28/04/2026

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

SCAN ME

TUESDAY | APR 28, 2026

Malaysia’s push for energy efficiency pays off

Biodiesel an energy security buffer, not a permanent hedge: CIMB Securities KUALA LUMPUR: Biodiesel should be viewed as a supplementary energy security buffer, rather than a permanent or complete hedge against imported diesel risk, said CIMB Securities. In its Malaysia ESG Monitor: April 2026 report yesterday, CIMB Securities said biodiesel helps reduce reliance on imported diesel by leveraging Malaysia’s domestic palm oil supply, strengthening energy security, particularly during disruptions to key routes such as the Strait of Hormuz. “The government believes that an increase in biodiesel usage will help extend the availability of national diesel supply, sup ported by biofuel mitigation plans, phased upgrades of 20% biodiesel (B20) and B30 depots under the 13th Malaysia Plan, and preparations for a B30 mandate for the commercial and public transport sectors,” it said. CIMB Securities opined that wider adoption of higher blends (B20/B30) requires significant upgrades to storage, logistics, and distribution infrastructure, while com patibility across all diesel engines remains uneven. “In addition, biodiesel costs are linked to crude palm oil prices, which can be volatile,” it said. CIMB Securities added that infrastructure would be a critical factor in scaling up biodiesel in Malaysia, as higher blending mandates require more than just sufficient supply. “Malaysia’s B20 rollout remains limited to Langkawi, Labuan and Sarawak, and the government has previously indicated that about RM643 million is needed to expand B20 infrastructure nationwide,” the securities firm said. On April 14, 2026, the Malaysian govern ment announced that it agreed to raise the current 10% biodiesel B10 mandate for the transport sector to B15, beginning with an initial rollout of B12, as it seeks alternative fuel sources to support energy security amid the ongoing West Asia conflict. Meanwhile, CIMB Securities said the plastics industry faced an immediate impact due to the ongoing conflict in West Asia, as Asia’s petrochemical system is structurally dependent on Middle Eastern feedstocks, with around 60–70% of naphtha supply exposed to disruptions in the Strait of Hormuz. It noted any disruption in the strait would also affect about 16% of global oil products trade, with particularly severe implications for liquefied petroleum gas and naphtha. On April 17, the Malaysian Plastics Manufacturer Association said it expects the plastic manufacturing industry to remain volatile in the near-to-medium term due to oil price spikes driven by the West Asia conflict and supply disruptions. “This tightens petrochemical feedstock availability, leading to production delays, margin compression, and potential shortages and inflation across key downstream sectors, as resin prices have surged by over 100% to above US$1,500-2,000 (RM5,930-7905) per tonne with additional surcharges,” CIMB Securities added. – Bernama

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

o EMGS serves as cost-saving mechanism and strategic response to ongoing global challenges, delivers savings of RM39 million in 2025

KUALA LUMPUR: Malaysia’s push for energy efficiency is gaining traction, with initiatives under the Energy Management Gold Standard (EMGS) delivering esti mated annual savings of RM39 million, as Putrajaya ramps up efforts to cushion the impact of global energy supply disruptions. Deputy Natural Resources and Environ mental Sustainability Minister Syed Ibrahim Syed Noh ( pic ) said the savings, equivalent to 106 GWh of energy, were recorded in 2025 under EMGS, which operates within the Asean Energy Management Scheme. He said the initiative serves as both a cost saving mechanism and a strategic response to ongoing global energy challenges. “This programme recognises efforts to ensure energy savings in line with the current global energy crisis. Such re cognition acts as an encouragement for companies, government agencies and industries to participate actively,” he told reporters after officiating the EMGS certi fication ceremony yesterday. The programme, implemented locally by the Malaysian Green Technology and Climate Change Corporation (MGTC), has seen growing participation from cor porates and institutions seeking to improve energy efficiency while managing opera ting costs. In 2025 alone, a total of 133 organisations obtained EMGS certification. Of these, 22 received one-star certification, four were awarded two stars, while 107 secured three star certification, including renewals by organisations maintaining top-tier stan dards. Syed Ibrahim noted that the high number of three-star certifications signals a maturing ecosystem where organisations are not only

initiatives despite challenges such as budget constraints, and close collaboration between stakeholders. “Even with leadership and vision, without the participation of industry players, these initiatives cannot succeed. That is why collaboration across sectors, including banking, healthcare and manufacturing, is crucial,” he added. The EMGS initiative aligns with broader national frame works such as the National Energy Transition Roadmap,

adopting energy management practices but sustaining them over time. “This shows that organi sations are continuing good practices to retain their three star certification, reflecting strong commitment in energy management,” he said. In addition, five organisations were presented with special awards in recognition of ex ceptional commitment in imple menting EMGS practices at their facilities. To date, 205 organisations

the National Energy Policy 2022-2040 and the Energy Efficiency and Conservation Act 2024, all of which aim to strengthen Malaysia’s preparedness against energy shocks while advancing its net-zero ambitions. Syed Ibrahim said the government aims to expand participation further, encouraging more organisations to adopt structured energy management systems to drive both cost efficiency and sustainability. Separately, he said authorities are con tinuing to monitor environmental risks such as hotspots and open burning, stressing the need for public awareness and coordinated action among agencies to prevent incidents that could worsen environmental conditions. “Monitoring is ongoing, and enforcement will continue, but public cooperation is equally important to ensure such issues do not escalate,” the deputy minister said. Key insights from the trade mission are shortening supply chains by leveraging Hong Kong’s role as a gateway to the Greater Bay Area, reducing exposure to long-haul shipping volatility; tapping into the “waste-to wealth” sector to turn environmental com pliance into a profitable business pillar; and encouraging SMEs to build independent, direct networks with innovators rather than relying solely on external support frame works. Over 200 business matching sessions were conducted over the three days trade mission, with suppliers and customers from across China and Southeast Asia. By fostering these direct connections, Samenta is helping Malaysian SMEs move beyond original equipment manufacturer roles to become integral partners in the high tech, green-energy corridors of the future. “The RM 14 million in business is just a starting point. What is more important is to shift the mindset of our SMEs that we can be world-class players”, Ng said.

nationwide have participated in the EMGS programme, covering 601 assessments. The initiative has also contributed to significant environmental outcomes, including a reduction of more than 300,000 tonnes of carbon dioxide equivalent since its introduction in 2010. The deputy minister emphasised that energy efficiency remains a critical pillar of Malaysia’s climate strategy, given that the energy sector accounts for about 79% of the country’s total greenhouse gas emissions. “Efficient energy management is no longer an option but a necessity in facing the global climate crisis,” he said. Syed Ibrahim outlined three key principles underpinning the government’s approach: strong leadership and forward-looking policies, resilience in sustaining long-term

Samenta’s mission to HK nets RM14m on-site, potential sales PETALING JAYA: Against a backdrop of persistent energy crises and fragmented global logistics, Malaysian SMEs are value chain, transitioning from traditional, labour-intensive manufacturing to high-tech, sustainable production. “We are witnessing a proactive rather than reactive, noting that waiting for external support in a fast-moving economy is a recipe for stagnation.

recalibrating their growth strategies by looking closer to home. The Small and Medium Enterprises Association of Malaysia (Samenta) re cently concluded a land mark trade mission to Hong Kong, with the huge delegation of over 100 SME owners securing RM14 million in com bined on-site and pro jected sales. Supported by the Hong Kong Trade De velopment Council (HKTDC) and Matrade, the focus of the trade mission was on AI, robotics, auto mation and waste-to energy solutions – areas

structural shift in global trade,” noted Samenta national president Datuk William Ng. “The global landscape has changed; the tradi tional model of waiting for a favourable economic climate or government led paths is no longer viable given the highly volatile markets we are operating in. This trade mission demonstrates that when SMEs act with collective intent and agility, we can navigate even the most complex disruptions.” Ng emphasised that this is a once-in-a-decade

opportunity to reconstruct supply chains from the ground up. He urged SMEs to be

where China is leading globally. These sectors offer our SMEs a roadmap to move up the