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Khazanah Nasional’s RE firm welcomes tax incentives in 2020 Budget

Cenergi’s plant in Sri Jelutung

By NST Business – October 15, 2019 @ 7:57pm

KUALA LUMPUR: Khazanah Nasional Bhd’s renewable energy company, Cenergi SEA Sdn Bhd welcomes the various initiatives and incentives outlined in Budget 2020 to boost the renewable energy sector.

Under Budget 2020, the government has outlined measures to strengthen economic diversity and to focus on green growth and energy for the future.

These include extending the green investment tax allowance (GITA) and green income tax exemption (GITE) to 2023.

It will also accelerate the implementation of energy performance contracts (EPC) for government buildings, focusing on hospitals and educational institutions.

Group chief executive officer Ernest Navaratnam said these new measures demonstrate the government’s continuous support and commitment to champion sustainability and will help to fuel further growth of the renewable energy industry.

“Cenergi believes the extension of tax incentives offered will benefit renewable energy companies and businesses in Malaysia which in turn will help Malaysia achieve its goal of generating 20 per cent of its electricity from renewable energy sources by 2025,” he said in a statement.

Navaratnam said another attractive announcement for RE players is tax incentives to companies implementing solar leasing activities with income tax exemption of 70 per cent for up to 10 years.

“The incentive will enable solar leasing providers to offer more attractive rates to end users and increase their overall value proposition to all stakeholders,” he added.

Ernest said ass one of the players for the EPC, Cenergi also welcomes the government’s plan to accelerate EPC implementation for government buildings as it gives the company the opportunity to expand its business and contribute to the government’s objectives.

The government’s lead in implementing EPC is also expected to provide private sector building owners with more confidence to adopt the EPC model, he added.