KUALA LUMPUR, Feb 24— Malaysia is among the top three global investment destinations for renewable energy, according to BMI Research that cited the country’s outlook and policies in the sector.
In its “Asia Renewables RRI: Investment Opportunities” report, BMI Research said Malaysia, Singapore and Australia offered the best risk-to-reward ratios for such investments.
“The economic and politically stable business environments of Singapore, Malaysia and Australia appear at the top of our Renewables Risk/Reward Index, despite the fact that growth in these markets will be slower than in riskier regional neighbours,” BMI Research said in the report released today.
The report said Singapore topped the list on account of its stable economic and political outlook, and its “very low risk business environment.”
Malaysia’s strong attractiveness was credited to its “buoyant macroeconomic outlook” as well as its projected growth in renewable energies capacity and generation, particularly wind and solar power.
“Momentum behind Malaysia’s renewables sector has been gathering pace, in line with the country’s National Renewable Energy Policy and Action Plan and the government’s feed-in tariff scheme.
“This supportive energy policy, alongside relatively good access to finance and well-developed grid infrastructure results in Malaysia’s risks profile outperforming the regional average as well,” the report said.
BMI Research said that Australia scored “less well” for rewards for its renewable energies market, as the country is in the midst of a slowdown, owing to years of waning government support for the sector.
It said that that the renewable energy markets in the Philippines, Thailand, Vietnam and Indonesia are all situated in the middle of the regional rankings, as increasing investment opportunities are balanced against relatively weaker risks environments.
Cambodia, Laos, Bangladesh and Myanmar were clustered as underperforming renewables markets in the region.
