The Malaysia Investment Development Authority (MIDA) and ACWA Power, a leading renewable energy company from Saudi Arabia, have initiated a significant cooperation plan for clean energy infrastructure, involving a total investment of USD 10 billion (approximately RM 42.375 billion). This memorandum of understanding was signed during the Asean-GCC Summit and aims to advance clean energy projects in Malaysia, targeting an installed capacity of 12.5 gigawatts (GW) by 2040.
In addition to this agreement, ACWA Power has also signed strategic agreements with Tenaga Nasional Berhad, UEM Lestra, and Terengganu Incorporated. MIDA stated that this collaboration will focus on renewable energy, green hydrogen, and advanced water resource solutions, aligning with Malaysia’s energy transition roadmap and Saudi Arabia’s Vision 2030 climate goals.
The signing ceremony was witnessed by several key officials, including Deputy Prime Minister and Minister of Energy and Water Transition Dato’ Sri Fadillah Yusof, Minister of Investment, Trade and Industry Dato’ Seri Mohamed Azmin Ali, Deputy Minister for Economy and Development Affairs of Saudi Arabia Abdulrahman AlZahrani, and Deputy Minister for International Relations of the Investment Ministry Sarah Al-Shaery.
Dato’ Sri Iskandar Ibrahim, the CEO of MIDA, emphasized that this partnership positions Malaysia as a preferred destination for sustainable investment in Southeast Asia. He noted that the collaboration will accelerate the transition to a low-carbon economy while creating high-skilled jobs and fostering technological innovation in the renewable energy sector.
MIDA will support these investment projects to ensure they align with new investment policies and energy transition goals, working closely with the Ministry of Energy and Water Transition and the Energy Commission. The CEO of ACWA Power, Marco Al-Achli, remarked that this strategic partnership is a significant milestone for their expansion in Southeast Asia, reflecting a commitment to support Malaysia and the ASEAN region in achieving a sustainable, low-carbon future. He believes that combining the company’s global expertise in renewable energy, desalination, and green hydrogen with local partners’ knowledge will not only expedite the implementation of clean energy solutions but also facilitate technology transfer, create jobs, and promote long-term economic growth and social welfare.
Malaysia’s existing green technology incentives, such as the Green Investment Tax Allowance (GITA), have been optimized through a tiered and results-oriented mechanism to meet the demands of green industry development. Last year, Malaysia made significant progress in green investments, approving a total investment of RM 20.8 billion across seven sectors in manufacturing and services, involving 943 projects that are expected to create 8,413 new jobs, particularly in key areas such as green mobility, circular economy, and renewable energy.
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