Kuala lumpur: Malaysia Debt Ventures Bhd (MDV) has approved green technology project financing for over 148 companies, amounting to RM2.26 billion, as announced by Science, Technology, and Innovation Minister Chang Lih Kang. The minister made this announcement while addressing the Dewan Rakyat during the Minister’s Question Time.
According to BERNAMA News Agency, MDV initiated a RM2 billion sukuk programme in 2022 aimed at financing technology-based projects and contracts under its mandate. The proceeds from this sukuk are utilized by MDV to offer green technology financing, which is backed by three government initiatives, including the Green Technology Financing Scheme (GTFS).
Minister Chang highlighted the government’s expansion of the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) to include hydrogen technology. This expansion also covers import duty and tax exemptions for renewable energy equipment, such as hydrogen-related systems. Additionally, a 100 percent Investment Tax Allowance (ITA) on hydrogen project capital expenditure for ten years is provided, allowing deductions of up to 100 percent from statutory income.
In response to a query from Rodiyah Sapiee (GPS-Batang Sadong) on government incentives to boost the hydrogen economy, Chang mentioned that several policy measures are under consideration to lower the cost of hydrogen production. These measures include renewable energy tariff packages, relaxed grid access, the use of Renewable Energy Certificates (RECs), and the allocation of specific land to expedite infrastructure development.
Addressing a supplementary question about establishing a Hydrogen Investment Zone, Chang stated that such a zone could enhance Malaysia’s economic growth and position the country as a regional hydrogen hub and a competitive investment center in the Asia Pacific. He also mentioned that MOSTI has formed a working group to implement incentives under the Hydrogen Economy and Technology Roadmap (HETR).
This working group serves as a platform to coordinate the national hydrogen economy agenda, engaging with other agencies and ministries like the Ministry of Finance and the Ministry of Investment, Trade, and Industry. The group is tasked with formulating a comprehensive incentive package that includes specific energy tariffs, fiscal incentives such as GITA and pioneer status, import tax exemptions, and infrastructure support.