ASEAN countries, in particular Malaysia and Thailand, are rapidly developing projects in the green economy and alternative energy sector.
2012 saw Malaysia on the road towards embracing green technology as a “way of life” and a catalyst for new economic growth with government support, said Mahesh Ramanujam, CEO of the US Green Building Council and President of the Green Building Certification Institute according to news agency Bernama.
“Malaysia is uniquely poised right now for major growth in green technology as the world wakes up to it and embraces the use of green products,” Ramanujam said.
The government foresees green technology as playing a major role in ensuring Malaysia remains competitive in the international market as global demand for sustainable products increases.
Prime Minister Datuk Seri Najib Tun Razak has recently announced that renewable energy is expected to create $23 billion economic activity by 2020, support 50,000 jobs and reduce carbon emission by around 40 per cent.
He also said that Malaysia’s green industries are already valued at $20 billion and grew by six per cent between 2010 to 2011, adding that green projects under the Economic Transformation Programme are expected to create $17 billion in Gross National Income by 2020.
Thailand granting tax incentives for green investment
The Thailand Board of Investment (BOI) on December 24 has announced its support in alternative energy investment after findings have shown that demand for energy will increase by 39 per cent per cent within 9 years.
The Thai government is hoping to push the use of alternative energy and renewable energy to reach 25 per cent of total energy consumption. This is because Thailand has agricultural products that can be used as energy sources such as biomass, biogas, biodiesel and ethanol.
Food industries also yield a great amount of byproducts that can be made into energy from waste. Thailand’s natural resources also have great potential for energy generation.
The BOI has policy to support this type of investment by offering tax incentives and other benefits. For taxation, the BOI is offering tax exemption or reduction for imported machines and materials, and corporate tax exemption or reduction. Incentives in other areas include permission to bring in foreign skills, permission to own land, and foreign currency cash flow. Foreign investors can also hold 100 per cent of the shares.