KUALA LUMPUR: Malaysia is considering using nuclear energy generation as one of the country’s energy sources in the future, said Economy Minister Rafizi Ramli. He stated that the responsibility for this is being carried out by the Ministry of Energy Transition and Water Transformation (PETRA) and the Ministry of Science, Technology, and Innovation (MOSTI) to ensure that the legal framework and regulations are developed for this purpose.
According to BERNAMA News Agency, Rafizi mentioned that since the decision has been made at the National Energy Council level and endorsed by the Cabinet, the 13th Malaysia Plan (13MP) will officially include the possibility of nuclear energy as one of the energy sources in the country. This announcement was made after an industry dialogue held in conjunction with the National OGSE Blueprint Forum 2024. Rafizi further emphasized that a strict legal and regulatory framework would be needed at the initial stage of nuclear sector development, including compliance with internatio
nal regulations.
He noted that there is a long list of international compliance requirements that must be met before embarking on nuclear energy. The details of how the power sector will participate in nuclear energy will likely be decided and regulated by the Energy Commission. This regulatory framework is essential to ensure that all safety and compliance standards are met.
Meanwhile, Rafizi addressed the issue of private banks, including CIMB Group Holdings Bhd, which will stop financing oil and gas companies. He acknowledged that financial institutions, particularly private ones, face pressure to align their loan portfolios with green economic activities. If banks are seen as insufficiently funding green economy programs while supporting projects perceived as harmful, such as oil and gas, it explains why institutions like CIMB are taking action. Rafizi stated that the oil and gas industry remains a strategic sector in Malaysia.
He also mentioned that the government needs to ensure sufficient financing
through private banks or government financial institutions, even though some decisions from private banks are based on their strategies. Rafizi plans to discuss with banks to understand how they intend to address these conflicting demands on behalf of the oil and gas players.
In July, CIMB Group Holdings Bhd announced its plan to reduce the Financed Emissions Lending Intensity (FELI) of its oil and gas portfolio by 16 per cent by 2030. This plan covers Scope 1, 2, and 3 emissions from upstream and integrated oil and gas companies. Additionally, starting January 1, 2025, CIMB will halt new financing for upstream oil fields approved for development post-2021, in line with the International Energy Agency’s (IEA) guidelines.
Earlier, Rafizi launched the OGSE Strategic Partnership Facilitation Service and the National OGSE Sustainability Framework Guide. The one-day forum was organised by the Malaysia Petroleum Resources Corporation.