UEM Group’s Strategic Partnerships To Accelerate Malaysia’s Transition to Renewable Energy

UEM Group Berhad (UEM Group, the Company), a wholly-owned subsidiary and the green investment platform of Khazanah Nasional Berhad (Khazanah) will be taking a proactive approach to further develop green industry in the country with an aim of creating green domestic champions, driving Malaysia’s decarbonisation agenda, and create high-quality employment opportunities for Malaysians.

Led by its newly formed and wholly-owned subsidiary, UEM Lestra Berhad (UEM Lestra), UEM Group’s plans for the next five years (2023 to 2027) are to strengthen and organically grow the green assets and operations of its other subsidiaries, nurture local and capable green players and form strategic partnerships including joint ventures to undertake projects in these four sectors:

1. Renewables and storage infrastructure such as solar farms, mini hydro plants and biogas;
2. Integrated energy solutions  – green building services, end-to-end energy services such as distributed energy generation technologies and energy efficiency related services;
3. Green or electric mobility including electric vehicle charging infrastructure maintenance and services; and
4. Waste management and recycling including waste treatment and disposal.

“We are long known as Malaysia’s nation-building partner and we will now play the same role but with a greater focus on tackling climate change by supporting and developing the country’s green industries from renewable energy (RE), waste management to green infrastructure and transportation,” said Dato’ Mohd Izani Ghani, Managing Director of UEM Group.

UEM Group plans to strengthen the domestic economic ecosystem and build a competitive green business with a direct and active ownership approach, and ultimately achieve commercial returns. It has identified several capable local and international green energy players with a commendable track record and presence across the country that are seeking the involvement of a strategic investor to expand their operations.

In addition, the Company is currently in talks with several foreign investors who are keen to invest in the development of RE in Malaysia, details of which will be announced before the end of this year (2023).

“We intend to lead the country’s decarbonisation agenda and this includes supporting the Government’s efforts to transition towards sustainable energy solutions and to be a carbon-neutral nation, achieving a 70% RE capacity in the country’s electricity supply by 2050.

“We will also be working towards enhancing the domestic green capabilities over the long term and increasing the country’s competitiveness by upskilling and developing local workforce talent. Our aim is twofold – to create more jobs and offer high-quality employment opportunities,” said Dato’ Mohd Izani.

He added that to finance the Company’s foray into green industries, UEM Group will be tapping into the Islamic bond market and is currently putting in place an RM7 billion Sustainable and Responsible Investment (SRI) sukuk programme from which the proceeds will be used to finance investments to be undertaken by UEM Lestra.

Established in 1966 and responsible for many of Malaysia’s key infrastructure projects, UEM Group’s other core businesses for which it owns majority stakes include Expressways (PLUS Malaysia Berhad), Township & Property Development (UEM Sunrise Berhad), Engineering & Construction (UEM Builders Berhad and Cement Industries of Malaysia Berhad or CIMA) as well as Asset & Facility Management (UEM Edgenta Berhad).