Kuala lumpur: Malaysian Gas Association (MGA) has called on the government to strengthen fiscal support and incentives for the natural gas industry in Budget 2026, and to act on three immediate priorities for the industry. In a statement today, MGA said only then can the industry sustain its contribution to the economy while helping Malaysia accelerate its energy transition and safeguard energy security.

According to BERNAMA News Agency, MGA president Abdul Aziz Othman emphasized the need to reinstate full eligibility for cogeneration systems under the green investment tax allowance (GITA) to restore alignment with the National Energy Transition Roadmap (NETR) and support energy-efficiency technology. The second priority highlighted is the strengthening of incentives for biogas and biomethane, including capital expenditure support and higher tax exemptions for service providers to enhance their role in Malaysia's renewable energy mix.

The third priority involves recognizing low-carbon marine fuels, such as liquefied natural gas (LNG) bunkering, as a strategic investment sector. This includes backing by structured incentives and a clear regulatory framework to enhance Malaysia's port competitiveness. MGA stressed the urgency of these measures, especially as Malaysia is set to chair ASEAN in 2025.

MGA pointed out that the sectors in question, while not headline-grabbing, are strategic investment areas with significant potential to reduce emissions, drive economic benefits, and boost Malaysia's regional credibility. The association noted that other ASEAN nations are already advancing based on their strengths, such as Singapore's LNG bunkering trials and Vietnam's rapid growth in renewable energy. Malaysia, MGA warned, cannot afford to remain stagnant in this competitive landscape.