KUALA LUMPUR (March 31): Malakoff Corp Bhd (KL:MALAKOF) is not pursuing new coal investment and will lean on gas as it transitions to renewable energy, according to its 2025 annual report.

“As Malaysia’s largest independent power producer, the group continues to supply dependable electricity while progressively reducing emissions intensity,” the group said. The company is targeting a 30% reduction of its greenhouse gas (GHG) emissions by 2031, based on its 2019 baseline.

It noted that its energy transition is anchored by the nation’s goal to achieve net-zero GHG emissions by 2050 — reflecting on Malaysia’s commitment to balance the energy trilemma between energy security, energy equity and environmental sustainability.

Having said that, in the financial year ended Dec 31, 2025 (FY2025), Malakoff pointed out its renewable energy segment was driven by utility-scale solar projects and progress in biomass co-firing, aiming for a 15% fuel mix integration by 2027.

This is in line with several climate-related policies that will be introduced this year.

“These policies, expected to strengthen Malaysia’s net-zero agenda, include the Rang Undang-Undang Perubanhan Iklim (RUUPIN) and the National Gas Roadmap,” Malakoff said.

“RUUPIN will establish the regulatory foundation for carbon market oversight, emissions reporting and climate governance.”

The road map, which is to be unveiled in the third quarter of 2026, will formalise the country’s long-term direction for natural gas and reinforce the role of gas within the NETR’s targeted share of the national primary energy supply by 2050.

Looking ahead, the group anticipates that "gas will remain the fuel to support reliability as renewable generation increases”.

Malakof Corp’s shares were down three sen or 3.66% at 79 sen per share during Tuesday’s closing, giving the company a market value of RM3.95 billion.