Kuala Lumpur: Malaysia’s solar sector is unlikely to be significantly affected by the new United States import duties, as local companies typically do not manufacture solar panels for export.

According to BERNAMA News Agency, Plus Xnergy Sdn Bhd’s group chief executive officer Ko Chuan Zhen emphasized that local green energy demand remains robust under the National Energy Transition Roadmap (NETR), which aims for 70 per cent renewable energy in Malaysia’s energy mix by 2050. Ko noted that the new import duties do not impact Malaysia’s goals under the NETR, stating that Malaysian companies are not primarily solar panel manufacturers.

On Monday, reports emerged that the US government imposed new import duties as high as 3,521 per cent on solar imports from Malaysia and three other Southeast Asian countries, citing benefits from Chinese subsidies and unfair pricing. This follows the US Department of Commerce’s previous decision to impose preliminary anti-dumping and countervailing duties on solar equipment from Malaysia, Cambodia, Thailand, and Vietnam last year.

Ko explained that solar panel manufacturing is more of an upstream business, while most Malaysian companies are engaged in downstream activities like engineering, procurement, and construction (EPC), and project development. He clarified that the new US import duties will primarily impact exports from Chinese manufacturers and will not directly affect the local solar energy ecosystem.

Ko is optimistic about the growth of the local solar power ecosystem, driven by steady domestic demand for clean energy. He also highlighted that Malaysia will continue to attract foreign direct investments from companies seeking clean energy solutions for their operations in the region. The local demand for renewable energy is expected to rise in line with increasing energy needs, thereby driving investment into clean energy infrastructure.