Japanese Companies Keen On Decarbonisation Projects In Malaysia

By Christine Lim

KUALA LUMPUR, March 30 (Bernama) -- Japanese companies are keen to participate in advanced sustainable development in Malaysia’s decarbonisation initiatives, said Japan External Trade Organisation (Jetro) Kuala Lumpur.

This can be in environmental technologies and infrastructure, its managing director Koichi Takano said.

Jetro aims to facilitate these partnerships among local and Japanese companies via the Asia Zero Emission Community (AZEC) platform in carbon neutrality/net-zero emissions involving 11 nations including Malaysia and Japan, he said.

“If a joint crediting mechanism (JCM) that contributes to emission reductions is agreed upon between Japan and Malaysia, the number of decarbonisation projects and investments by Japanese companies is expected to increase further,” Takano said in an interview with Bernama.

During Japanese Prime Minister Shigeru Ishiba’s visit to Malaysia this year, he said Japan aims to expedite discussions and sign the JCM with Malaysia at the earliest opportunity.

bootstrap slideshow

The JCM, via the use of leading decarbonising technologies and carbon credits, will help to reduce greenhouse gas (GHG) emissions and contribute to sustainable developments.

“With Malaysia assuming the ASEAN chair in 2025, it is poised to lead sustainable development efforts across the region in decarbonisation initiatives,” according to Takano.

During Ishiba’s visit to Malaysia, both countries expressed intentions to promote collaboration in carbon dioxide capture and storage (CCS), ammonia power generation and power grid, technical cooperation in ocean thermal energy conversion and the biomass, hydrogen and liquefied natural gas sectors. 

He said the harmful impact of environmental issues is one of the main themes of the ASEAN chair and the Osaka World Expo this year and decarbonisation addresses this.

Jetro published a product and service list of 47 Japanese companies on March 28 that contribute to decarbonisation in Malaysia on its website.

The webpage link is: https://www.jetro.go.jp/malaysia/research/_518451.html

The products and services are classified by six energy transition levers and 10 flagship catalyst projects specified in the National Energy Roadmap (NETR), the pillar of Malaysia’s decarbonisation policy as announced in 2023.

“Each Jetro office in ASEAN has also prepared this decarbonisation catalogue. We would like to explore opportunities for Japanese companies in Malaysia and throughout ASEAN,” Takano added.

According to a Jetro survey, 83.5 per cent of Japanese companies in Malaysia are either actively working on decarbonisation or have plans to do so, the highest percentage among major ASEAN countries,” he remarked.

The Japanese government is also actively supporting decarbonisation efforts in ASEAN countries, he said.

Japanese Companies See Potential in Malaysia

Some Japanese companies based in Malaysia are already using Japan-based Zeroboard’s greenhouse gases (GHG) emissions calculation and visualisation services, its Thai unit Zeroboard (Thailand) Co Ltd said.

Its managing director and head of Asia-Pacific Regional Business Shintaro Suzuki sees potential in the Malaysian market.

Zeroboard is among a list of companies in Jetro’s decarbonisation catalogue. It has partnered companies in 90 countries.

“We aim to collaborate with Malaysian companies to promote decarbonisation management within ASEAN,” Suzuki said in an interview with Bernama.

Suzuki said Zeroboard aims to collaborate with energy, manufacturing, electronics and financial institutions to expand its business in Malaysia.

“We intend to promote cooperation with local partners to support decarbonisation management,” he said.

In Kuching, Sarawak, where the Chitose Group operates the world’s largest microalgae production facilities, there are plans to expand it to 100 hectares by 2027 from the current five.

Chitose group’s holding company Chitose Bio Evolution Pte Ltd executive officer Ryosuke Koike said the Japanese government has given about US$400 million (US$1=RM4.43) to expand its microalgae production and develop products using microalgal biomass for its financial years 2023 to 2030.

Chitose Group is also listed in Jetro’s decarbonisation list. Besides Malaysia, it has operations in Japan, Singapore, Brunei, Thailand and Vietnam. It manages sustainable agriculture in Cameron Highlands, Malaysia.

“Malaysia is an important base for our photosynthesis business because of the extremely favourable environment. Blessed with a stable climate and abundant solar radiation, it has an ideal environment to produce algae and crops,”  Koike told Bernama.

-- BERNAMA