UEM LESTRA SETS ASIDE RM1.5 BILLION FOR INDUSTRIAL DECARBONISATION
KUALA LUMPUR, 14 August 2024 – UEM Lestra Berhad (UEM Lestra), a wholly-owned subsidiary and the green industry arm of UEM Group Berhad (UEM Group), has set aside RM1.5 billion which it aims to deploy in the next 24 months, investing in decarbonising Malaysia’s industrial parks.
This was revealed by Datuk Amran Hafiz Affifudin, Managing Director of UEM Group and Chairman of UEM Lestra who said that the move is part of UEM Group’s agenda to spur domestic direct investment (DDI), which will lead to job creation and attract foreign direct investment (FDI) to Malaysia.
“Operating in a sustainable industrial park is one of the top priorities for foreign investors, especially manufacturers. We need to ramp up our efforts to explore setting up new sustainable industrial parks and at the same time decarbonise existing ones by upgrading current infrastructure via innovative technologies and methodologies that can be integrated into existing operations.
“This could potentially involve the integration of renewable energy sources, such as solar and the implementation of other advanced energy management systems and technology to optimise consumption patterns.
"Investors are hungry for zero-emission operations. As Malaysia continues to attract significant FDI, initiatives such as the decarbonisation of industrial parks are expected to boost local economy, drive sustainable growth and position Malaysia as a key global player,” added Datuk Amran.
UEM Lestra aims to be at the forefront of these efforts, driving the transition towards a sustainable economy and leading the response to climate change, in line with Malaysia’s aspiration of achieving net zero carbon emission by 2050.
Plans for a new Renewable Energy (RE) industrial park are already in the works. In July 2023, UEM Lestra, in collaboration with local and international partners, announced that it is pioneering the development of one (1) gigawatt (GW) hybrid solar photovoltaic power plant integrated with a RE industrial park in Malaysia – a project that is part of a flagship initiative of the National Energy Transition Roadmap (NETR).
According to Harman Faiz Habib Muhamad, Chief Executive Officer of UEM Lestra, the Company is looking at expanding its green assets and operations through strategic partnerships as well as via a direct and active ownership. It plans to nurture domestic green champions such as Cenergi SEA Berhad, which it acquired last year.
“Over the long term, we plan to establish a competitive green platform in key energy sectors and emerging growth areas, such as renewables and storage infrastructure, integrated energy solutions, green and electric mobility, as well as waste management and recycling. These initiatives will be funded through our overall RM7 billion sustainable and responsible investment (SRI) sukuk programme.”
"We are committed to reducing environmental impacts through strategic clean energy efforts. Our focus on sustainability extends beyond reducing emissions to fostering a new way of thinking that prioritises circular economy models and resource efficiency for the benefit of both the economy and the environment,” added Harman.
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