Kuala lumpur: Malaysia's energy industry players should focus on developing more bankable projects with attractive and sustainable returns to strengthen the country's energy transition financing landscape and attract greater investor participation. Tenaga Nasional Bhd (TNB) chief new energy officer Mohd Zarihi Mohd Hashim emphasized the importance of equity capital, noting that equity investors provide patient capital and are willing to take on risks, although many remain on the sidelines. Patient capital refers to a long-term investment approach.
According to BERNAMA News Agency, Mohd Zarihi highlighted during a dialogue session at the Energy Transition Conference 2026 (ETCon26) that to attract greater participation at scale, there is a need to develop more bankable projects that offer attractive and sustainable returns. He stated that this is crucial for accelerating progress and mobilising the capital needed to achieve Malaysia's energy transition goals. The dialogue, titled 'Financing Tomorrow: Innovative Capital Models for Energy Transition', underscored the importance of innovative capital models in advancing Malaysia's energy transition, especially as the country undertakes larger and more complex projects.
Mohd Zarihi mentioned initiatives such as the ASEAN Power Grid and the development of new renewable energy sources, which will require more risk-sharing and closer collaboration among policymakers, project developers, and financiers. He called for all stakeholders to work together to enhance project bankability, ensure sustainable returns, and mobilise investment necessary for achieving the desired energy transition outcomes.
Bank Negara Malaysia (BNM) sustainability deputy director Suraya Sani, also present at the dialogue, stressed that regulations and policy frameworks play a foundational role in supporting the financial system's participation in the energy transition and are critical to its success. She shared that BNM, in collaboration with the Securities Commission Malaysia (SC), has developed sustainable finance taxonomies to assist financial institutions and businesses in their investment and financing decisions.
Suraya Sani added that under the Joint Committee on Climate Change (JC3), a Malaysia taxonomy is being developed to guide investors and financiers in making informed investment decisions. This effort is complemented by initiatives such as the Sustainable and Responsible Investment (SRI) Taxonomy and BNM's Climate Change and Principle-based Taxonomy (CCPT), which provide frameworks for assessing economic activities based on their environmental impact.
ETCon26, themed "Energy and AI: The Synergy for Energy Transition", is being held from June 3 to 5 at the Kuala Lumpur Convention Centre. The conference features more than 50 exhibitors and 80 speakers from the energy and technology sectors, with over 4,000 delegates from more than 60 countries attending. The event serves as a platform to accelerate the implementation of Malaysia's energy transition agenda and foster regional collaboration on sustainable energy solutions.