KUALA LUMPUR - The Malaysian Gas Association (MGA) is urging the government to maintain the current policies and roadmaps related to energy, such as the National Energy Policy (NEP) 2022-2040, Gas Masterplans for Sabah and Sarawak and full gas market liberalisation in Budget 2023.
In a statement today, the nation's lead advocate for the Malaysian gas industry lauded the Ministry of Finance’s initiative to give industry players the chance to share their views on Budget 2023 at a dialogue session held in Putrajaya.
MGA said the Low Carbon Nation Aspiration 2040 outlined in the National Energy Policy (NEP) 2022-2040 shows that Malaysia is on the right path to address the climate change agenda at the national level with pragmatic policies in place.
Speaking on behalf of industry players across the Malaysian gas industry value chain, MGA has urged the government to maintain the country’s climate commitments, especially the aspiration to achieve the net zero emissions target as early as 2050.
MGA said as the cleanest fossil fuel, natural gas plays an important role in balancing the energy trilemma, providing clean, secure, reliable and flexible energy.
It also fuels the government’s efforts in ensuring that the nation meets its greenhouse gas emissions reduction target of 45 per cent of gross domestic product by 2030, without jeopardising energy security.
"With multiple sources and an extensive network of gas delivery infrastructures with reliability exceeding 99 per cent, natural gas plays a significant role in fuelling the economy by providing continuous supply of energy, particularly in the power generation sector, thus ensuring energy security and increasing energy access.
"Natural gas, combined with other low carbon and renewables gases, is set to play an important role in realising the aspirations under the NEP 2022-2040 and Malaysia's pathway to achieving carbon neutrality," it said.
The MGA also appreciated the government's efforts to include the association in drafting the policies and roadmaps that are crucial in the advancement of sustainable Malaysian gas industry.
"MGA believes that the synergy between policymakers and the industry is important for our country as we address the energy trilemma and embark on a pragmatic and orderly energy transition towards achieving Net Zero Emissions.
"Moving forward, as the bridge between policymaker and industry players, MGA offers to participate in the development of policies and pathways towards achieving Net Zero emissions,” it added.
It noted that natural gas remains the single largest energy source in Malaysia, supplying around 42 per cent of its total primary energy supply in 2019.
More importantly, the Malaysian gas industry brings in over RM135 billion per annum to Malaysia’s socio-economic growth and creates over 80,000 jobs for the wider economy.
"Fostering the development and expansion of the industry’s capability and capacity is therefore crucial in policy planning and initiatives," it said.
In supporting the country’s sustainability agenda, MGA has also urged the government to maintain parts of Budget 2023 that will encourage the industry to invest in technologies and innovation that will decarbonise the energy sector including incentives for Carbon Capture and Storage. - Bernama