KUALA LUMPUR: Malaysia is considering using nuclear energy generation as one of the country’s energy sources in the future, said Economy Minister Rafizi Ramli.
He said that the responsibility for this is being carried out by the Ministry of Energy Transition and Water Transformation (PETRA) and the Ministry of Science, Technology, and Innovation (MOSTI) to ensure that the legal framework and regulations are developed for this purpose.
“Since the decision has been made at the National Energy Council level and endorsed by the Cabinet, the 13th Malaysia Plan (13MP) will officially include the possibility of nuclear energy as one of the energy sources in the country,” Rafizi said after an industry dialogue held in conjunction with the National OGSE Blueprint Forum 2024, here today.
Rafizi added that at the initial stage of nuclear sector development, a strict legal and regulatory framework would be needed, including compliance with international regulations.
“There is a long list of international compliance that we have to meet even before we embark into nuclear. But I think the nitty-gritty of how the power sector participates in nuclear, that will be decided and regulated most probably by the Energy Commission.
“This is at the regulatory level,” he added.
Meanwhile, Rafizi highlighted that the government will not intervene in the decisions of private banks, including CIMB Group Holdings Bhd, which will stop financing oil and gas companies.
“We understand that financial institutions, particularly private ones, will continue to face pressure if they cannot demonstrate that their loan portfolios are aligned with green economic activities.
“If banks are perceived as insufficiently funding green economy programmes while continuing to support projects seen as harmful, such as oil and gas, it explains why institutions like CIMB are taking these actions. However, the oil and gas industry in Malaysia is a strategic sector,” he said.
Rafizi said the government needs to ensure that there is sufficient financing through private banks or government financial institutions, even though some decisions from private banks are based on their strategies.
“On behalf of the oil and gas players, I will sit down and discuss with the banks to understand how they intend to address these conflicting demands,” said Rafizi.
In July this year, CIMB Group Holdings Bhd announced that it aims to reduce the Financed Emissions Lending Intensity (FELI) of its oil and gas portfolio by 16 per cent by 2030, covering Scope 1, 2 and 3 emissions from upstream and integrated oil and gas companies.
Also, starting Jan 1, 2025, CIMB will halt new financing for upstream oil fields approved for development post-2021, in line with the International Energy Agency’s (IEA) guidelines.
Earlier, Rafizi launched the OGSE Strategic Partnership Facilitation Service and the National OGSE Sustainability Framework Guide.
The one-day forum was organised by the Malaysia Petroleum Resources Corporation.
