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KICKING OFF THE MEFS ROUNDTABLE SERIES IN VIENNA

The Malaysia-Europe Forum (MEF) is on a mission to engage European stakeholders and to promote knowledge sharing between Malaysia and European countries in the field of sustainability. In pursuit of this, the MEF will kick start its series of roundtables and host a roundtable in Vienna focusing on renewable energy on Tuesday 10th May 2011. It will be held back-to-back with The MEF-Vienna Spring Dialogue 2011, which will be held on Monday, 9th May 2011. The Vienna roundtable will serve as a platform for the exchange of ideas, debate and discussion between Malaysian and European stakeholders, as well as identify opportunities for collaboration between Malaysia and Europe, across business and academia. It will focus on the fact that only recently has a range of renewable energy sources started to become economically viable, driven by targeted subsidies and the assumption of a slow move towards pricing carbon into traditional generating models. However, many questions remain to be answered in relation to the future of energy generation, particularly around renewable energy sources and the technologies aimed at cleaning up existing sources. Perhaps the most sensitive question of all is the desirability of nuclear power and the fact that the zero-carbon energy source continues to generate more debate than power. Should you be interested in participating in future roundtables organised by the MEF, please contact Ms Natasha Zulkifli at the MEFs Kuala Lumpur Secretariat.

A Q U A R T E R LY P U B L I C AT I O N O F T H E M E F

QUARTER 2, 2011

GREEN TECHNOLOGY: THE WAY FORWARD FOR MALAYSIA


A key event in the annual calendar of the Malaysia-Europe Forum (MEF) is the spring dialogue, held every year in a different city in Europe. The MEFs first foray into Europe was at the European Parliament in Brussels in 2009, followed by Munich in 2010. In 2011, the MEF will venture to Vienna and host The MEF-Vienna Spring Dialogue 2011 on Monday, 9th May 2011. An important component of the Malaysian Governments push towards sustainability is the identification of green technology as a key driver of future economic growth for Malaysia and a means to increase the knowledge pool of the country. Given this commitment to the green agenda, the MEF is continuing its area of focus in the green space and is honoured to once again host The Honourable Dato Sri Peter Chin, Malaysias Minister of Energy, Green Technology and Water, as its keynote speaker at The MEF-Vienna Spring Dialogue 2011. Dato Sri Peter has been extremely supportive of the Malaysia-Europe Forums efforts to raise awareness about green technology, in both Malaysia and Europe. His open-minded and humble attitude to learning from Europe, as well as to exploring potential partnerships between Malaysia and Europe, has earned him many admirers. His ministry has also been working tirelessly to raise the level of awareness about green technology, and the International Greentech & Eco Products Exhibition & Conference Malaysia Exhibition (IGEM) is one such platform. IGEM 2010 is reported to have generated MYR 1.2 billion in business dealings throughout its four day duration. The 2nd IGEM will be held in Kuala Lumpur from 7th 10th September 2011. The debate on the use of nuclear power has also become more relevant, not least because of the recent challenges faced by Japan. In addition to this, the tabling of the Renewable Energy Bill and the Sustainable Energy Development Authority Bill in the current Parliament session emphasises Malaysias serious commitment and political will in the green space. DIALOG recently set out to ascertain the priority areas for Dato Sri Peter and his Ministry moving forward for 2011. Below are excerpts of that interview. The Honourable Dato Sri Peter Chin Minister of Energy, Green Technology & Water, Malaysia The Honourable Dato Sri Peter Chin was born on 31st August 1945 and is married with 3 children. He qualified as a Barrister-At-Law from Grays Inn London in 1971. He has been a Member of Parliament from the state of Sarawak since 1986. He was appointed a Minister in 2004 and now heads the Ministry of Energy, Green Technology & Water.

INTERESTED IN AN INTERNSHIP POSITION IN MALAYSIA?


The Malaysia-Europe Forum (MEF) has taken another step forward and embarked on The MEF Young European Internship Programme, as part of its efforts to engage with its stakeholders, in the ever evolving and continuous two-way dialogue between Malaysia and Europe. The MEF, acting as a programme facilitator, will place European interns in Malaysian organizations at no cost to both the intern and the Malaysian employer. This is another of the MEFs efforts towards improving understanding and relations between Malaysia and Europe. By building bridges such as these, the MEF reaches out and engages with European youth, complimenting the MEFs previous efforts to dialogue with its stakeholders on issues relating to trade, economics, business and politics. Malaysia, as a dynamic and vibrant emerging Asian economy is a highly attractive work destination for young adults from Europe. On the flip side, Malaysian employers participating in the Programme will benefit from the input of young enthusiastic graduates and be able to tap into the European interns up-to-date academic knowledge and fresh point of view. Additionally, cultural exchanges such as these may open up further business opportunities for Malaysian companies in Europe. To date, response from Malaysian corporates has been encouraging with the likes of Sime Darby, Top Glove, Berjaya Corporation, Biotechnology Corporation, Silver Bird, Symphony Malaysia, Malaysian Palm Oil Council (MPOC) and Royal Selangor all participating in the programme. Looking to the future, eventually, the MEF intends to carry out a reverse programme and place Malaysian students as interns in European countries. Should you be interested to participate as an intern or if your Malaysian company is interested to hire European interns, please contact the MEFs Kuala Lumpur Secretariat. For more information on this programme, please go to www.mefinternship.org or follow us on Facebook and Twitter.

KUALA LUMPUR SECRETARIAT Office Suite 19 - 9 - 6, Level 9 UOA Centre, 19 Jalan Pinang, 50450 Kuala Lumpur T: +603 2162 8545 F: +603 2162 8546 BERLIN SECRETARIAT Moosdorferstr. 7-9 12435 Berlin, Germany. T: +49 30 9362 4739 F: + 49 30 5369 9801 LONDON SECRETARIAT CHL Chambers, 50 Colney Hatch Lane, London N10 1EA, United Kingdom. T: +44 208 883 7706 F: +44 208 883 7706 www.malaysia-europeforum.com Contact person: Natasha Zulkifli Executive Director, Malaysia-Europe Forum [MEF] natasha@malaysia-europeforum.com For copies of our reports, kindly contact our secretariat.

Can you please elaborate on the Renewable Energy Bill and the Sustainable Energy Development Authority Bill currently being tabled in Parliament? How will this impact on the upcoming feed-in tariff? The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) Bill and the Renewable Energy (RE) Bill are part of the main thrusts under the National Renewable Energy Policy and Action Plan in providing an effective legal framework to support the development of RE. The RE Bill was passed in Parliament on the 4th April 2011, and it contains important provisions describing the implementation of the feed-in tariff (FiT) system and the establishment of an RE Fund. The RE Bill also sets out the roles and responsibilities of both RE developers and the power utilities in the FiT system. The SEDA Bill underlines the role of SEDA Malaysia in the overall development of RE, managing the RE Fund and the FiT system. SEDA Malaysia will be the one-stop agency for RE development and will provide advice to the ministry in driving the RE agenda in Malaysia. The ministry is currently undertaking the preparatory work to establish SEDA Malaysia and this agency will be legally established after the SEDA Bill is approved by the House of Parliament. Both Bills are expected to be enforced in the second quarter of 2011. ... continue on page 2

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DIALOG
... continue from page 1 What are the expectations for IGEM 2011? I have to admit by any standards IGEM2010 was a runaway success. However I would like to remind you that creating success and maintaining success are two totally different dimensions. For IGEM2011, the general idea is that there should be an element of continuity from IGEM2010 but having said that, we also envision that IGEM2011 and future IGEMs will evolve into something that is niche or a premium brand. In other words, The Green Technology Hub for this part of the world. So in IGEM2011 you will see this progression towards that goal. In the world of KPIs, everything must be evaluated, measured and verified. In that sense if I were to quantify our targets, we are looking to generate MYR800 million worth of business. This is not back tracking, but something that is realistic. I know the first thing on your mind would be IGEM2010 did MYR1.2 billion, but then again after going into details, we noticed there were certain outliers in the whole equation which we would certainly welcome in IGEM2011 but having said that the evaluation part in coming out with MYR800million cannot be based on outliers. In terms of the numbers of visitors, we forecast there will be an You have been quoted as saying that the decision to set up two nuclear power plants will be made by the Cabinet, after a report has been submitted by the Malaysia Nuclear Power Corporation. Please elaborate on this. The decision to include nuclear as one of the options for generating electricity in Malaysia is a major step towards diversifying our fuel mix. It also marks an important milestone in Malaysias energy landscape as we depart from our traditional policy for meeting electricity demand growth. Admittedly this has not been an easy decision as we had to weigh various options and alternatives as well as benefit and cost issues before deciding to include nuclear as one of the fuels for generating electricity. Arriving at this decision is the first step towards strengthening energy security of the country. However, the final decision to build nuclear power plants will only be made after conducting all the necessary studies, ranging from the feasibility study and environmental impact study to social impact study etc. In addition to the various studies, we With the recent developments involving nuclear plants in Japan, I believe this will be an uphill task for us under the present climate. We will keep exploring all avenues and alternatives to ensure long-term energy security in the country. Can you share with us how the Energy Efficiency Masterplan, scheduled to be announced soon, will impact the average Malaysian? The National Energy Efficiency Master Plan (NEEMP) is a comprehensive plan to drive the country towards using energy resources efficiently. NEEMP consists of a National Energy Efficiency Policy and a long term Energy Efficiency Action Plan which spans 10 years from 2011 2020. This is the first phase of the NEEMP as the government is now initiating efforts for the second phase which will focus on energy efficiency in the transport sector. increase of 15% from IGEM2010, which equates to roughly 100,000 visitors. will also engage all the stakeholders involved while undertaking these studies.

DIALOG
The NEEMP Phase 1 is on electrical and thermal energy, which mainly focuses on the main sectors: industrial, building and equipment. The plan is still in the finalisation stage and we will make the information public when it is approved by the government and we hope to announce it by Q3 of 2011. Once fully implemented, NEEMP is anticipated to save the country a substantial amount of energy and monetary savings as well as GHG avoidance. Do you think the Green Technology Financing Scheme (GTFS) has been effective in achieving its objectives? Is this only available to Malaysian companies or can foreign companies apply as well? The government remains committed in driving the Green Technology Agenda for the nation, a reflection of that among others, is the GTFS. I have to admit there have been a lot of reports in the mass media stating that the GTFS is not moving the way it should move. That is something that my ministry has taken upon itself to resolve. In relation to whether foreign companies can apply, as of now it is something that my officials are looking at, but having said that we still have certain fundamental issues that we would like to settle first.

PUBLIC-PRIVATE PARTNERSHIP IN THE GREEN SPACE


The newly set up Malaysia Green Technology Corporation (GreenTech Malaysia) formerly known as the Malaysia Energy Centre was established to serve as the focal point for the development and promotion of green technology in Malaysia. GreenTech Malaysias mission is to facilitate the realisation of the national green technology agenda through value added promotion, coordination and collaboration programmes, and to fulfil the need for a national energy research centre. Its newly appointed CEO, Dr Nazily Mohd Noor aims to make Malaysia a hub for green technology innovation and manufacturing. Dr Nazily will also participate as a panellist at the upcoming MEF-Vienna Spring Dialogue 2011. DIALOG sought his views on how he intends to take Malaysia to the next level in the green space. What is your vision for the future of Green Technology? Green technology is no longer a buzz word. It is real, it is here to stay and it is the future. As I see it, green technology will predominantly focus on the following elements: energy, environment, sustainability and economics. These criteria will continue to be the cornerstone of green technology, but in the future there will be more to come. Using the energy sector as an example, in the midterm we will see the emergence of renewable fuel or the likes of bio-fuels. This will act as a bridge while we transform from internal combustion engines, that we know of today, to new greener technologies, further reducing our reliance on fossil fuel consumption and thereafter reducing carbon emissions. I also see hydrogen and electrical powered cars as the future and as we all know, R&D in this area is being extensively developed by automotive manufacturers internationally. We are seeing more buildings that harness the natural energy of the
Dr Nazily Mohd Noor Chief Executive Officer, Malaysian Green Technology Corporation The Honourable Dato Sri Peter Chin was born on 31st August 1945 and is married with 3 children. He qualified as a Barrister-At-Law from Grays Inn London in 1971. He has been a Member of Parliament from the state of Sarawak since 1986. He was appointed a Minister in 2004 and now heads the Ministry of Energy, Green Technology & Water.

technology in terms of products, appliances, equipment and systems through standards, rating and labeling programmes; 3. Increase foreign and domestic direct investments (FDIs and DDIs) in the green technology manufacturing and services sectors; and 4. Championing the expansion of local research institutes and institutions of higher learning to expand research, development and innovation activities of green technology towards commercialisation through appropriate mechanisms. Mid-term goals planned for the 11th Malaysia Plan (20162020): 1. Green technology certified products and services becoming the preferred choice in the procurement of products and services; 2. Green technology to have a larger local market share compared to other technologies; 3. Increased production of local green technology products; 4. Increased research, development and innovation of green technology by local universities and research institutions that are commercialised; 5. Expansion of local SMEs and SMIs on green technology into the global markets; and 6. Expansion of green technology applications into most economic sectors Long-term goals planned for the 12th Malaysia Plan (2021 2025) & beyond: 1. Inoculation of green technology into Malaysia culture; 2. Widespread adoption of green technology to reduce overall resource consumption while sustaining national economic growth; 3. Significant reduction in national energy consumption; 4. Improvement of Malaysias ranking in environmental ratings; 5. Malaysia to become a major producer of green technology in the global market; and 6. Expansion of international collaborations between local universities and research institutions with green technology industries. Has Malaysia got sufficient human capital to support its push to go green? Human capital is a real challenge that needs to be addressed

immediately. Although Malaysia attracted almost RM12 billion in investments in FDIs in 2010 from the solar photovoltaic industry, transfer of technology and know-how has been limited due to contentious profit sharing and technological know-how transfer issues. This is unfavourable for the development of local green technology and scientific R&D. As GreenTech Malaysia CEO, how do you balance your stakeholders expectations? Even though GreenTech Malaysia has a mandate, and is expected to play a major coordination and implementation role in progressing Malaysias green agenda, if the Malaysian government solely continues to focus on attracting FDIs, Malaysia will only be a manufacturing hub and we will not be able to become green. It is a tricky balance. Whilst changing behaviour and putting into place sound green technologies takes time and needs to be developed as organically as possible, rapid growth will have its negative impacts on the economy, people and nation. How will green industries contribute to the national GDP? Malaysia has announced plans to reduce carbon emissions by 40 percent by 2020, based on 2005 levels. Growing the supply and demand of green products and services will be vital to achieving these targets. It is estimated that increasing energy efficiency by 40 percent by 2020 would result in cost savings of RM295 billion and by building a vibrant green technology industry, this will bring with it the creation of a range of highly-skilled positions, as has been the case in other nations that have made similar investments. By taking a coordinated effort to jump-start a vibrant green technology industry in Malaysia, we can generate RM7.2 billion of additional GDP/ GNI (Gross National Income) in 2020 and create over 47,000 jobs. This incremental GDP / GNI is driven primarily by growth in revenue from renewable energy service providers, and it is clear to see that green technology is to be one of the new drivers for economic growth.

environment being built using solar panels and new building materials. Better designs, lighter material and nano-technology will all, also, be a part of the technologies focusing on reducing our carbon emissions. From these international green technological developments, there will be increased transfer of technology from nation to nation. It could be due to economic pressure or even political cooperation or collaborative research between universities of different countries. New businesses will also inevitably grow through increased investments as strategic thinking companies position themselves to take advantage of the next growth industry. What are your priorities in the short-term, medium-term and long-term? The short-term goals as outlined in the 10th Malaysia Plan (2011-2015) are: 1. Increase public awareness through advocacy programmes; 2. Ensure widespread availability and recognition of green

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