KUALA LUMPUR (April 7): The new board appointments at the Energy Commission (EC), in particular its new chairman Mohammed Rashdan Mohd Yusof, are intended to shake up the regulator’s approach to energy transition because Malaysia needs to catch up with its regional neighbours, according to Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad.
“I want him (Mohammed Rashdan) to shake things up...I need an EC that can function. [There is] a lot of lobbying, but I know it cannot be business as usual. It cannot be more of the same,” Nik Nazmi told The Edge in an interview.
He was addressing concerns raised over the appointment of EC board members who continue to hold office in the private sector. He also said there are federal legislations that “clearly provide” for instances of conflict of interest, with safeguards to deal with the issue.
He cited the Energy Commission Act 2001 (EC Act 2021), which requires commission members to declare their interests, as an example.
He said Mohammed Rashdan, who is still serving as the deputy group managing director of Gamuda Bhd, which has announced plans to venture into the renewable energy (RE) sector in Malaysia and overseas, “went a step further” and chose to recuse himself from situations deemed to have conflict.
“Contrary to previous practice, the chairman is not present in the key sub-committees — he’s only present in the economic and strategic sub-committee, which is very macro,” Nik Nazmi said.
While he acknowledged that there are genuine concerns over Mohammed Rashdan's appointment, Nik Nazmi also alluded to people raising the issue for “certain reasons”.
“I am not saying that there is no conflict. The act foresees that there will be situations like this, and they have remedies or safeguards for that. It is quite typical of any corporate structure,” he added.
Among the seven EC sub-committees in which Mohammed Rashdan is not present are licensing, finance and tender, as well as the Kumpulan Wang Industry Elektrik (KWIE) fund.
Under the EC Act 2021, the EC chairman is allowed to hold office in other organisations, with the minister’s prior, written approval.
Meanwhile, board appointments at the EC are also vetted by the Prime Minister’s Office (PMO), Nik Nazmi noted.
Mohammed Rashdan, he said, has vast experience in the corporate sector as well as government-linked projects and possesses clear ideas in place to support the government’s visions and targets.
Nik Nazmi also pointed out that energy is not Gamuda’s core business, adding that government-linked investment companies (GLICs) also own substantial stakes in the listed entity, including Permodalan Nasional Bhd (16.5%), Employees Provident Fund (14.5%) and Kumpulan Wang Persaraan (KWAP) (5.3%).
Including Mohammed Rashdan, six of the 11 EC board members were appointed on Feb 15 this year.
The six are: Mohammed Rashdan; former Court of Appeal judge Datuk Darryl Goon Siew Chye, who currently serves as a consultant at law firm Raja, Darryl & Loh; former Yayasan Peneraju Pendidikan Bumiputera CEO and social entrepreneur Raja Azura Raja Mahayuddin, who currently serves as independent director in construction outfit Ireka Corp Bhd; Intel regional cloud partners programme manager Delakan Ratha Krisnak; former UEM Edgenta Bhd country head Saipolyazan Mat Yusop, who was also PKR candidate for Sungai Besar constituent in GE15; and former Tenaga Nasional Bhd CEO Datuk Seri Azman Mohd.
The remaining five board members are linked to various ministries and government agencies.
Nik Nazmi is of the view that the current board line-up brings “the right dynamics in terms of industry experience, leadership qualities, diversity and fresh perspectives.”
“If people say I’m moving too fast or too radical, or ignoring the established players, we have [former TNB CEO] Datuk Seri Azman Mohd [on the board], so it is a nice mix to provide some direction,” he added.
“The shake-up, the new vision that is required for the energy transition, is massive. We are looking at accelerating RE and our energy industry, and this involves having a strategic economic and business outlook as well, and not merely looking at technical capabilities,” Nik Nazmi said.
The minister said he arrived at the recommendations after speaking to key participants in the energy sector. He also said he does not personally know several of the board members, although he had been in contact with Mohammed Rashdan in his previous roles.
“Previously [the EC membership] was always seen as a patronage thing,” he said. “Obviously it remains to be seen whether they (the new board members) can deliver, but I am confident. They are all very qualified in their own right."