06/09/2025

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SCAN ME

SATURDAY | SEPT 6, 2025

Looking at waste solutions, nuclear energy in new light

Ű BY JOHN GILBERT sunbiz@thesundaily.com

KUALA LUMPUR: As Malaysia accelerates efforts towards cleaner energy alternatives and improved waste management, waste-to-energy (WTE) solutions are emerging as a compelling option, particularly for islands such as Pulau Langkawi, Pulau Redang and Pulau Tioman. According to GreenRE chairman Datuk Seri FD Iskandar, the success of WTE initiatives hinges on one often-overlooked but critical factor – consistent and mandatory waste collection. “The key to making WTE work – especially on islands – isn’t just the technology. It’s rubbish collection. Without a proper waste collection system, the entire WTE model breaks down,” Iskandar told SunBiz . He pointed out that island communities face unique challenges. Their geographical isolation makes traditional landfill use unsustainable, while transporting waste to mainland facilities is both costly and logistically demanding. A local WTE facility, he explained, could address multiple issues at once – generating electricity from waste while reducing environmental impact. However, the cost of building such infrastructure remains a signi ficant barrier. “Incinerators can cost hundreds of millions, even billions, of ringgit,” Iskandar noted. “For private companies to invest, there must be an economy of scale, and that begins with a steady waste input.” One of the major hurdles, he said, is not the incinerator itself but the waste supply chain that sustains it. “Why do incinerators fail? Because they don’t receive enough

“We’re facing recurring environ mental problems. If we build strong capacity, we might even supply clean energy to our neighbours – at a premium,” he said. Iskandar and Ng also addressed concerns about infrastructure, parti cularly the readiness of the national grid. They believe these challenges can be managed, citing Malaysia’s earlier transition to solar energy as an example. “Ten years ago, when we talked about solar energy, the same grid concerns were raised,” said Iskandar. “But we adapted. We built the infrastructure, and today solar is no longer an issue.” Ng agreed, adding, “Once we commit to nuclear, the infrastructure will follow. What’s important is that we prepare ahead – technically, financially, and socially.” Ultimately, both Ng and Iskandar believe the success of nuclear energy in Malaysia will depend not only on technological readiness but also on political will and public buy-in. “If there’s a will to do it, and if all stakeholders come together, nuclear can be a game-changer,” Ng said. “But we must move beyond fear and start thinking long-term. Every one is thirsty for energy. It’s time to see nuclear not as a threat – but as a solution,” he added.

into the national energy mix. Among its strongest advocates is Rehda Institute chairman Datuk Jeffrey Ng Tiong Lip, who views nuclear energy as a sustainable and future-oriented option for the country. “If Malaysia takes on nuclear energy, it would be a progressive move, especially within the Asean context,” said Ng. “There are enough proponents supporting this, but the stigma – rooted in fear and outdated nar ratives – is still holding us back.” Iskandar shared similar views, recalling that just two or three years ago, even mentioning nuclear energy would have sparked widespread opposition. “But times are changing,” he said. “Look at Japan and other developed countries – clean, efficient and now more advanced in energy tech nology. Nuclear is something the region can and should explore.” Ng said much of the public’s hesitation stems from historical inci dents, such as the Chernobyl disaster in the 1980s, as well as the way such events are portrayed in popular culture. “People still remember Cher nobyl. That fear persists due to movies and media. But technology has come a long way. Safety pro tocols and engineering standards

o Need for Malaysians to change their mindset towards the two sectors rubbish,” he explained. “Local authorities must make it mandatory for waste to be deposited at designated centres. Without this, there’s no guarantee of volume.” The process, Iskandar stressed, must start with the establishment of recycling and collection centres. Only then can waste be systema tically transported to WTE facilities. But even this step is fraught with cost challenges. “Transporting waste is expensive. You have to factor in diesel costs, manpower and distance,” he said. As Southeast Asia faces rising energy demand and the urgent need to decarbonise, nuclear energy is emerging as a viable solution – not just for the mainland, but also for islands where logistical and infra structure challenges frequently disrupt energy security. In Malaysia, industry leaders say it is time to confront the long standing stigma surrounding nuclear power and consider integrating it

Iskandar: Success of WTE hinges on waste supply chain.

Ng: Nuclear energy can be a game-changer.

have drastically improved,” he said. Despite these technological advances, financing remains a key obstacle. Ng pointed out that many local financial institutions remain cautious, citing reputational risks and lingering public concerns. “Banks are wary, understandably so. But we must start looking at the science, not the stigma,” he said. “We need stakeholders to align and support science-based advocacy. If we can build that consensus, Malaysia could be among the first in Asean to embrace next-generation nuclear.” Ng also noted that as environ mental issues worsen – such as the recurring haze that affects air quality in Malaysia – nuclear energy can help deliver cleaner, more stable power across borders.

Hengyuan proceeds with plan to raise up to RM300m PETALING JAYA: Hengyuan Refining

M’sian construction sector to grow 9.6% in 2025: BMI

Company Bhd is moving forward with plans to raise up to RM300 million through a renounceable rights issue, which involves offering up to 300 million new shares, along with up to 150 million accompanying warrants. The rights issue will be made on the basis of one new rights share for every one existing Hengyuan share held by shareholders. Additionally, for every two rights shares subscribed, shareholders will be entitled to receive one free warrant. The issue price and the entitlement date for this rights issue and warrant offering will be announced at a later date. This move forms part of Hengyuan’s strategic efforts to strengthen its financial position and support future growth initiatives. Hengyuan chief financial officer Yeo Bee Hwan said that over the past five years, the company has invested more than RM2.2 billion in capital expenditure to enhance production capabilities and expand into higher-value products such as sustainable aviation fuel and Euro 5 gasoil. She said these initiatives have supported revenue growth and stronger customer demand. “The rights issue will provide the group with the working capital to secure additional feedstock and support operational efficiency, while also strengthening our equity base and financial flexibility,“ she said in a statement.

KUALA LUMPUR: Malaysia’s construction industry is expected to grow 9.6% year-on-year (y-o-y) in 2025, driven by the building sector, said BMI, a Fitch Solutions company. Meanwhile, long-term infrastructure con struction growth would be spurred by the energy and utilities investments, with regional integration driving the transport infrastructure development, it said. In a note, BMI said residential building and non-residential building are anticipated to expand 15.7% y-o-y and 10.3% y-o-y, respectively, this year. “The positive outlook for residential building construction is supported by ongoing private sector investment in luxury and large-scale projects, alongside sustained government initiatives targeting affordable housing. “At the same time, the robust expansion in non-residential building construction growth is underpinned by substantial investment in data centre and semiconductor manufacturing projects, spurred by rising demand for artificial intelligence and the country’s expertise in technology manufacturing,” it said. On long-term infrastructure construction growth, BMI said the government’s commitment to the country’s energy transition through policies such as large-scale solar tenders, combined with funding directed at renewables, will see robust growth for the energy and utilities sub-sector. – Bernama

Hengyuan will use the majority of the funds raised from the rights issue to purchase additional crude oil feedstock.

initiatives, Hengyuan is targeting a return to profitability by 2026. Subject to achieving profitability, the board will also consider the resumption of dividends in the future, as set out in the company’s 2024 annual report,“ Yeo said. On operational performance, Hengyuan in FY24 recorded revenue of RM17.2 billion, representing a 12% year-on-year increase, driven by higher demand for refined pro ducts. The company remains the primary supplier of Shell refined products in Peninsular Malaysia, while broadening its customer portfolio to include Petronas, Petron and Five. Currently, about 90% of Hengyuan’s refined products are sold domestically, with the remainder exported within Southeast Asia.

Malaysia Hengyuan International Ltd (MHIL), Hengyuan’s major shareholder holding 51.02% share, has undertaken to subscribe for its full entitlement of rights shares. This commitment secures the minimum fund raising of RM155 million under the exercise. The majority of the funds raised from the rights issue will be used to purchase additional crude oil feedstock, which is the primary raw material in the refining and production of petroleum products. By securing a steady supply of feedstock, the company aims to enhance production efficiency, reduce the cost per barrel, and improve its overall competitiveness in the market. “Supported by our major shareholder, MHIL, and the progress of our strategic