16/12/2025

BIZ & FINANCE TUESDAY | DEC 16, 2025 15 Call to treat energy transition as economic growth strategy

PETALING JAYA: MISC Bhd and China Offshore Engineering & Technology Co Ltd have received approval-in-principle (AiP) from the American Bureau of Shipping (ABS) for their pioneering design of an ammonia floating production storage and offloading (FPSO) unit on Dec 2 during Marintec 2025 in Shanghai, China. The innovative floater solution adapts proven onshore production technology for offshore operations, transforming unutilised hydrocarbon gas from nearby offshore facilities into high-value blue ammonia, which is stored onboard at cryogenic conditions. The standalone facility provides a viable pathway for upstream developers to monetise gas that would otherwise be reinjected, strategically shortening the ammonia supply chain and improving its well-to-gate carbon emission profile. MISC president and group CEO Zahid Osman said, “The ammonia FPSO concept is aligned with MISC’s commitment to #deliveringProgress and accelerating the pathway to deliver more energy with less emissions. This new concept is a result of strategic collaboration that drives impactful change that is needed in our industry. By adapting a proven onshore technology for offshore use, we are not just creating a new concept, we are supporting the offshore industry to achieve its lower carbon ambitions.” ABS senior vice-president, global offshore, Miguel Hernandez said ABS is proud to share its deep insight into the safety challenges of ammonia, along with its extensive technical expertise on complex floating production facilities. The ammonia FPSO will receive feed gas from a nearby host facility, such as an oil producing FPSO. Once storage is near capacity, GENEVA: Energy transition, including the development of sustainable aviation fuel (SAF), should be treated as an economic growth strategy by Asia-Pacific governments rather than an aviation-specific issue, according to the International Air Transport Association (IATA). IATA chief economist Marie Owens Thomsen said the region risks missing out on one of the few real growth strategies available today if policymakers delay investments in renewable energy, feedstock production and SAF capability. “We have always depended on mobility and energy for economic progress. Aviation does not just contribute to gross domestic product but also increases the rate of growth. “That catalytic impact makes the energy transition a proper growth strategy for countries,” she said in an exclusive interview with Bernama at IATA’s Global Media Day 2025 held here recently. The topic of energy transition and the scaling of SAF took centre stage during the media briefing. She also said governments worldwide have exhausted traditional economic tools such as low interest rates and fiscal space, leaving the energy transition as a rare opportunity to drive long-term productivity. “There aren’t many real growth strategies left. Countries are over-indebted, interest rates cannot be lowered further, and taxes are already high. “All the traditional policies are pretty much maxed out. So, I would say the most amazing growth strategy is to really engage with this energy transition. With the energy transition, you can improve your agriculture to produce feedstocks, and you can democratise energy grids. We obviously want more wind, solar or any kind of renewable energy so that all industries can decarbonise, and then ours (aviation) as well,” she explained. According to IATA’s Global Feedstock Assessment for SAF Production – Outlook to 2050, the transport industry will require approximately 500 million tonnes of SAF in

o IATA chief economist warns Asia-Pacific countries against delaying investments in renewable energy and sustainable aviation fuel capability

depend on stronger policy coordination and clearer regulatory pathways. “The feedstock, capital and technology already exist. With the right policy frameworks, these elements can come together to unlock SAF production at scale,” she said. She noted that feedstock types differ across countries, with some suited to bio-SAF and others to power-to-liquid (eSAF), depending on land, wind and solar availability. She stressed that each country could build a pathway suited to local conditions. “This is something every country can do to varying extents. The question is whether governments want to engage in these market building conversations. If not, what is their alternative growth strategy?” she said. Thomsen emphasised that SAF production cannot be accelerated in isolation and must be part of a broader national energy plan. She warned Asia-Pacific governments against focusing narrowly on industrial policies or digital projects at the expense of foundational energy investments. “Energy is literally what drives our economies. We need cheap, sustainable and readily accessible energy for everybody. Once

2050 to achieve net zero carbon dioxide emissions. In 2025, global SAF production is estimated at just two tonnes. While every region could generate biomass feedstock for SAF production, some countries and regions are emerging as hotspots. China and Asean, particularly Indonesia and Malaysia, are also expected to emerge as critical feedstock hotspots. Together, these countries would account for approximately 240 tonnes of biomass feedstock for SAF production by 2050, representing about 15% of the global total. These countries have existing biofuel industries and offer substantial potential for producing SAF from biomass. In Malaysia, the government has launched and sped up the New Industrial Master Plan, National Energy Transition Roadmap, Hydrogen Economy and Technology Roadmap as well as the Malaysia Aviation Decarbonisation Blueprint to achieve net zero carbon emissions by 2050. Although the region holds significant resources and potential, Thomsen noted that Asia-Pacific’s progress in developing SAF will

Thomsen says aviation does not just contribute to gross domestic product but also increases the rate of growth. – BERNAMAPIC that is in place, you can make renewable fuels and, at the end of that chain, renewable aviation fuel,” she said. IATA estimates that the average yearly investment needed to secure airlines’ use of SAF and meet most of the industry’s decarbonisation needs is US$174 billion (RM713.4 billion) over the 2024-2050 horizon. New investors can now access ASM 3 through TNG eWallet PETALING JAYA: TNG Digital Sdn Bhd, the operator of TNG eWallet, Malaysia’s leading digital financial services and lifestyle app, is expanding access to Amanah Saham Malaysia 3 (ASM 3) as one of Amanah Saham Nasional Bhd’s digital agents, enabling new investors to access ASM 3. In a statement yesterday, it said, this partnership makes it easier for first-time investors to begin their investment journey on GOfinance within TNGeWallet, where they can access ASNB funds in a simple and convenient way starting from RM10. GOfinance is designed as a financial services hub for all Malaysians, especially beginners. New ASNB users can register their ASNB accounts and start investing directly in TNG eWallet. They can then manage and monitor their investments easily through features such as: access to existing ASNB account information; access to ASNB Bijak (dependent) account details; subscription to new funds; investment in existing funds and setting up automated weekly or monthly recurring investments via Auto Labur. TNG Digital said new ASNB users will receive a guaranteed RM3 cashback when they subscribe a minimum of RM100 in ASM 3 in a single transaction during the campaign period. The campaign has now been extended to Dec 31, 2025. For this campaign, ASM 3 subscriptions on TNG eWallet are capped at RM1,000 per user. ASNB has allocated RM118 million in ASM 3 for new investors. ASM 3 is a fixed price fund with long-term appeal and unit availability is limited, based on a first-come, first-served basis.

MISC and China Offshore get ABS approval in principle for ammonia FPSO concept

From left: ABS Greater China Engineering director Wang Binhong, China Offshore engineering director Ni Mingjie; MISC capital project director Tang Shengtao and ABS Greater China operations director Chen Hui.

The facility is designed for an annual production capacity of 1 million tonnes of liquid ammonia. The initiative is jointly developed by MISC and China Offshore. Both parties work in collaboration with ammonia technology licensors Kellogg Brown & Root and LNT Marine for the ammonia cargo containment design. ABS is appointed by the consortium to provide independent review and validate the project’s technical feasibility and safety.

the liquid ammonia can be directly exported to liquid ammonia carriers (LAC) in tandem. The topside plant utilises a robust, modular design, capable of processing varying feed gas specifications to produce clean ammonia with 99.8% purity. The project is currently in the pre-feed study phase, which includes a thorough assessment of capital and operating expenditures, and is scheduled for completion in first quarter 2026.