In a resource-rich nation like Malaysia, the responsible and sustainable use of natural resources ensures the long-term development of the economy. This is most notable in the 2021 Budget, where for the first time ever, initiatives have been introduced in line with the UN Sustainable Development Goals (SDGs). While the drive towards a more sustainable economy is one that has been embraced by all parts of the government, one Ministry is driving the way – the Ministry of Energy and Natural Resources (KeTSA).
15 Milestones Initiatives
In line with its objective of sustainable development efforts in Malaysia, KeTSA has embarked on 15 initiatives. Of these 15 initiatives, 5 are under the energy sector while the remaining 10 are under the natural resources sector.
Furthermore, the 10 initiatives can be further sub-divided into the protection of biodiversity, improving forest, land and mining management, enhancing geological heritage, boosting ecotourism and reducing the nation’s carbon footprint.
Unleashing the Potential of Solar Energy Investment
The Large Scale Solar (LSS) Programme
The Large Scale Solar (LSS) Programme is part of the government’s effort to increase the deployment of renewable energy in power generation and to reduce the emission of greenhouse gases (GHG) in the country. This initiative is in line with the target of 31 percent Renewable Energy (RE) in capacity mix by 2025 and 40% in 2035.
The Large Scale Solar Programme (LSS) was first introduced in 2016 as part of a wider strategy to increase electricity generation from RE sources in Malaysia. Under the programme, eligible solar developers are selected via an open bidding process conducted by the Energy Commission. Since the inception of this programme, four open bidding exercises have been conducted and all exercises were well-received, with the participation of more than 500 bidders. There are currently 87 approved LSS projects ranging from 1MW to 100MW and with an overall total installed capacity of 2,200MW. To date, a total installed capacity of 614.8MW have achieved commercial operation.
The LSS Programme has not only managed to drive down the levelised cost of solar energy in Malaysia but has also helped in contributing to the economic growth of the nation, which was affected by the COVID-19 pandemic in 2020. A quota of 1,000MW was released in 2020 alone which is expected to generate more than RM4 billion worth of investments and help in creating 12,000 job opportunities.
Easing the Burden of Electricity Consumers Affected by the Covid-19 pandemic
Electricity Bill Discount Initiative
The Malaysian Government implemented the first nationwide lockdown known as the Movement Control Order (MCO) in March 2020, to contain the outbreak of the COVID-19 pandemic. The MCO lasted for 3 months and among the measures imposed was the temporary closing of commercial and industrial premises, with employees required to work from home.
This new norm of working from home increased household energy consumption, which translated into higher domestic electricity bills. Compounding this was the accumulated 3 months electricity bill charges received by consumers in one single bill after the MCO, as meter reading operations were put on hold during the lockdown.
Therefore, to provide relief to electricity consumers due to the unexpected surge in electricity bill, the Electricity Bill Discount Initiative was introduced. The programme provided a 3-month electricity bill discount of up to RM77/month which was implemented at a cost of RM2.6 billion funded by the Electricity Industry Fund, Ministry of Finance and Tenaga Nasional Berhad.
Digitalising the Malaysian Electricity Supply Services
Smart Meter Installation Programme
As Malaysia is pushing for more integration of RE especially variable RE in its electricity supply system, the grid readiness needs to be enhanced to ensure security of supply to consumers. Digitalising the grid through installing smart meters is part of the government’s efforts to enhance grid stability, as well as to enhance customers’ experience. The installation of smart meters will enable consumers to have access to their daily energy usage and provide bills with greater accuracy for smarter, greener and more energy efficient energy consumption. Smart meters also empower electricity consumers’ saving decisions and lifestyle adjustments on energy efficiency.
To date, more than 1 million smart meters have been installed in the country with Melaka and the Klang Valley as pioneers in the roll-out plan. The implementation of this smart meter initiative has also spurred the development of the smart meter-related industry in Malaysia leading to creation of business opportunities to 200 local vendors and creation of more than 5,000 jobs. The initiative has also enhanced local capabilities in manufacturing smart meters. It is envisaged that future installation of smart meters in Malaysia will be using locally-produced meters. With the massive roll-out of smart meters, Malaysia is now at the forefront of the roll-out of smart meter installation in ASEAN.
Encouraging Efficient Energy Use among Residential Electricity Consumers
Sustainability Achieved Via Energy Efficiency 2.0 Programme (SAVE 2.0)
Energy efficiency is one of the priority areas in addressing the issue of climate change in Malaysia. Various programmes and initiatives to promote energy efficiency and conservation (EE&C) in the country have been implemented to inculcate best practices in efficient energy consumption among
consumers. The Sustainability Achieved Via Energy Efficiency 2.0 Programme (SAVE 2.0) is one of the programmes and was introduced to encourage the use of energy efficient home appliances among consumers.
Under the SAVE 2.0 Programme, consumers were given an e-rebate of RM200 for the purchase of refrigerators and air conditioners that are rated four or five-star by the Energy Commission. Refrigerators and air conditioners were selected as these are the two most common appliances in a Malaysian household. This initiative is expected to benefit 150,000 households with an estimated savings in electricity bill of RM22 million a year.
Government Buildings Leading By Example in Energy Efficiency
Building Energy Intensity (BEI) Labelling for Government Buildings
The National Building Energy Intensity Labelling initiative – BEI Labelling for government buildings – was launched in October 2018. This initiative is part of the Government Leads by Example (GLBE) Programme, which aims to encourage energy efficient practices to ensure productive use of energy and minimise energy wastage within the public sector.
The BEI Labelling initiative provides information on the level and performance of a building’s energy consumption, creating greater awareness and healthy competition among building owners in improving their energy consumption. To date, a total of 250 government buildings have been labelled and their ratings will be updated annually. The BEI Labelling in government buildings is a step forward to ensure government buildings are consuming energy efficiently, thus, reducing electricity bills borne by the government.
Protecting Our Biodiversity
The Access to Biological Resources and Benefit Sharing Act (Act 795)
Malaysia is a party to the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (Nagoya Protocol). Under this agreement, Malaysia agrees to share its biological resources for the purpose of scientific research and commercial development, in exchange for a share of the benefits that come with their use.
As such, Malaysia has enforced the Access to Biological Resources and Benefit Sharing Act [Act 795] on 18 December 2020 to regulate the access to biological resources and traditional knowledge associated with biological resources. Act 795 requires the resource user to share in a fair and equitable way the benefits arising from the utilization of the resources with the resource provider. This comes under the purview of the Biodiversity Management Division of KeTSA.
Act 795, ensures that the sustainable use of our precious biological resources and that the country and people are able to enjoy the rewards of such use. This will help curb wanton exploitation of resources, while combating acts of biopiracy.
Biodiversity Protection & Patrolling Program (BP3)
While Act 795 lays down the framework for Access Benefit Sharing (ABS) in Malaysia, it is just as important to ensure that our nation’s natural resources are protected from poachers and illegal loggers. As such, the Biodiversity Management Division and PERHILITAN have been tasked with overseeing the Biodiversity Protection & Patrolling Program (BP3).
They work together with other agencies such as the JPSM, Royal Malaysian Police (PDRM), Perak State Park Corporation (PTNP), and the Johor National Parks Corporation (PTNJ) as well as NGOs to guard protected areas in Peninsular Malaysia. This includes stopping intrusions, illegal logging and poaching in National Parks, Wildlife Reserves, State Parks, and Permanent Reserved Forest.
In addition, military veterans and indigenous people also act as wildlife rangers. The importance of the BP3 is reflected in how it has received an allocation of RM32 million under Budget 2021.
100 Million Trees Planting Campaign
As pledged at the Earth Summit at Rio de Janeiro in 1992, Malaysia is committed to keeping at least 50 percent of its land area under forests and tree cover. To ensure this, the Forestry Management Division of KeTSA is spearheading the 100 million trees planting campaign. This is part of the Greening Malaysia campaign and is being done with cooperation from the Forestry Department of Peninsular Malaysia (JPSM), State Forestry Departments, the Forest Research Institute of Malaysia (FRIM) and State governments.
Launched by Prime Minister YAB Tan Sri Muhyiddin Yassin on 5 January this year, the campaign – themed “Greening Malaysia: Our Trees, Our Life” – aims to cover an area of 20,000 to 80,000 hectares over a five-year period. This works out to around 20 million trees planted each year.
Extraordinary Actions for Conserving Malayan Tiger
The Malayan Tiger is a symbol of national pride. Unfortunately, encroachment into their habitats as well as illegal activities such as poaching have resulted in just less than 200 tigers left in the wild. As such the Malayan Tiger is protected under the Wildlife Conservation Act 2010 [Act 716] and has been placed on the International Union for Conservation of Nature (IUCN) Red List as being critically endangered.
Acting upon this, several extraordinary actions will be undertaken from 2021 to 2030 to conserve Malayan Tiger. These include strengthening enforcement activities and governance, enriching Malayan Tiger habitat and ex-situ programmes. In order to raise awareness on the importance of conserving the Malayan Tiger, KeTSA through PERHILITAN will continue the Save Our Malayan Tiger Campaign which was launched in 2019.
A national multi-enforcement agency task force on combating wildlife crime has been formed to curb illegal poaching as well as smuggling of wildlife. Operasi Bersepadu Khazanah (OBK) employs a multi-agency approach to increasing ‘boots on the ground’, while Biodiversity Protection and Patrolling Programme (BP3) encourages the involvement of Malaysian Armed Forces Veterans, Royal Malaysia Police Veterans and indigenous people in patrolling.
In 2019, OBK has successfully arrested 87 wildlife criminals which involved seizure of smuggled products worth RM2.7 million and destruction of 460 wire snares. In 2020, a total of 140 offenders were arrested with seizure worth RM1.85 million and 672 wire snares were destroyed. For its successes in combatting wildlife crime, the OBK was given recognition at the 5th Asia Environmental Enforcement Awards organized by United Nations Environment Programme (UNEP).
In order to raise awareness on the importance of conserving the Malayan Tiger, Biodiversity Management Division and PERHILITAN launched the Save the Malayan Tiger Campaign from 2019 to 2020. This campaign encompassed a number of initiatives to protect the Malayan Tiger and increase its population. These include research into enriching their habitat, breeding programmes, anti-poaching activities, and public awareness.
In total, the campaign managed to raise more than RM1.514 million in funds from corporate, institutional and individual donors. At the same time, enforcement activities from 2019 to 2020 resulted in 44 patrol operations, the removal of 2,097 tiger traps, and the arrests of 247 poachers and other criminals.
Improving Land and Mining Management
The Malaysia Geospatial Data Infrastructure (MyGDI)
National Geospatial Centre
One way of ensuring effective and sustainable management of natural resources is through geospatial information, which contains data on features, below and above the land. Aside from overseeing the nation’s energy and natural resources, geospatial information is also one of KeTSA’s key focus areas.
The Malaysia Geospatial Data Infrastructure (MyGDI) acts as Malaysia’s National Spatial Data Infrastructure. Managed by the National Geospatial Centre (PGN), MyGDI helps provide key information through geospatial data sharing to KeTSA, its agencies as well as other government departments.
For instance, through MyGDI, the authorities can determine which forested areas in Malaysia are at the highest risks of degradation or determine whether a particular area is falling prey to illegal logging or exploitation. This will then enable them to take the necessary remedial steps to address the problem.
Knowledge is power, and with MyGDI, KeTSA and the government as a whole have the tool that will enable them to better manage and protect our natural resources.
SmartKADASTER
In land administration and management, cadastres are used to show the precise location, ownership and type of land in a certain area. While traditionally done on paper, the advent of digitalisation has resulted in the creation of e-cadastres where all the information that is usually associated with a cadastre has been digitalised. This enables better and more efficient real time management of land.
In Malaysia, JUPEM – an agency under KeTSA – has developed the SmartKADASTER system, in line with various national and international initiatives. These include Cadastre 2034, the UN SDGs, the New Urban Agenda 2030, the Integrated Geospatial Information Framework (IGIF); the Shared Prosperity Vision 2030, the Second National Urbanization Policy, and the National Disaster Management Policies and Mechanisms.
Presently, SmartKADASTER is in Phase 2 of its rollout, having successfully covered 298 sq km of the Klang Valley in Phase 1. Phase 2 will see it covers an additional 1,498 sq km. This encompasses most of the major cities in Malaysia, particularly in the Klang Valley.
The development of SmartKADASTER is a vital step forward in incorporating geospatial information into supporting smart decision making, while adhering to the international goals of a Spatially Enabled Government and Society.
Responsible and Sustainable Mining
Malaysia has a wealth of mineral resources, which are estimated to be worth around RM4.11 trillion. These include tin, iron ore, rare earths, silica sand, ball clay, limestone and rock aggregates. However, the contribution of the minerals and mining industry to the economy is still low, and accounted for just RM9.94 billion or 0.7 percent of the GDP in 2019.
As part of its plans to uplift the minerals industry and transform Malaysia into being a minerals hub, the government has come up with the National Mineral Industry Transformation Plan 2021 – 2030 (TIM 2021 – 2030), which aims to ensure the responsible development of the minerals industry in the country.
Among the goals of the Plan are to increase the GDP contribution of the minerals sector to
1 percent from 0.7 percent by 2030, set up the Malaysian Mineral Industry Development Authority (MPMM), reduce mineral trade imbalances and mobilise overall activities in the value chain.
e-Tanah System
The e-Tanah System demonstrates KeTSA’s commitment to the digitalisation of government services. It is a unique land administration ecosystem which features three key innovations such as centralised secured land data bank and digital title, information exchange gateway, public portal and one stop service.
e-Tanah serves as a single point of contact for the public seeking information or updates on various aspects of land administration in the country. These include registration, rates, land disposal, land development, strata, and land acquisition. In addition, e-Tanah is also integrated with other systems such as system under the Inland Revenue Board of Malaysia, Companies Commission of Malaysia and MyGDI.
The implementation of e-Tanah System has significantly enhanced land administration services in Malaysia. This is reflected in the country’s ranking in Ease of Doing Business Report 2020 going up from 15th place to 12th place.
Boosting Ecotourism
KeTSA and Ecotourisn
Malaysia’s rich biodiversity is not only a source of pride for the nation, but also a source of revenue, particularly in the growing ecotourism market, which is expected to reach a global value of US$103.8 billion by 2027, according to a report by Allied Market Research.
KeTSA is playing a vital role in the development of Malaysia’s ecotourism potential as it is the Ministry responsible for overseeing key destinations. These include National Parks, Ekorimba Parks, State Park Forests and Geoparks. As such, in July 2020, the Minister of KeTSA announced a plan to create an Ecotourism Unit to help coordinate ecotourism activities.
KeTSA is also working with other government agencies to enhance the sector. For instance, it is boosting productivity by collaborating with the Malaysia Productivity Corporation (MPC) and Tourism Productivity Nexus (TPN). At the same time, it is also using the My Virtual Experience (MyVXP) platform to promote ecotourism through digital means, and working with local communities to boost products and services.
In 2019, tourism contributed around RM86.14 billion to the nation’s GDP. As the tourism sector strives to recover from the events of the recent pandemic, increased focus on ecotourism is a must in revitalisation efforts.
Reducing Carbon Footprint
REDD Plus Finance
As part of the national commitment to reduce its carbon footprint, KeTSA is developing an initiative known as REDD Plus Finance Framework (RFF).The aim of this is to create financial value for the carbon stored in forests by providing incentives to State governments to protect, conserve and sustainably manage their forests. It is a public -private partnership.
The RFF consists of two components namely: Forest Conservation Certificate (FCC), a non-market-based mechanism that does not allow for the transfer of emission reductions from forest activities to participants, and Forest Carbon Offset (FCO), a domestic market mechanism, which permits transfer of emission reductions from forest activities to participants.
RFF will contribute to the achievements of Malaysia’s international obligations under the Convention of Biological Diversity (CBD), as well as the Nationally Determined Contribution (NDC), under UNFCCC’s Paris Agreement to build a resilient network of natural ecosystems.
In the world today, sustainability has become more than just a buzzword. Nations and corporations are increasingly looking at enhancing partnerships with countries that demonstrate a clear commitment to safeguarding the natural heritage and the environment. Through the efforts of KeTSA, Malaysia is taking a great leap forward into being a leader for sustainability in the ASEAN and even Asia-Pacific region.
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