27/08/2025

BIZ & FINANCE WEDNESDAY | AUG 27, 2025

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‘Malaysia must balance data centres with green transition’

Petronas Carigali hits first oil at Bindu Field offshore T’ganu KUALA LUMPUR: Petronas Carigali Sdn Bhd, a wholly owned subsidiary of Petroliam Nasional Bhd (Petronas), has achieved first hydrocarbon production from the Bindu Field, located 210km off the coast of Terengganu. This achievement on June 9 follows Petronas Carigali assuming its new role as operator of the Gas Production Sharing Contract (GPSC) effective April 1, underscoring its commitment to delivering secure and sustainable gas supply for Peninsular Malaysia. Petronas Carigali CEO Hazli Sham Kassim said this first hydrocarbon production establishes Petronas Cari gali’s operational readiness as GPSC operator. “It demonstrates our technical expertise, accelerates domestic gas monetisation, and most importantly, ensures maximum value from Malaysia’s resources for the nation. “The GPSC operations supply nearly half of Peninsular Malaysia’s gas demand, powering both industrial-scale power plants and small-to-medium enterprise manufacturers through our existing infrastructure,“ he added. The Bindu field development comprises a new wellhead platform connected to the Guntong E production hub via a 62km pipeline. Both the topside and substructure were fabricated locally, designed to be unmanned and powered by a solar energy system. It is the final greenfield development commitment under the current GPSC terms, and the field is expected to achieve peak production of 75 million standard cubic feet of gas per day from two wells. Petronas Carigali operates the field with a 50% participating interest in the GPSC, with joint venture partner ExxonMobil Exploration and Production Malaysia Inc holding the remaining stake. Petronas Carigali remains firmly rooted in Malaysia’s upstream sector, driving commercially viable operations through strategic investments while maintaining high standards of safety, efficiency and sustainability across all assets.

PETALING JAYA: Malaysia must strike a careful balance between embracing data centre investments and ensuring its green transition goals are met, said member of parliament for Setiawangsa and former natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad. Speaking at the Renewable Power, Digital Growth: Malaysia’s Sustainable Edge conference, organised by the Malaysian Institute of Management (MIM) in collaboration with the Konrad Adenauer-Stiftung (KAS) Malaysia, Nik Nazmi said the country must adopt a pragmatic approach towards the rapidly growing digital economy. “When people question Malaysia’s decision to embrace data centre investments, my answer has always been that we have to be practical. “We should not simply welcome every data centre, but ensure they align with our net zero targets and pay fair tariffs for the high energy and water they consume,” he said. Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

possibilities, and digital growth opens new frontiers. But Malaysia’s sustainable edge will not come from technology alone. “It will come from people, from leaders who can bridge climate and commerce, balance profit with purpose and turn vision into action,” she said. Yeoh emphasised the importance of inclusive and courageous leadership. “Because programmes without leadership are just meaningless. Leadership is what gives them direction and impact,” she added. “Every session today is not just about listening, but deciding how you, your organisation and your community will contribute to Malaysia’s green and digital future.” The event also saw the launch of the “Speak ESG” glossary by the UN Global Compact Network Malaysia & Brunei executive director Faroze Nadar. The resource aims to simplify complex ESG terminology and make it more practical for businesses. “Too many acronyms make sustainability confusing, sometimes even inaccessible. That is why we built this glossary, to make ESG terms more understandable, relatable and applicable,” Faroze said. Developed in collaboration with Universiti Malaya, Bursa Malaysia and several industry partners, the glossary includes 80 essential ESG terms with real-world examples. It is available in English, Bahasa Malaysia and Chinese, aligning with both local and global standards. The conference featured plenary sessions and specialised tracks with experts from YTL Data Centre, Climate Governance Malaysia, the Embassy of Japan and the UN Global Compact Network, covering low-carbon energy systems, regional collaboration and skills development for a just transition.

o Future sustainability depends on leadership and clarity on ESG, not technology alone

Energy Efficiency and Conservation Act, and next year we will launch a national adaptation policy, because climate change is already happening before our eyes,” he added. Despite contributing only 0.7% of global emissions, Nik Nazmi said Malaysia remains committed to achieving net-zero by 2050. He emphasised the role of youth in shaping policies. “Young people are more aware than the older generation. What we need is to harness their energy to drive more ambitious policies,” he said. The forum gathered over 250 delegates from government, industry and civil society to discuss synergies between renewable energy and digital innovation. In her opening address, MIM president Datuk Yeoh Soo Min said Malaysia’s sustainable edge lies not only in technology but also in leadership. “Renewable power expands our

Nik Nazmi noted that the government’s recent move to shift from blanket to targeted subsidies was crucial in ensuring fairness and efficiency. “If you are high consumers of energy, you should pay higher rates, while subsidies should go to SMEs, households and the B40 and M40 groups,” he said, adding that a just transition is vital to maintain public support for sustainability policies. He stressed that sustainability must be communicated in simpler terms to prevent backlash against environmental, social, and governance (ESG) initiatives. “If we don’t tell the story right, the public may see ESG as making life more difficult or more expensive,” he said. Nik Nazmi also revealed that Malaysia’s climate change policy is expected to be tabled in Parliament in October. “We have already passed the

Malaysia’s climate change policy will be tabled in Parliament this October, as leaders call for fair tariffs and stronger alignment between data centres and net

zero goals. – PEXELS PIX

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