Malaysia’s 2024 green investment strategy enabling clean-tech growth

Malaysia is stepping up its clean-tech ambitions. The 2024 Green Investment Strategy sets clear priorities and offers generous incentives. The goal is to attract sustainable investment and support the country’s transition to a low-carbon economy.

Malaysia has introduced its Green Investment Strategy (GIS) for 2024, outlining a national framework to accelerate the adoption of clean technologies. The strategy supports the country’s targets of achieving 70 per cent renewable energy capacity and reaching net zero emissions by 2050.

Strategic focus areas for a low-carbon future

Seven priority areas have been identified: renewable energy, hydrogen, bioenergy, energy efficiency, carbon capture, utilisation and storage (CCUS), green mobility, and the circular economy. These areas aim to expand solar and hydro power, develop hydrogen hubs for domestic use and export, and promote biomass and biogas from agricultural waste. The strategy also encourages energy-efficient retrofits, smart technologies, and decarbonisation in heavy industries.

Green mobility is a central focus, with support for electric vehicle production, battery manufacturing, and the development of a nationwide charging network. Circular economy initiatives aim to improve recycling, reduce industrial waste, and foster sustainable product innovation.

Incentives driving clean-tech investment

To attract investment, Malaysia offers a range of tax incentives. The Investment Tax Allowance (ITA) enables companies to offset capital expenditure against taxable income, while the Green Income Tax Exemption (GITE) supports solar and energy efficiency projects. The Green Technology Financing Scheme (GTFS) provides loan guarantees and interest subsidies for sectors such as hydrogen and CCUS.

Eligible companies must be tax-resident and operate through a Malaysian-registered entity, with project certification managed by the Malaysian Investment Development Authority (MIDA) or the Malaysian Green Technology and Climate Change Corporation (MGTC). MIDA plays a key role in facilitating green investment, offering policy guidance, access to incentives, and streamlined approvals.

With over 800 green projects approved in 2024, Malaysia is positioning itself as a regional clean-tech hub. As chair of ASEAN in 2025, the country presents growing opportunities for international companies in energy, mobility, and sustainable manufacturing.