MOSTI’S AGENCY MDV APPROVES RM122.65 MILLION UNDER THE NATIONAL ENERGY TRANSITION FACILITY (NETF)
KUALA LUMPUR, 27 AUGUST 2025 – The Ministry of Science, Technology and Innovation (MOSTI) is pleased to announce that Malaysia Debt Ventures Berhad (MDV), an agency under its purview, has approved RM122.65 million in financing for six (6) technology-based companies that are undertaking energy transition projects under the National Energy Transition Facility (NETF), which includes RM40.09 million in targeted incentives designed to lower financing costs and enhance the overall bankability of the projects, through mechanisms such as rebates and credit enhancement subject to MDV’s assessment.
The approved companies comprise five (5) that focus on renewable energy solutions, including solar and biogas, and one (1) that focuses on energy efficiency initiatives.
Introduced under Budget 2025 by the Ministry of Economy, the NETF forms part of the National Energy Transition Roadmap (NETR), with MDV appointed as one of its implementing agencies. Under this mandate, MDV is responsible for managing up to RM200 million in NETF funding to provide incentives that ensure project viability. MDV will also leverage its own financial resources to broaden access to financing and ensure sufficient funding for eligible energy transition projects.
These approvals underscore MDV’s commitment to supporting Malaysia’s low-carbon energy transition by directing capital into high-impact energy projects. Under the NETF, this effort is expected to accelerate green innovation and clean energy adoption, which will in turn drive economic growth, create jobs, and strengthen the country’s energy resilience.
The NETF serves as a catalytic financing mechanism to accelerate Malaysia’s shift to a sustainable economy. With a focus on renewable energy, energy efficiency, bioenergy, hydrogen, green mobility and carbon capture projects, the NETF is designed to mobilise private sector participation and support Malaysia’s broader emission reduction agenda. Malaysia aims to achieve net zero greenhouse gas emissions by 2050, with an interim target of reducing economy-wide carbon intensity by 45% relative to 2005 levels by 2030. In this regard, the NETF supports the implementation of the NETR’s Responsible Transition Pathway 2050, which outlines key milestones such as reaching 31% renewable energy capacity by 2025, 40% by 2035 and 70% by 2050.
YB Chang Lih Kang, Minister of MOSTI, stated, “Malaysia’s energy transition is a key pillar of the nation’s sustainability agenda, and the NETF marks a crucial step in realising the targets set under the National Energy Transition Roadmap (NETR). As a key funding agency under MOSTI, MDV is well-positioned to deploy impactful funding to high-impact energy transition initiatives. MOSTI will continue to provide strategic support to ensure the effective implementation of the NETF, which is in line with the MADANI Government’s commitment to sustainable development, industry collaboration, and advancing Malaysia as a regional leader in low-carbon innovation.”
The implementation of the NETR is expected to significantly contribute to national development, with projections by the Ministry of Economy indicating the creation of up to 350,000 new jobs and a GDP uplift of between 10% and 15%. These targets are underpinned by catalytic funding mechanisms like the NETF, which aim to drive clean energy adoption and inclusive, broad-based, sustainable economic growth. As one of the implementing agencies under the NETF, MDV plays an important role in supporting this national aspiration.
YB Wong Chen, Chairman of MDV, said, “MDV is pleased to have been entrusted by the Government as one of the key partners in accelerating the nation’s energy transition from a traditional fossil fuel-based economy to a high-value, green, and sustainable economy. Through the deployment of critical funding for energy transition projects, we aim to drive renewable energy adoption, foster green innovation, and contribute to socio-economic progress. Our focus remains on achieving tangible outcomes that align with the NETR’s long-term vision for a low-carbon future and addressing the real and pressing challenges of climate change.”
In total, MDV has targeted to finance approximately 20 to 30 technology projects or companies under the NETF, depending on the financing amount per project. These initiatives are expected to not only significantly reduce carbon emissions but also unlock new economic opportunities and propel sustainable growth for Malaysia. By directing capital into crucial areas like bioenergy, green mobility, and hydrogen championed by MOSTI, as well as other energy transition levers, MDV is well-positioned to support the country’s decarbonisation goals. These efforts align with Malaysia’s broader strategy to advance energy transition and cement its leadership in clean energy innovation and sustainability.
Meanwhile, Rizal Fauzi, Chief Executive Officer of MDV, emphasised, “As part of our mandate to support the development of technology-driven sectors, MDV remains committed to its role as a crucial enabler of Malaysia’s energy transition journey. With the NETF allocation, we will prioritise efficient deployment of funds to innovative energy transition projects and the energy transition value chain.”
“Our focus is on ensuring that technology-based companies, particularly SMEs and start-ups, will have adequate access to the financing needed to foster growth and sustainable energy solutions that contribute to Malaysia’s progress toward a resilient energy future,” Rizal concluded.
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