PENANG must accelerate its clean energy transition and industrial decarbonisation efforts to remain competitive in attracting high-value global investments, Chief Minister Chow Kon Yeow said today.
Speaking at the R.A.C.E to Zero: Penang Edition – The Penang Energy Framework: Mandatory Re-Targets, Building Efficiency & Industrial Decarbonization at Eastin Hotel here, Chow said global companies were increasingly looking at access to renewable energy when deciding where to invest.
“Global companies are setting stronger carbon targets across their supply chains. They want access to renewable energy and lower Scope 2 emissions.
“For Penang’s manufacturers, clean energy is no longer simply an environmental issue. It is a competitiveness issue,” he said.
Chow said Penang’s electrical and electronics (E&E) export value reached RM436.9 billion last year, accounting for about 68 per cent of Malaysia’s total E&E exports, and stressed that the state must strengthen its energy ecosystem to protect its position as the “Silicon Valley of the East”.
Under the Penang Energy Framework launched in November 2024, the state aims to reduce energy intensity by 25 per cent and increase renewable energy adoption to at least 10 per cent by 2030.
He said rooftop solar, floating solar and renewable energy developments at Silicon Island would form part of Penang’s efforts. At the same time, new commercial and industrial buildings are expected to utilise at least 75 per cent of their roof area for solar panels or meet the relevant renewable energy sourcing target.
“We should not depend entirely on external markets or imported energy solutions. We need to build capability, create demand, and strengthen the ecosystem here,” Chow said.
He also highlighted the RM20 million Climate Mitigation Fund under the Penang Green Industry Programme, which provides preferential financing of up to RM500,000 for eligible SMEs and MTCs to undertake sustainability improvements.
“Let me be candid. There will be costs in this transition. But there will be a higher cost if we do nothing,” he said.
“Our ambition is not simply to remain the Silicon Valley of the East. Our ambition is to become one of Asia’s leading locations for clean and high-value manufacturing.”
Meanwhile, state Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said infrastructure would be critical to supporting Penang’s low-carbon future.
“Without the right infrastructure, the right roads, the right electricity network, the right connectivity, even the best ideas cannot become reality. So in other words, infrastructure is a key enabler,” he said.
Zairil said the state was reviewing the Penang Energy Framework, potentially towards a “Penang Energy Framework 2.0”, with greater focus on smart grids, battery storage, AI and digital technologies.
He also highlighted the Green Tech Park at Silicon Island, which is being designed to be 100 per cent powered by renewable energy and ESG-compliant from day one.
Zairil stressed that decarbonisation must extend beyond factories to transport and logistics.
“Today, carbon competitiveness is becoming just as important as cost competitiveness,” he said, adding that the state was targeting 600 EV charging bays by 2030 while also expanding charging infrastructure for electric motorcycles.
He said aligning transport, energy and land-use policies would help build a future-ready Penang that is globally competitive, environmentally responsible and inclusive.
Also present earlier were Malaysian Photovoltaic and Sustainable Energy Industry Association president Justin Sim and R.A.C.E to Zero organising chairman Samuel Soon.
Story by Kevin Vimal
Pix by Muhammad Iqbal Hamdan
Video by Alissala Thian