By Ashley Sim and Karen Bong
KUCHING, Aug 11: The Sarawak government is considering the establishment of a blended finance facility to support catalytic infrastructure and transition-aligned investment by leveraging risk mitigation instruments and deploying public capital as a crowd-in mechanism.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the initiative aims to enhance the bankability of such projects and unlock broader private sector and development banks participation.
He made the announcement when launching the Sarawak Energy Transition Policy (SET-P) during the Public-Industry Engagement Day hosted by the Ministry of Energy and Environmental Sustainability (MEESty) Sarawak at the Borneo Convention Centre Kuching (BCCK) here today.
“But let me be clear, realising this vision will require deep collaboration. We call upon development partners, private investors, and financial institutions to join us in shaping a resilient, inclusive, and investable energy transition for Sarawak,” he said.
Abang Johari explained that some of the critical infrastructure required to enable Sarawak’s natural gas hubs, such as transportation terminals, access roads, and supporting logistics, may also fall into the sub-commercial or below-market return category.
“While these assets are essential to unlocking long-term value, they may not offer sufficient returns to attract private capital on their own.
“As such, strategic government intervention will be necessary to move them forward,” he added.
The SET-P, which he described as the only policy of its kind in Malaysia, is a comprehensive framework that consolidates all existing energy strategies to ensure security, promote environmental sustainability, and maintain economic affordability.
By 2050, the policy is projected to generate RM550 billion in cumulative GDP, create over 80,000 high-paying jobs, and attract between RM580 billion and RM700 billion in investments, with more than 75 per cent of the benefits expected to go to low- and middle-income groups.
The SET-P is anchored on seven strategic pillars: renewable energy; natural gas; energy efficiency; low-carbon mobility; clean hydrogen; carbon capture, utilisation, and storage (CCUS); and alternative energy. These are supported by five key enablers, namely strong governance and regulation; innovative financing and investment; robust infrastructure; technology and innovation; and skilled and adaptive workforce development.
“The SET-P is built on the principle of inclusivity. Its success depends on strong and sustained collaboration across all segments of society, including government, industry, academia, civil society, and local communities, as well as with partners from around the world.
“We actively welcome partnerships that bring innovation, financing, technical expertise, and capacity-building to support and accelerate this journey,” said the Premier.
He went on to say that today’s engagement is not merely ceremonial, but a critical step in fostering the collective ownership and shared responsibility needed for effective implementation.
“By working together, we can develop the enabling infrastructure, drive innovation through research and development, and cultivate a highly skilled green workforce prepared to lead Sarawak into a resilient, low-carbon energy future.
“As we advance this transition, we must ensure that the benefits of this transition, whether through job creation, improved services, or a cleaner, healthier environment, are shared equitably across Sarawak, reaching both urban and rural communities,” he added. — DayakDaily
