MIDA’s Green Technology Tax Incentives Have Been Instrumental in Nurturing Renewable Energy Development
KUALA LUMPUR, 31 OCTOBER 2018: Cenergi SEA Sdn Bhd, Khazanah Nasional’s clean energy investment and development company, hopes the Government will continue to provide Green Technology Tax Incentives under Budget 2019 which is expected to be tabled on November 2, 2018.
Cenergi’s Chief Executive Officer, Ernest Navaratnam said, “The Government through MIDA has been playing an active role in strengthening the development of green technology by introducing the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE). We hope the Government will continue to extend these incentives for green project investors and consultants from the current end-date of year 2020 to year 2025. This will enable small and medium enterprises (SMEs) to grow the Renewable Energy (RE) market.”
“Generally, financial institutions view RE as a higher risk investment. As most green technology companies are SMEs, extra Government support will be required to overcome funding barriers. Incentivising SME investments in the RE sector would help enable a diversification of Malaysia’s renewable energy market and portfolio beyond solar, thus helping the nation to meet its 20 per cent RE target by 2025.
In addition, we also hope that the financial institutions will be further encouraged to support the SMEs in the RE and energy efficiency (EE) activities. For example, Malaysia’s development of the Green Sukuk, a first in the world, as well as the role of the Credit Guarantee Corporation (CGC) are important efforts to help fill the gaps in green financing by assisting financial institutions to on-lend to SMEs for green project,” he added.
“We also wish congratulate the Government for introducing a strategic thrust in pursuing green growth for sustainability and resilience under the 11th Malaysia Plan Mid-term Review. We strongly believe the Green sector will play an important role in the global market place in the future,” concluded Ernest.