MDV Approves RM2.26 Bln In Greentech Financing - MOSTI

KUALA LUMPUR, Nov 20 (Bernama) -- Malaysia Debt Ventures Bhd (MDV) has approved green technology project financing for more than 148 companies, amounting to RM2.26 billion to date, said Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang.

He said MDV launched a RM2 billion sukuk programme in 2022 to finance technology-based projects and contracts under its mandate.

In essence, he said, MDV uses the proceeds from its sukuk to provide green technology financing supported by three government-backed initiatives, including the Green Technology Financing Scheme (GTFS).

"The government is also expanding the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) to hydrogen technology, in addition to import duty and tax exemptions for renewable energy equipment, including hydrogen-related systems.

"This includes providing a 100 per cent Investment Tax Allowance (ITA) on hydrogen project capital expenditure for 10 years, which can be deducted up to 100 per cent from statutory income," he said during the Minister's Question Time in the Dewan Rakyat today.

He was responding to Rodiyah Sapiee (GPS–Batang Sadong), who asked about government incentives to spur the hydrogen economy.

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Chang said several policy measures were being considered to reduce the cost of hydrogen production, including renewable energy tariff packages, relaxed grid access, the use of Renewable Energy Certificates (RECs), and the gazettement of specific land to accelerate infrastructure development.

On Rodiyah’s supplementary question regarding the proposal to establish a Hydrogen Investment Zone, Chang said such a zone could accelerate the country's economic growth and position Malaysia as a regional hydrogen hub and a competitive hydrogen investment centre in the Asia Pacific.

He noted that MOSTI has also set up a working group to implement incentives under the Hydrogen Economy and Technology Roadmap (HETR).

"It is a platform that coordinates the national hydrogen economy agenda, including engagement with other agencies and ministries such as the Ministry of Finance and the Ministry of Investment, Trade and Industry," he said.

The working group would also formulate a comprehensive incentive package covering specific energy tariffs, fiscal incentives such as GITA and pioneer status, import tax exemptions, and infrastructure support, he added.

-- BERNAMA