GENEVA (Dec 12): Malaysia is well-positioned to establish itself as a regional leader in the development and production of Sustainable Aviation Fuel (SAF), supported by government initiatives and ongoing policy enhancements, according to the International Air Transport Association (IATA).

The association's director for energy transition Hemant Mistry said Malaysia’s push toward SAF is part of its broader ambition to achieve net-zero carbon emissions by 2050, led by the Climate Change Action Council.

“The government’s plans under the National Energy Transition Roadmap (NETR), aimed to accelerate energy transformation and create a high-value green economy, is a key step to accelerating SAF production.  

“To develop the SAF ecosystem further, the recent publication of the Malaysia Aviation Decarbonisation Blueprint (MADB) outlines a whole-of-government and whole-of-society approach to work together to do what is needed in addressing climate action,” he told Bernama on the sidelines of IATA Global Media Day 2024, here on Wednesday.

These measures are an innovative and essential element to start a new ecosystem, Mistry added.

Additionally, the Ministry of Plantation and Commodities has also signalled its commitment to boosting SAF production through ongoing discussions about tax incentives.

These measures are expected to attract foreign investment and establish Malaysia as a hub for SAF production in the region, said Mistry.

“The introduction of targeted incentives and the formalisation of policies to support the transition from renewable diesel to SAF at existing facilities are crucial steps.

“This will not only enhance current production but also attract private sector investment to harness the region’s sustainable feedstock potential,” he said.

It was reported that Plantation and Commodities Ministry is collaborating with the Ministry of Investment, Trade and Industry (MITI) to develop a document on a national strategy for SAF to support Malaysia’s SAF production and consumption industries.

As the world’s second-largest palm oil producer, Malaysia is in a strategic position to become a leading global SAF producer, said KPK minister Datuk Seri Johari Abdul Ghani.

He said this aligns with the MADB and supports the nation’s goal of becoming Southeast Asia’s leading SAF producer.

Meanwhile, Petronas is set to establish Malaysia’s first SAF production facility by 2028, marking a major step forward in meeting the rising demand for SAF within the region.

Uploaded by Lam Seng Fatt