Kuala lumpur: The signing of bilateral agreements with foreign countries is expected to spur investment inflows and help offset the cost of developing carbon capture, utilisation and storage (CCUS) industrial hub infrastructure in Malaysia. Deputy Economy Minister Datuk Hanifah Hajar Taib stated that collaborations with nations like Singapore, South Korea, and Japan would position Malaysia as a CCUS hub in the Asia-Pacific region.

According to BERNAMA News Agency, Hanifah emphasized that these agreements would pave the way for new business opportunities, including the provision of permanent carbon dioxide (CO2) capture and storage services. She conveyed this information during the Dewan Rakyat’s question-and-answer session, responding to Muhammad Islahuddin Abas (PN-Mersing), who inquired about the government’s concrete measures and commitment to developing the CCUS industry as a new source of national revenue.

Hanifah Hajar revealed that the government plans to implement a pilot project on CO2 capture in the iron and steel industry in Kemaman, Terengganu. This project is intended to serve as a reference for assessing the potential of CCUS as part of industrial carbon integration efforts. Additionally, the government aims to develop CCUS hubs in strategic locations to build a complete ecosystem capable of generating economic spillover benefits in those areas.

Malaysia possesses an estimated carbon storage capacity of 13.3 gigatonnes, which is among the largest in the region. The available storage sites could accommodate CO2 captured from foreign sources, potentially offsetting the high costs associated with developing CCUS hub infrastructure.