KUALA LUMPUR (Aug 14): UEM Group Bhd, a unit of sovereign wealth fund Khazanah Nasional Bhd, is committing RM1.5 billion over the next two years to decarbonising industrial parks in Malaysia.

The investments — to be channelled through the group's green industry arm UEM Lestra Bhd — will upgrade current infrastructure, involving integration of renewable energy sources and the implementation of other advanced energy management systems and technology, UEM Group said in a statement.  

"Investors are hungry for zero-emission operations,” said Datuk Amran Hafiz Affifudin, the managing director of UEM Group. “Initiatives such as the decarbonisation of industrial parks are expected to boost local economy, drive sustainable growth, and position Malaysia as a key global player.”

The commitment is part of UEM Group’s effort to spur domestic direct investment that will lead to job creation and attract foreign direct investment to Malaysia.

In July 2023, UEM Lestra, in collaboration with local and international partners, announced the development of a one-gigawatt hybrid solar power plant integrated with a renewable energy industrial park. The project is part of a flagship initiative of the National Energy Transition Roadmap.

UEM Lestra is looking at expanding its green assets and operations through strategic partnerships as well as via direct and active ownership, said chief executive officer Harman Faiz Habib Muhamad in the same statement.

“Over the long term, we plan to establish a competitive green platform in key energy sectors and emerging growth areas, such as renewables and storage infrastructure, integrated energy solutions, green and electric mobility, as well as waste management and recycling,” he said.

The initiatives will be funded through the RM7 billion sustainable and responsible investment sukuk programme.