Strengthen Fiscal Support, Incentives For Industry -- Malaysian Gas Association

KUALA LUMPUR, Oct 1 (Bernama) -- Malaysian Gas Association (MGA) has called on the government to strengthen fiscal support and incentives for the natural gas industry in Budget 2026, and to act on three immediate priorities for the industry.

In a statement today, MGA said only then can the industry sustain its contribution to the economy while helping Malaysia accelerate its energy transition and safeguard energy security.

MGA president Abdul Aziz Othman said the first step is to reinstate full eligibility for cogeneration systems under the green investment tax allowance (GITA) to restore alignment with the National Energy Transition Roadmap (NETR) and support proven energy-efficiency technology.

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“The second priority is to strengthen incentives for biogas and biomethane, including capex support and higher tax exemptions for service providers so they can scale as part of Malaysia’s renewable energy mix,” he said.

“And third, recognise low-carbon marine fuels, including liquefied natural gas (LNG) bunkering, as a strategic investment sector, backed by structured incentives and a clear regulatory framework to strengthen Malaysia’s ports and competitiveness,” he said.

MGA said the urgency is real, and as the 2025 ASEAN chair, Malaysia must lead by leveraging the capabilities it already has.

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“The sectors highlighted above may not dominate headlines, but as strategic investment sectors, they carry long-term impact in reducing emissions, driving economic spillovers and reinforcing Malaysia’s credibility in the region.

“Across ASEAN, countries are already moving ahead based on their respective strengths, from Singapore’s LNG bunkering trials to Vietnam’s rapid renewable energy growth. Malaysia cannot afford to stand still,” it added.

-- BERNAMA