As home to high-tech industries, Malaysia will need a balanced approach between producing more power and clean energy.
MALAYSIA has ambitious goals for tackling climate change, setting a plan to achieve net zero carbon emissions by 2050 – a feat that even some developed nations have yet to attempt.
But reaching this target will not be straightforward, especially as Malaysia relies heavily on high-tech industries, such as semiconductor manufacturing and a growing data centre sector, to drive economic growth.
A 2022 report by the Malaysian Institute of Certified Public Accountants and KPMG Malaysia highlights significant challenges, including the complexity of decarbonising supply chains, high costs, and a lack of skills and suitable technology.
Despite these hurdles, Malaysia’s efforts have piqued the interest of the United States, which is keen to collaborate in supporting this country’s clean energy transition.
US Assistant Secretary of State for East Asian and Pacific Affairs Daniel J. Kritenbrink, who recently visited Malaysia to attend the Sixth Malaysia-US Senior Officials Dialogue, says the United States is ready to assist.
The meeting also marked the 10th anniversary of the Malaysia-US Comprehensive Partnership. Secretary-General of the Foreign Affairs Ministry Datuk Sri Amran Mohamed Zin led the Malaysian delegation in Putrajaya.
“We talked quite a bit about that. What we have been impressed by is that Malaysia has set quite an ambitious goal to achieve net zero [emissions] by 2050. We want to help support that,” Kritenbrink tells Sunday Star.
“You are well known for your prowess in the high-tech economy, particularly in the semiconductor sector. We talked a lot about how our economic cooperation, American investment, and expertise can contribute to your clean energy transition.”
Ambitious goal: Kritenbrink says the United States is impressed with Malaysia’s net zero carbon emissions by 2050 goal. — LOW LAY PHON/The Star
US interests align with its own long-term strategy to reach net zero emissions by 2050. In 2021, the country outlined a framework to cap the global temperature rise at 1.5°C and avoid severe climate impacts. Its strategy emphasises five core areas: decarbonising electricity, electrifying energy consumption, switching to clean fuels, reducing non-carbon emissions, and scaling up carbon dioxide removal.
Malaysia, meanwhile, has introduced several initiatives to support its climate goals, including the National Energy Transition Roadmap, Hydrogen Economy and Technology Roadmap, and the Energy Efficiency and Conservation Act 2023.
Kritenbrink acknowledges the delicate balance Malaysia faces between growing its high-tech sectors and managing energy demands while working towards climate targets.
“Because Malaysia is developing into such a high-tech superpower in semiconductors and other high-tech sectors, you’ll need more power. The challenge is meeting that demand while still achieving your climate goals. We talked a lot about renewables and other clean energy sources,” he says, referring to discussions during the Malaysia-US Senior Officials Dialogue.
According to a joint statement on the dialogue, Malaysia and the United States will collaborate on not only accelerating the clean energy transition but also improving supply chain resilience, and fostering private sector partnerships that could stimulate innovation and job creation.
This is consistent with the ongoing efforts under the Indo Pacific Economic Framework, with both Malaysia and the United States committed to pursuing deeper engagement to support sustainable and inclusive growth.
When asked whether the United States had specific recommendations for Malaysia, Kriten-brink says his team is ready to participate in any initiative Malaysia prioritises.
“Well, I don’t want to get ahead of our Malaysian government partners. Let’s put it this way – what we offered is that we are prepared to be Malaysia’s partner in this clean energy transition, in any sector Malaysia wants to pursue.
“We believe we have the know-how and the companies with the technology to make a real contribution.”
He also outlines areas where the United States could provide technical support.
“We discussed how we could help Malaysia develop a smart grid, explore advanced battery storage, and bring other clean energy resources online.
“I’ll just leave it at this: We are committed and open to where Malaysia wants to go.”
Kritenbrink emphasises the strong bilateral relationship between the two nations, noting that investments by US companies reflect confidence in Malaysia’s economic potential and democratic system.
One point Kritenbrink says he made during the dialogue was that when US Secretary of State Antony Blinken met with Prime Minister Datuk Seri Anwar Ibrahim, Blinken said US investments are a vote of confidence in Malaysia.
“The US and our global companies are saying: We believe in Malaysia, in your workforce, in your democracy. And that’s why we’re investing here.”
In the dialogue, Malaysia and the United States acknowledged interest in exploring further cooperation in science and technology by recognising potential synergies in space, biotechnology, and agriculture development, small and medium enterprises’ capacity-building, and healthcare and vaccine research cooperation.
Additionally, the two sides recognised the importance of collaboration in high-growth sectors such as semiconductors, the digital economy, renewable energy, and critical minerals.
Both US and Malaysian parties stated that the two countries are continuing the cooperative activities reflected in the Memorandum of Cooperation on Semiconductor Supply Chain Resilience signed in 2022.
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Kritenbrink says the Malaysia-US partnership also offers limitless opportunities in other areas.
“The sky’s the limit. We have this long history of working together, with shared values and tremendous respect for Malaysia’s democracy and diverse society.
“Based on this foundation of mutual interests – regional peace and stability, and 10 years of work in the Comprehensive Partnership – I’m very excited about what lies ahead.
“Whether it’s supporting Malaysia’s clean energy transition, helping the country climb further up the economic and technological ladder, or investing in young people through education and cultural exchange, there are no limits to what we can achieve together.”
