Malaysia Well-positioned To Lead In Energy Transition Financing - TNB Chief New Energy Officer
KUALA LUMPUR, June 21 (Bernama) -- Overwhelming response to two Islamic bond issuances by Tenaga Nasional Bhd (TNB) totalling RM2.5 billion for energy transition projects shows that Malaysia is well-positioned to lead in energy transition financing within the region.
These two sukuk issuances in 2026 which comprised RM1 billion for solar in May and RM1.5 billion for hydro in March, were both oversubscribed by five times, TNB’s chief new energy officer Mohd Zarihi Mohd Hashim said.
He said TNB’s recent experience reflects this trend, alluding to the massive investor demand gaining momentum regionally as well as globally.
“This outcome indicates strong investor appetite for well-prepared, bankable renewable energy assets backed by clear structures and robust counterparties,” he said.
Mohd Zarihi was sharing his perspective at the Energy Transition Conference 2026 (ETCon26) held earlier this month on how Malaysia could translate available funding into well-structured projects that support national net zero ambitions.
He said Malaysia’s National Energy Transition Roadmap (NETR) estimates a financing requirement of RM1.2 trillion to RM1.3 trillion over the next 25 years, or approximately RM50 billion annually.
Globally, US$2.3 trillion was deployed towards energy transition projects in 2025 alone, with these figures suggesting that capital availability is not the primary constraint.
Mohd Zarihi said the panel discussion at ETCon26 noted that the more pressing challenge lies in the speed and scale of project deployment.
Projects require stronger preparation, clearer contractual arrangements and more stable policy signals in order to unlock capital efficiently.
Risk-sharing mechanisms, including blended finance, are expected to play an important role, particularly for smaller developers and emerging technologies, he said.
The overwhelming response to TNB’s two sukuk issuances is clearly indicative of massive investor demand.
The robust appetite reflects strong institutional confidence in the power utility's energy transition initiatives and the NETR’s target to reach net-zero emissions by 2050.
Energy transition financing would include projects for renewable energy such as solar and hydro, green hydrogen, carbon capture, energy efficiency, advancing electric mobility and energy-related initiatives.
Mohd Zarihi said that financing for energy transition projects is expanding rapidly, placing greater emphasis on whether projects are bankable and ready to receive capital.
Elaborating on Malaysia being ready to lead in energy transition financing within the region, he said regulatory frameworks and climate-related guidelines are in place, and capital markets have demonstrated support for transition-focused instruments.
“The priority now is to accelerate the translation of capital into bankable projects, resilient infrastructure and scalable deployment that support the country's transition ambitions,” he said.
-- BERNAMA