KUALA LUMPUR: The government plans to boost investments in the biomass industry to RM10 billion over the next five years by measures such as formulating a comprehensive biomass policy and developing local technology.
Other measures are accelerating the development of high-value added products and services as well as promoting the utilisation of high value-added biomass products, according to the 12th Malaysia Plan (12MP) 2021-2021 document released by the Economic Planning Unit (EPU) today.
“The biomass industry will be shifted from producing low-value to high-value biomass-based products,” it said, adding that the measures will also contribute to creating new jobs and protecting the environment through the reduction of greenhouse gas emissions.
On formulating the policy, the document said a comprehensive framework will be formulated to ensure sustainable development of the industry and unlock its economic potential.
“The policy will prescribe measures to strengthen collaboration and coordination among related agencies to ensure effective implementation,” it said, adding that an effective business model will be developed to facilitate better profit-sharing mechanisms among stakeholders along the value chain.
The government will intensify its efforts to increase the domestic utilisation of biomass-related products and leverage its potential in generating high-value exports.
The EPU said the products would be branded as an important component of the green agenda.
“A strategic communication plan would be crafted to streamline all biomass public awareness, education programmes, advocacy efforts as well as intensifying social public-private collaborations to explore and penetrate new markets,” it said in the document.
The EPU said the private sector will be encouraged to invest in research-driven activities related to biomass through financial assistance and advisory services.
Additionally, the document said, existing incentives such as the Green Technology Financing Scheme, Green Investment Tax Allowance, and Green Income Tax Exemption will be enhanced to attract more investors include micro, small and medium enterprises (MSMEs).
It said incentives would be introduced to encourage the development of the collection, aggregation, and pre-treatment facilities for biomass feedstock to strengthen the value chain.
Financial assistance for logistics will be provided to attract companies and cooperatives to actively participate in logistics services, it said.
“These initiatives will facilitate efforts in ensuring consistency of feedstock supply. Meanwhile, financial institutions will be actively engaged to increase awareness of the prospects in the biomass industry,” the EPU said.
It said the 12MP, which is aligned to the 2030 agenda, has been drawn up based on extensive engagements with various stakeholders, including ministries, state governments, private sectors, civil society organisations, as well as online engagements with the public. – Bernama
