16/12/2025

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TUESDAY | DEC 16, 2025

DPM: Harness AI for energy transition and grid stability

M’sia on track to produce 1 million tonnes of SAF by 2028 KUALA LUMPUR: Malaysia is expected to produce one million tonnes (metric tonnes) of sustainable aviation fuel (SAF) by 2028, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said. He said the output will come from two domestic SAF production facilities, including one currently under development by Petroliam Nasional Bhd (Petronas). “Malaysia already has a SAF plant with an annual capacity of 350,000 metric tonnes operated by Hong Kong-based EcoCeres, while Petronas is building a facility with capacity of 650,000 metric tonnes. “Once both plants are completed in 2028, total SAF production capacity will reach one million metric tonnes,” Johari told the Dewan Negara during a question-and-answer session. He was responding to a supplementary question from Senator Che Alias Hamid on the government’s plans to ensure a stable supply of feedstock to support SAF production. To secure raw materials in the longer term, Johari said, the government would halt exports of used cooking oil and adopt a circular economy approach in plantation activities to ensure sufficient supply. Separately, he said, the government had introduced measures to attract investment into the SAF industry, including streamlining approvals for plant construction licences, SAF production licences and export permits. “The government will continue to assist and facilitate industry players interested in operating in Malaysia. These measures send a clear signal of the government’s full support for investors seeking to enter the SAF industry,“ he added. – Bernama RM493b in potential investments from missions since 2023 KUALA LUMPUR: A total of 37 trade and investment missions, including official overseas visits led by the prime minister, have generated RM493.64 billion in potential investments, involving 181 projects, from 2023 to 2025. Deputy Investment, Trade and Industry Minister Liew Chin Tong said that of the total, 52 projects with investments worth RM123.8 billion have been approved, while 38 projects valued at RM48.9 billion are targeted to be finalised in 2025. “Meanwhile, RM320.9 billion is expected to be finalised between 2026 and 2028,” he said during the question and answer session in the Dewan Negara yesterday. He said this in response to a question from Senator Datuk Koh Nai Kwong on the investment track record generated from overseas visits between 2022 and 2025. Liew also highlighted that the Malaysian Investment Development Authority (Mida) is undergoing a transformation process to ensure holistic and tangible spillover effects from investments in Malaysia. “This is to ensure that Mida is not only the national investment promotion agency, but also more importantly, strengthens monitoring of approved investments to ensure investor compliance with stipulated conditions, so that investments deliver maximum economic spillover effects in line with the New Investment Incentive Framework,” he said. – Bernama

KUALA LUMPUR: Deputy Prime Minister Datuk Seri Fadillah Yusof urged manufacturers and building owners to deploy artificial intelligence-enabled energy efficiency, demand response and storage solutions as Malaysia accelerates its push towards a low carbon, digitally enabled economy. He also urged them to share lessons learned so that aggregated demand can function as a reliable system resource. Such measures, he emphasised, are critical to easing pressure on the national power grid while supporting the country’s long-term energy transition goals, as the fastest clean megawatt is the one that does not need to be built. Speaking at the Global AI, Digital and Green Economy Summit 2025 yesterday, Fadillah, who is also Energy Transition and Water Transformation Minister, said AI allows electricity demand to be optimised, peaks predicted and energy storage coordinated in real time, turning buildings, factories and electric vehicles into active contributors to grid stability rather than sources of strain. “This is how demand becomes an asset, not a problem,” he said in his keynote address themed “Accelerating Sustainability Through Artificial Intelligence”. The one-day summit brought together policymakers, business leaders, financiers and technology players to explore how AI can be harnessed to drive decarbonisation, strengthen energy systems and unlock green growth across the region. Fadillah said Malaysia is entering a decisive decade where the energy transition, climate action and the rapid rise of AI are no longer separate conversations but converging realities. The key challenge, he stressed, is execution. “If we are serious about building a low carbon economy that is competitive, inclusive and resilient, we must modernise our power systems, digitalise our economies with trustworthy AI, and translate climate ambition into bankable, investable projects all at the same time,” he said. Under the National Energy Transition Roadmap, Malaysia is targeting around 70% renewable energy capacity by 2050. Achieving this, however, will require a fundamental overhaul of the power system, from generation to transmission and distribution. Grid modernisation, Fadillah said, is “non negotiable”, pointing to multi-year invest ments by Tenaga Nasional Bhd that incorporate AI-enabled planning, automation and battery energy storage. o Fadillah says artificial intelligence-powered measures will help ease pressure, drive decarbonisation and unlock green growth Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

Fadillah delivering the keynote address at the Global AI, Digital and Green Economy Summit 2025.

and integrity is assured. Malaysia’s voluntary carbon market, operated through Bursa Carbon Malaysia, has moved from concept to execution, with domestic nature-based credit auctions and updated market guidance already in place. The government will continue streng thening the market to crowd in private finance for verifiable decarbonisation projects, alongside renewable energy certi ficates and regional alignment on standards and taxonomies. At the same time, Fadillah cautioned against greenwashing, stressing that carbon credits, renewable certificates and “AI for good” initiatives must withstand independent scrutiny and full transparency. Looking ahead, he said the government is aligning policy, regulation and procurement to ensure AI becomes an enabler of grid resilience, digital infrastructure grows sustainably and decarbonisation projects reach financial close faster. Utilities were urged to prioritise projects that reduce curtailment and harden systems against climate risks, while financiers were encouraged to properly price integrity, resilience and speed to impact. “Malaysia’s direction is firm,” Fadillah said, adding that they are building a modern grid, a digital economy powered by trustworthy AI, and climate finance systems that deliver real world decarbonisation. The prize, he added, extends beyond emissions reduction to stronger energy security, new industries, better jobs and cleaner air, outcomes that will define whether technology truly serves as a catalyst for sustainable growth.

He added that outcomes, including faster grid connections, fewer bottlenecks and greater resilience against extreme weather must match ambition. “The grid must not only become larger, but smarter and more adaptive,” he said. Beyond domestic upgrades, regional integration remains a key lever. Fadillah cited the Laos-Thailand-Malaysia-Singapore Power Integration Project as proof that cross-border trade in clean electricity can work at scale, adding that similar arrangements should be expanded across Asean Power Grid corridors. Stronger interconnections, he noted, would lower system costs, smooth renewable variability and enhance energy security for participating countries. Within Malaysia, Sarawak was highlighted as a model for early leadership, leveraging its hydropower resources while advancing hydrogen initiatives and attracting interest from partners such as Japan and South Korea. “Early leadership de-risks new value chains for the entire nation,” Fadillah said. He also addressed the rising energy footprint of digital infrastructure, particularly data centres, as AI adoption accelerates. While such facilities are critical to the digital economy, he said, growth must be green by design. Malaysia has issued guidelines to improve data centre sustainability, with tighter expectations on power usage effectiveness, renewable energy sourcing and waste-heat recovery. Projects that fail to meet stringent efficiency and clean-energy thresholds, he warned, will not receive support. Turning to finance, Fadillah said, capital will only flow when risks are priced correctly