Sarawak leads Malaysia with new energy transition policy focusing on seven low-carbon areas

Sarawak becomes the first Malaysian State to launch Energy Transition Policy. (Photo: Government of Sarawak)

Sarawak has announced its Energy Transition Policy (SET-P), becoming the first state in Malaysia to introduce a comprehensive strategy of this kind.

The policy sets out seven key directions for low-carbon energy development and aims to establish a new State Energy Council. The initiative is expected to generate an estimated economic value of MYR 550 billion (about USD 129.9 billion).

New policy projected to create 80,000 jobs, nurture green talent

Premier Abang Johari made the announcement on Aug. 11 during the Public Industry Engagement Day organised by the Ministry of Energy and Environmental Sustainability (MEESty). He outlined seven priority areas for future development: renewable energy, natural gas, energy efficiency, low-carbon transportation, clean hydrogen, carbon capture, utilisation and storage (CCUS), and alternative energy.

Abang Johari said SET-P has transformative potential and is expected to create 80,000 high-paying jobs by 2050, attract MYR 580–700 billion (about USD 137–165 billion) in investment, and channel more than 75% of the benefits to middle- and lower-income households.

“We are fortunate to have the capacity to generate renewable energy and are already seeing strong global interest, especially in our hydroelectric power potential,” Abang Johari said.

The state government aims for the policy to address three main challenges in energy development—security, affordability, and sustainability. 

Future measures include offering free higher education opportunities to cultivate local green-collar talent and establishing a State Energy Council in 2026 to act as a communication bridge between the government and energy market participants, while simplifying regulations to enhance public-private cooperation.

The "Sarawak Energy Transition Policy" (SET-P) is expected to create 80,000 jobs locally. The photo shows Kuching, the capital of Sarawak. (Photo: iStock)

Bintulu Port aligns with policy, signs MoUs with three companies

Abang Johari’s administration has been proactive in advancing the green economy. In May this year, Sarawak launched the Sarawak Sustainability Blueprint 2030 and the Sarawak Hydrogen Economy Roadmap (SHER)—the first plans of their kind initiated at the state level in Malaysia. The state is also planning to establish a climate change centre to fully leverage its abundant forest resources and low-carbon energy to develop carbon credits and hydrogen.

At the policy launch press conference, Bintulu Port Holdings Berhad (BPHB) announced it had signed three memorandums of understanding (MoUs) with Sakura Ferroalloys, Borneo Biogas, and China’s Jiangsu Guofu Hydrogen. These partnerships aim to strengthen green energy development and accelerate industrial decarbonisation in Sarawak.

Source: Sarawak Tribune, The Sun, The Edge Malaysia, Bernama