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Malaysia Unveils Ambitious Plans to Boost High-Growth Industries and Transition to Renewable Energy

Strategic Insights

— 2 min read

Malaysia's government has announced a slew of strategic plans to drive growth in high-growth, high-value (HGHV) industries and key strategic sectors, as outlined in the 13th Malaysia Plan (13MP). Prime Minister Datuk Seri Anwar Ibrahim emphasized the importance of these plans, including the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), and the National Semiconductor Strategy (NSS), in stimulating inclusive and sustainable economic growth. The plans aim to create opportunities for industry players to participate and compete in a healthier and more transparent manner, leveraging renewable energy and nuclear power as competitive and safe clean energy sources.

Key Takeaways:

  • The government will implement the National Energy Transition Roadmap (NETR) to transition to renewable energy, aiming to increase the country's installed capacity mix to 35% by 2030, up from 29%.
  • The Prime Minister announced the establishment of a more innovative electricity market system, including the true cost of power generation, including renewable energy (RE), to facilitate industry participation and competition.
  • Malaysia targets an electrical and electronic (E and E) product export value of RM1 trillion by 2030, with a current contribution of over RM600 billion in 2024.
  • The National Semiconductor Strategy will focus on the development of integrated circuit design, semiconductor manufacturing equipment, advanced packaging, and front-end processes.
  • The government will strengthen synergy between local companies and global semiconductor firms, such as Amazon Web Services, Google, and Infineon Technologies, along the value chain.
  • The government will enhance the security of the existing energy supply through the construction of the Third Regasification Terminal Complex in the Lumut Maritime Industrial City (LuMIC), Perak.
  • The government is committed to accelerating the development of the rare earth elements (REE) industry, prioritizing resources for domestic use.
  • Carbon trading will be facilitated through the implementation of the National Carbon Market Policy, the Emissions Trading Scheme (ETS), and the provision of incentives for carbon credit projects.
  • A pilot carbon capture project will be implemented in the iron and steel industry in Kemaman, Terengganu.

Statistics:

  • Malaysia aims to increase the country's installed capacity mix to 35% by 2030, up from 29%.
  • Malaysia currently contributes over RM600 billion to global electrical and electronic (E and E) product export value.
  • The government targets an electrical and electronic (E and E) product export value of RM1 trillion by 2030.
  • The National Semiconductor Strategy will focus on the development of integrated circuit design, semiconductor manufacturing equipment, advanced packaging, and front-end processes.

Sources:

  • BERNAMA News Agency, 31 Jul 2025.

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