Lack of local company participation in renewable energy — Jomo

KUALA LUMPUR: Malaysia has enormous potential in the renewable energy sector but unfortunately there is a lack of participation by local companies in this areas, says economist Prof Jomo Kwame Sundaram.

Jomo said although Malaysia was the largest solar panel exporter to the United States, most of the participants in the market were foreign companies based in Malaysia.

“The whole world is concerned about global warming and the energy sector has a huge potential to grow. Unfortunately, we do not have many local companies that are involved in green energy yet.

“We need to start incubating our local industries to be internationally competitive and the fundamentals are already there. It is not that we have to map it from scratch,” he told reporters here yesterday after a panel discussion organised by Khazanah Research Institute.

Jomo was one of the many panelists, during the panel discussion, who shared his views on the country's economic performance.

He also said that industries and relevant authorities need to rethink on how to resume industrialisation under the present circumstances.

“The world economy has changed a lot from since the 90s when we were industrialising. In this situation, we have to admit that some of the policies are outdated and we need to update them,” he said.

Jomo also stressed that new jobs that were created today needed to have value-added unlike the service sector that only create traditional jobs.

“In this scenario, expanding government employment is not productive. In order to be internationally competitive, industries have to address its weaknesses and identify its strength,” he said. — Bernama