MIDA Steps Up Local Vendor Integration In Renewable Energy Supply Chain

By Vikneswaran Raman

KUALA LUMPUR, Oct 13 (Bernama) -- The Malaysian Investment Development Authority (MIDA) is stepping up efforts to integrate local companies into the renewable energy (RE) supply chain through a dedicated programme that translates green investments into direct business opportunities for domestic companies.

MIDA Deputy Chief Executive Officer (Investment Development) Zuaida Abdullah said the Renewable Energy (RE) Supply Chain Programme, held in conjunction with the International Greentech & Eco Products Exhibition and Conference Malaysia (IGEM) 2026 recently, connects Malaysian manufacturers and service providers with strategic anchor companies.

The RE Supply Chain Programme featured targeted business-matching sessions involving 25 Malaysian manufacturing and services companies, which engaged directly with the anchor companies to showcase their capabilities, explore potential supplier and service provider opportunities, and position themselves to participate in major RE projects nationwide.

IGEM 2026, held at the Kuala Lumpur Convention Centre (KLCC) from Oct 7 to 9, saw MIDA targeting RM4 billion in RE investment leads.

Zuaida said MIDA aims to mobilise RM305 billion in green investments by 2030, following Malaysia’s achievement of RM45.8 billion in green investments, including RM12.5 billion in RE.

“Between 2023 and 2025, MIDA approved nearly RM10 billion in RE investments spanning solar, mini-hydropower and bioenergy projects, while in the first half of 2026 alone, Malaysia approved RM218.5 billion in total investments, expected to generate more than 99,000 jobs.

“However, MIDA measures investment success not simply by capital committed, but by what a project leaves behind in Malaysia. Our New Incentive Framework for the manufacturing sector rewards outcomes such as local supplier development, technology transfer and quality jobs. This is our industrial policy in action,” she told Bernama in an exclusive interview recently.

Zuaida said Malaysia’s RE sector should prioritise local companies and talent, backed by stable policies, credible suppliers and a skilled workforce to attract investments and create long-term industrial opportunities.

She added that major project owners, including TNB Power Generation Sdn Bhd and TNB Renewables Sdn Bhd, serve as strategic anchors that typically award contracts to Engineering, Procurement, Construction and Commissioning (EPCC) contractors.

“EPCC contractors play a critical role in coordinating procurement, installation and testing, as well as identifying local vendors for specialised components such as solar photovoltaic (PV) modules, inverters, mounting structures and cabling.

“MIDA’s role is to bridge the access gap and ensure domestic companies meet the technical standards and qualifications required by these anchor developers,” she said.

The initiative also supports the sixth Large Scale Solar (LSS6) programme, which incorporates Battery Energy Storage Systems (BESS) with an aggregate capacity of 2,650 megawatts (MW).

Under LSS6, a preference policy introduced by the Ministry of Energy Transition and Water Transformation (PETRA) gives priority in competitive evaluations to bidders using locally manufactured solar PV modules. 

Under its #InvestLokal framework, MIDA named five domestic firms as “Renewable Energy Local Champions” at IGEM 2026 after they secured high-value contracts from strategic anchor companies.

They are Alliance MEP Sdn Bhd (advisory engineering); Reactive Energy Sdn Bhd (advanced grid integration); Deltaspec (M) Sdn Bhd (energy storage solutions); P.E.S.B. Engineering Sdn Bhd (routine servicing and maintenance); and SAA Engineering & Marine Sdn Bhd (specialised marine technical capabilities).

“These companies prove that Malaysian firms can contribute far beyond general contracting, delivering technically demanding, high-value solutions across different stages of RE development,” she said.

To sustain local supply chain integration, MIDA is also addressing human capital needs under the National Energy Transition Roadmap (NETR), which targets up to 310,000 green jobs by 2050, alongside a long-term need for 62,000 certified skilled workers.

Zuaida highlighted that MIDA is promoting industry-academia collaboration through Technical and Vocational Education and Training (TVET) upskilling and university initiatives. These include the PRIME Talent Hub with MARA, green job education centres at Universiti Teknologi Malaysia (UTM) and Universiti Malaysia Pahang Al-Sultan Abdullah (UMPSA).

She also welcomed the green and RE initiatives announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2027 last Friday, including RM1.5 billion in investments to develop solar parks for government buildings and a dedicated 150 MW allocation under the LSS6 project set aside specifically for Bumiputera companies to foster inclusive participation in the green economy.

In addition, Tenaga Nasional Bhd (TNB) will invest RM15 billion to strengthen the national grid, while UEM Lestra will invest RM1 billion to implement an energy storage system project at the Kuala Lumpur International Airport and a one-gigawatt hybrid energy project in Johor.

MIDA also welcomed the announcement that the RM1 billion KWAP Climate Fund would be fully utilised for green projects, alongside the extension and enhancement of GITA tax incentives, including investment tax allowances of up to 100 per cent, until Dec 31, 2030, to promote RE, decarbonisation and green technology adoption.

-- BERNAMA