RM60-90b needed in next 10 years to fund critical projects: Nik Nazmi

KUALA LUMPUR: In the next 10 years Malaysia requires RM60-90 billion to fund critical projects such as expanding public transportation, strengthening grid infrastructure, and upskilling the workforce., said Natural Resources and Environmental Sustainability minister, Nik Nazmi Nik Ahmad.

“A crucial component will be a robust and adaptable grid to handle the increasing reliance on renewable energy sources. The estimated cost for grid development is likewise substantial, reaching RM180 billion (USD38.6 billion) by 2050, to accommodate Malaysia’s clean energy ambitions,” he said at the MoU signing ceremony between Bursa Malaysia and the UK government’s Mobilising Institutional Capital Through Listed Product Structures (Mobilist) programme yesterday.

Bursa Malaysia has entered into a collaboration with the UK government’s Mobilist programme, with the aim to bolster investments supporting the energy transition and advancing the United Nations’ Sustainable Development Goals (SDG) in Malaysia.

Nik Nazmi said developed countries must play their part in climate change and environmental degradation because they are wealthier and because they have benefitted as well as continue to benefit from the huge carbon sinks that exist in developing regions.

“Climate action will have little practical meaning if it is not linked with climate justice,” he added.

The UN Conference on Trade and Development estimates there is a staggering US$4 trillion (RM21.5 trillion) annual funding gap for developing countries to achieve the SDG by 2030.

Nik Nazmi said that countries like Malaysia are seeking to be proactive and responsible and understands trust and credibility is crucial, including in climate action.

“And we believe our actions thus far warrant both from our counterparts in Western countries and the international community,” he added.

Furthermore, he said considering the varying stages of decarbonisation technology development across countries, it is clear that progress relies heavily on alternative energy sources and strong regional and international collaboration.