a strong signal of international confidence in the nation’s renewable energy potential.
“We see Malaysia as a stable, well-structured market with clear commitments and credible policies. That is why we believe Malaysia has the opportunity to emerge as a major green energy hub in Asia,” Tan said.
