Roadmap to a Greener Malaysia

The Launch of the National Green Technology Policy

In an effort to transform Malaysia into a world class hub for green technology and to ensure Malaysia contributes its part to reduce the impact of global warming, the Prime Minister, Datuk Sri Mohd. Najib bin Tun Haji Abdul Razak, has restructured the Ministry of Energy, Water and Communications to form the Ministry of Energy, Green Technology and Water (KeTTHA) when he announced his Cabinet on the 9th of April. After much planning, discussion and deliberation, the National Green Technology Policy was finally launched on the 24th of July, documenting the government’s objectives and strategies to drive the development of the nation’s green technology sector.

In conjunction with the launch of the policy, the Prime Minister also launched the country’s first Green Energy Office (GEO) - the Malaysian Energy Centre (PTM), a leading research institution on sustainable energy solutions and quality energy policy research. The building, located in Bangi, utilises the latest green technologies such as the Building Integrated Photovoltaic (BiPV) System, rain water harvesting and other energy efficient concepts to ensure it uses only 25 to 30 kWh/m2 year of energy. The Green Energy Office is also officially the first building in Malaysia to be certified by the Green Building Index (GBI), which is developed by the Pertubuhan Arkitek Malaysia (PAM) and the Association of Consulting Engineers Malaysia (ACEM).

In the following pages, Technology Business Review gives you a quick summary of the launch as well as a brief insight into the objectives and strategies of the policy.

An Overview
                
Many countries, such as Germany and Sweden in Europe, and in South Korea and Singapore in Asia, have embarked on an active pursuit of innovating and developing green technology. Recognising the new opportunities offered by this particular sector, the Prime Minister has also envisioned a greener Malaysia where green technology is a vital instrument for the economic growth of the country and the development of a knowledge society, which would encourage a sustainable and better way of living as well as doing business.

In his foreword in the policy book, Datuk Sri Najib stressed that the Ministry of Energy, Green Technology and Water was established on that concept. He pointed out that Malaysia can no longer ignore two of the world’s most critical issues – climate change and energy security but that Malaysians must now collectively and effectively address these issues to ensure Malaysia’s continuous economic growth and stability.

The Minister of KeTTHA, Datuk Peter Chin Fah Kui, concurred, stressing that Malaysia is not exempted from the threat of global warming. He said Malaysia is actively participating in finding solutions to address the problems of climate change and depleting resources. “Thus, the National Green Technology Policy is a testament of the government’s commitment towards using environmentally sound and sustainable policies and solutions to drive the Malaysian economy forward and to enhance the quality of life of all Malaysians,” Datuk Peter said in his speech during the launching ceremony.

Drafted by KeTTHA, the National Green Technology Policy seeks to provide a clear and cohesive plan for the government to guide the country towards a cleaner and greener future. It is then the hope of the Prime Minister to see the establishment of ‘Green Communities’ throughout the country, where Malaysians live in a clean, healthy and high quality environment built on the fundamentals of green technology.

Green Ambitions

Based on the premise of enhancing the utilisation and advancement of green technology to accelerate economic development in a sustain-able manner, Datuk Peter said the policy is a holistic one, founded upon four main pillars – Energy, Environment, Economy and Social – on which the main objectives of the policy were established.

First of all, in the area of Energy, the government’s main priority is to reduce its dependency on fossil fuels by seeking to attain energy independence and promote efficient utilisation of energy. Through the development of green technology, the government expects to reduce energy consumption while enhancing economic development.

Secondly, with regards to the Envi-
ronment, the government, through the policy, hopes to ensure the conservation and protection of the
natural environment and resources as well as to promote mitigation measures through the use of green technology that will lessen the environmental impact of indus-trialisation and development. This is so as to ensure the sustainable development and conserve the environment for future generations.

Next, for the pillar of Economy, the government also seeks to enhance the country’s economic development through the use of technology. Specifically, the policy also address-es the need to increase Malaysia’s capability and capacity for innovation in green technology development and subsequently enhance the country’s competitiveness in the global arena. Only then will the green gechnology industry be able to develop and contribute significantly to Malaysia’s GDP.

And lastly, on the social aspect of the country, the government hopes to improve the overall quality of life for Malaysians through the use of green technology. In order to achieve this, the government will have to step up its measures to enhance public education and awareness on green technology and encourage its widespread adoption.

A Green Plan

The government has identified five strategic thrusts in an effort to make the greener Malaysia aim become a reality, which will be implemented in three phases to meet different goals. The short term goals of Phase 1, which will be carried out during the 10th Malaysia Plan, include increasing public awareness, attracting and increasing foreign and domestic direct investments (FDIs and DDIs) as well as expanding the scope of research and development (R&D) oo green technology in universities and research institutes.
Phase 2 will be implemented during the 11th Malaysia Plan, and by this period, the government expects widespread adoption and application of green technology across all economic sectors. The government also hopes to see an increase in the local production of green technology innovations and through this, green technology will then acquire a larger local market share against other technologies, contributing to the adoption of green technology in regional markets.    

In Phase 3, which will take place during and beyond the 12th Malaysia Plan, the government expects the use of green technology to be deeply entrenched in society and the industry, to see a significant reduction in national energy consumption as well as an improvement in Malaysia’s rankings in terms of environmental ratings and that Malaysia becomes a major producer of green technology in the global market.

A comprehensive blueprint to propel Malaysia towards a greener future, the National Green Technology Policy is an excellent guideline for the government to track and measure its success in implementing the strategies specified in the policy. The policy, which will, of course, continue to evolve in time, clearly demonstrates the serious commitment of the Government to address the issue of global warming and the shift to alternative energy sources. With the support and cooperation of all stakeholders – the Government, corporate sectors and the citizens – Malaysia is firmly on track in its aspirations to become a leading global hub for green technology.

Towards Green Cooperation

South Korea President calls for a green, free trade Asia

South Korea will work with ASEAN countries from now on to expand our cooperation in various areas that will include the development of renewable energy to environmentally friendly technology and forestation projects. Regional cooperation and integration are no longer a luxury, but a necessity."

- Lee Myung-bak,
President of South Korea

Among the two pillars of East Asia's economy, Japan and the Republic of Korea, it is possibly the latter which has been the most forward-thinking. At the recent ASEAN-Republic of Korea Commemorative Summit on the 1st to 2nd of June, South Korea’s President Lee Myung-bak called on ASEAN countries to foster closer ties in the area of green business, which he has called a "green partnership". Moreover, as a sign of its commitment to green business, he also announced on the 5th of July that South Korea will invest US$85b in green industries over the next five years. Technology Business Review takes a look at the plans that South Korea's President have in mind and what the responses are from ASEAN leaders.

The next stage

In recognition of the 20th anniversary of the dialogue process that has fostered greater cooperation and understanding among South Korea and ASEAN, President Lee told the leaders at the summit that Korea and ASEAN are poised to enter into a new era of partnership and collaboration. Calling it the “green partnership”, Lee declared this in view of his new vision for Korea, which is called the “Low Carbon Green Growth Initiative” and a follow up to the East Asia Climate Partnership, which he proposed at the G8 summit in 2008.

Acknowledging that the negative effects of climate change are accelerating at a critical pace, and recognising that Korea has also contributed to the problem with its over-reliance on fossil fuels, Lee said that Korea is aiming to increase investments in developing new sources of clean energy and technologies. He also urged leaders and policymakers from both the public and private sectors in ASEAN to join with Korea to take advantage of the “green opportunities” available to advance each other’s economies and spearhead global environmental change in this region.

“If we bring Korea’s green technology which is a fusion of ICT, biotechnology and nuclear technology, together with ASEAN’s limitless opportunities for green growth, we can move a step closer to realising our common vision of creating ‘low carbon smart cities’,” Lee shared in his keynote speech at the ASEAN-Korea CEO Summit. He also added that the East Asia Climate Partnership will strengthen this green partnership and will be an ideal platform to discuss 
concrete measures.

To facilitate this objective, Lee asserted that Korea and ASEAN should also collaborate in various research activities to enhance and drive the development of green technologies and other forms of alternative energy. He stressed that by bringing together the collective resources, the best ideas, and the most skilled researchers and providing world class facilities from ASEAN and Korea, it is possible to accelerate the progress of innovations in the 
green industry.

The ASEAN-Korea 
Free Trade Agreement

Furthermore, Lee also mentioned that the ASEAN-ROK Free Trade Agreement will play a vital role in facilitating “green growth”. The FTA seeks to create an investor-friendly environment that promotes and encourages further trade relations between Korea and ASEAN, specifically the Agreement in Investment. This was the final piece of the puzzle following a series of other FTA agreements signed in 2006 and 2007. This agreement to bolster investments was welcomed by ASEAN member nations and was successfully signed at the end of the two-day summit in Jeju Island by Korea and the trade ministers 
of ASEAN.

With the ASEAN-ROK FTA now in full force, this will enable the enhancement of various collaborations on all economic fronts, including trade, investments, labour, construction and technology transfer. Through the FTA, both
Korea and ASEAN expect trade to double to US$150b by 2015. The area of green business will certainly be given more focus in the effort to work together to become pioneering leaders in the new growth sector of green business and transform the region into a global green research hub that introduces new innovations and make green ideas into a reality.

Additionally, in a joint-statement following the signing, the ASEAN trade ministers said the FTA will also help create and foster a stronger, more resilient Asian bond market that would allow the region’s savings to be utilised to fund development and spur greater growth. There are also moves to expand ties in the energy sector as well as to address energy prices, climate change and the need for environmental protection.

ASEAN heeds the clarion call

Various decision makers, corporate leaders and industry groups from ASEAN, Korea and the international community generally welcomed Lee’s plan and vision to strengthen partnerships between the regional grouping and Korea. They also agreed that the emerging trend of green business has offered vast, new opportunities for growth and they should act quickly to seize the moment and not let it pass.

ASEAN Secretary-General Surin Pitsuwan said he considered South Korea’s role in Asia, especially ASEAN, very important, and praised Lee for touching on the need for greater and more effective green collaborations. This was reflected in his words, “President Lee has raised the important issue of a need for countries to pursue environmentally friendly development.”

Angela Cropper, the Deputy Executive Director of the United Nations Environment Programme (UNEP) also expressed her support for Lee’s call for a joint green growth strategy, suggesting that the development of clean energy, green cars and green buildings as the main focus areas for green growth. She went on to urge each country to reform its budget and streamline its resources to develop the technologies required to meet that aim.

On the sidelines of the summit, Malaysia’s Prime Minister, Datuk Seri Najib Tun Abdul Razak confirmed Malaysia’s support of Lee’s “green vision”. He also mentioned that he was most interested in the development of low-carbon green technology, which was developed by South Korea, because it was in line with his agenda and thinking with the creation of the Green Technology ministry.

“I have decided to instruct the Minister of Energy, Green Technology and Water, and the Minister of Science, Technology and Innovation to visit Korea as soon as possible and study the green technology and how it can be adapted to meet Malaysian needs,” Datuk Seri Najib said.

Hun Sen, the Prime Minister of Cambodia, said his government is “willing to discuss and explore further about the green partnership” while the Philippines was one of the first to sign “green partnership” agreements with Korea to help the former reduce greenhouse gas emissions.

Two agreements were signed, one involving Korea helping the Philippines to nurture experts and build a strong infrastructure to implement measures to address climate change and another agreement involves the active exchange of information on Clean Development Mechanism (CDM) projects. Announced by Korea’s Ministry of Knowledge Economy, the latter agreement is significant because of the business interests of Korean companies in CDM markets. Thus, the two countries are expecting to uncover many more opportunities for further cooperation.

South Korean President Lee Myung-bak’s “green partnership” proposal has certainly created a buzz of excitement among the ASEAN community who have expressed their interest in the concept and to strengthen partnerships with Korea in tackling climate change issues and developing the green technology industry. As Korea is expecting to become a niche global player in the green technology market with its US$85b investment in green technology over the next five years and with the signing of the ASEAN-ROK FTA, this is an opportune time for ASEAN to step up its drive to attract Korean investors and experts to the region to further develop each country’s green sector.