PETALING JAYA: The recently unveiled National Policy on Climate Change 2.0 (NCCP 2.0) is expected to have a wide-ranging impact on several sectors in Malaysia.
According to TA Research, the automotive, energy, manufacturing, agriculture, plantation and property, waste management, financial and building materials sectors will be among the most impacted by the policy aimed at facilitating the country’s transition towards a low-carbon economy and climate-resilient development, as well as operationalising the Paris Agreement at the domestic level.
The brokerage noted that in the automotive sector, the NCCP 2.0 is expected to encourage the increasing switch to hybrid or electric vehicles (EVs).
The government has stated its goal to have EVs comprise 15% of the total industry volume (TIV) by 2030 and 80% by 2050, based on the low carbon mobility blueprint and the National Energy Transition Roadmap (NETR).
TA Research said the new NCCP 2.0 will continue to benefit non-national brands and companies that already have in the pipeline. These include Sime Darby Bhd
, MBM Resources Bhd and Bermaz Auto Bhd.
Further, manufacturers involved in EV charging equipment will also benefit in tandem with the increasing demand for EVs.
These include Pestech International Bhd, Khind Holdings Bhd, Nexgram Holdings Bhd, ACO Group Bhd, JHM Consolidation Bhd and Amtel Holdings Bhd.
The NCCP 2.0 is also expected to provide new growth opportunities for power and utility companies in the renewable energy (RE) segment.
In particular, TA Research noted, RE engineering, procurement, construction and commissioning players such as Samaiden Group Bhd, Solarvest Holdings Bhd, Sunview Group Bhd and Pekat Group Bhd, while asset owners such as Tenaga Nasional Bhd stand to gain from increased grid investments and demand for RE generation capacity.
Food manufacturers such as Nestle (M) Bhd, Farm Fresh Bhd, Spritzer Bhd, Dutch Lady Milk Industries Bhd and Fraser & Neave Holdings Bhd are expected to increase their investments in technology to achieve sustainability goals.
Similarly, agriculture companies such as Farm Fresh, Leong Hup Holdings Bhd, CAB Cakaran Corp Bhd, Lay Hong Bhd, QL Resources Bhd and CCK Consolidated Holdings Bhd are expected to integrate sustainable practices into their operations, leveraging sustainable farming innovations to mitigate regulatory risks.
In the plantation and property sector, TA Research said IOI Properties Group Bhd has adopted the the low carbon cities framework and the national low carbon cities masterplan into its developments, embedding green features, resource efficiency, and emissions reduction measures across its projects.
“While specific frameworks were not disclosed, Sunway Bhd, SP Setia Bhd, Sime Darby Property Bhd and Mah Sing Group Bhd have also integrated emission-reduction strategies within their township and urban planning initiatives,” the brokerage noted.
In the waste management sector, prominent player Cypark Resources Bhd (not rated) could take the lead by implementing innovative solutions aimed at minimising landfill waste and harnessing methane for energy production, thereby positioning the groups advantageously for regulatory compliance and potential carbon credits, TA Research said, adding IOI Corp Bhd is another company to benefit from its methane capture plant operations.
In the financial sector, banking group such as CIMB Group Holdings Bhd, Malayan Banking Bhd, Public Bank Bhd, Alliance Bank Malaysia Bhd and RHB Bank Bhd are expected to continue to make progress in the area of sustainability finance.
Meanwhile, industries such as cement, steel and chemicals will be required to reduce emissions from their manufacturing processes as part of Malaysia’s broader decarbonisation strategy.
“To align with these goals, these sectors are expected to invest in cleaner technologies, transition to low-carbon materials, and implement emission-reduction techniques such as carbon capture and storage. This shift will also support efforts to curb other greenhouse gases, including methane and nitrous oxide,” TA Research said.
As such, it noted building material players, such as Ann Joo Resources Bhd and Malaysia Steel Works (KL) Bhd have been proactively initiating various measures to reduce carbon emissions, including participating in solar photovoltaic projects and installation of newer technology to reduce natural gas consumption.
