05/05/2026

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TUESDAY | MAY 5, 2026

Malaysia urged to expand green finance, tech capacity

KUALA LUMPUR: Malaysia must expand green finance, strengthen local technology capacity, as well as broaden participation across sectors and regions to fully leverage the global shift towards sustainability and turn climate risk into a competitive edge in green value chains. In its recently published Country Climate and Development Report, the World Bank said significant barriers – such as low research and development investment, workforce skills gaps and weak industry academia collaboration risk limiting innovation – remained as Malaysia accelerates its national green transition. “While Malaysia has introduced green policies and fiscal tools, domestic private sector investment remains cautious, and innovation ecosystems are still developing. To drive this transformation further, Malaysia should also invest in sustainability-linked services and knowledge-based sectors,” the bank said in the report. The World Bank noted that global demand for activities, backed by strong environmental, social, and governance (ESG) standards, is rising, and green finance, climate risk analytics, sustainable certi

single year, making climate resi lience an economic imperative,” said the World Bank. It added that adaptation measures could offset up to half of Malaysia’s projected climate-related economic losses, with tackling heat stress a key strategy. The World Bank said raising air conditioning coverage in work places from 42% to 75% by 2050 could significantly preserve labour productivity at a modest annual cost of US$40 million (RM158.8 million). “However, broader action is needed. Climate-resilient land use plans could reduce flood and landslide risks, while climate-smart agriculture and integrated water resource management would help to sustain food and water security,” it added. – Bernama

up to 8.3% of its gross domestic product (GDP) by 2050 under the most pessimistic scenario, with larger losses possible. It added that half of the predicted costs of climate change have already been realised in lower GDP figures, with crop losses, flooding, and heat related productivity declines being major drivers of projected economic losses. World Bank said agriculture alone could see up to 18% of its production value eroded by mid century, and these cascading im pacts would reverberate across society, affecting business conti nuity, employment, health out comes, and the broader stability of the economy. “If a one-in-20-year flood were to hit following an extended heatwave, GDP losses could exceed 20% in a

o Country should also invest in sustainability linked services and knowledge-based sectors, says World Bank

At the same time, the bank said rural and smaller states must be enabled to benefit from low-carbon growth, whether through green agro-processing, circular economy ventures, or eco-tourism. It added that supporting small and medium enterprises, investing in regional innovation hubs, and empowering local governance would ensure Malaysia’s green transition is inclusive, resilient, and a foundation for shared prosperity. The World Bank said climate change is expected to cost Malaysia

fication and environmental auditing are emerging as growth areas. It added that Malaysia has a competitive edge in the ESG, thanks to its mature financial sector, digital infrastructure and multilingual workforce. “Building capabilities in these high-value services will diversify exports and embed sustainability across supply chains,” the World Bank said, adding that states like Penang and Selangor could become green industrial clusters, drawing sustainable investment and talent.

We must capitalise on West Asia crisis to rethink economic model, says Fernandes PUTRAJAYA: Malaysia should seize the ongoing West Asia crisis as an opportunity to rethink its economic model and enhance long-term growth, said Capital A Bhd CEO Tan Sri Tony Fernandes. He said global supply disruptions, particularly involving key routes such as the Strait of Hormuz, could have prolonged economic effects on the country, underscoring the need for Malaysia to remain resilient. “Malaysia has done well diplomatically, but this crisis is an opportunity to rethink our economic model, from subsidies to energy to productivity,” he said at the “Malaysia’s Strategic Position in a Turbulent Global Economy” forum here yesterday. Fernandes said that to achieve and maintain growth, the country must make difficult decisions, especially regarding subsidies. “We need to move away from this subsidy mentality. The billions spent on subsidies could be redirected into more productive industries, industries that create jobs, drive growth, and strengthen the economy,” he said. Fernandes also said the current situation presents an opportunity to reassess energy security.“I am a strong advocate for nuclear energy; the safety concerns are outdated, technologies like small modular reactors are much safer, and Malaysia should aim for energy independence.” About the aviation sector, Fernandes said the current crisis, driven by surging energy prices and supply disruptions, is more severe than the Covid-19 pandemic. Fernandes said airlines are facing significant cost pressures after jet fuel prices rose sharply from about US$85 (RM336) per barrel to between US$180 and US$240. “I have been talking to the government about extending credit so that we can catch up, because obviously we have to increase fares, but that takes time to reflect the oil costs we have already paid for,” he said. – Bernama

Wan Agyl (front, left) and Selat Abadi managing director and Berjaya Rail CEO Farizul Hazli Baharom (front, right) exchanging the signed MoU, witnessed by (from left) Mara Liner chairman Datuk Mohd Sumali Reduan; UniKL Resources Sdn Bhd chairman Datuk Dr Budiman Mohd Zohdi; Mara director-general Datuk Zulfikri Osman; Pelaburan Mara Bhd senior director Dr Azmi Amat Murjan; and Mara Corporation Sdn Bhd acting group CEO Datuk Amir Azhar Ibrahim.

Berjaya, Mara Liner to drive mobility transformation KUALA LUMPUR: The Berjaya group of companies via two of its subsidiaries, Selat Abadi Sdn Bhd and Berjaya Rail Sdn Bhd, has entered into a landmark strategic partnership with Mara Liner Sdn Bhd aimed at driving mobility transformation while advancing national localisation efforts and empowering Bumiputera participation in mobility and rail ecosystem. facturing supply chains and maintenance, repair and overhaul services. 0 Talent development and Technical and Vocational Education and Training integration: Leveraging Mara’s educational network, Berjaya will develop specialised industrial training programmes to create a “future ready” workforce for emerging sectors such as green technology and digital services. about building a resilient, self-sustaining Malaysian economy.”

Meanwhile, Mara Liner CEO Wan Agyl Wan Hassan said, “This synergy with a global conglomerate like Berjaya ensures that six decades of Mara’s nation-building legacy are not only honoured, but accelerated. For sixty years, Mara has developed Bumiputera talent, enterprise, and opportunity across genera tions. Today, Mara Liner carries that mandate into the future of mobility industrial services. This partnership provides the industrial framework, supply chain access and com mercial strength needed to ensure that Malaysia’s next phase of transformation is one in which Bumiputera participation is meaningful, competitive and sustainable”. The initiative is expected to commence with a joint pilot programme on centralisation and digitalisation of the maintenance, repair and overhaul service regime scheduled for the third quarter of 2026.

A memorandum of understanding was signed by Selat Abadi and Mara Liner during the Majlis Amanah Rakyat’s (Mara) 60th anniversary carnival held at the World Trade Centre Kuala Lumpur. This collaboration aligns with the Bumiputera Economic Transformation Plan 2035 and Berjaya’s commitment to streng thening domestic supply chains. The partnership will focus on three key pillars: 0 Supply chain localisation: Berjaya will work with Mara Liner to identify and integrate high potential Bumiputera vendors into its manu

0 Entrepreneurial scaling: Supporting Mata’s goal of listing Bumiputera companies on Bursa Malaysia, Berjaya will provide mentorship and market access to accelerate the growth of small and medium enterprises within the Mara ecosystem. Explaining the background of this initiative, Berjaya Corporation Bhd founder and adviser Tan Sri Vincent Tan Chee Yioun said, “By combining Berjaya’s diverse industrial expertise with Mara’s deep talent pool, we are creating a powerful engine for local economic growth. This is not just about business, it is