Asia School of Business

Global Inquiry, Local Heart

Investor Perspective on Carbon Pricing and Climate Policy Uncertainty in Malaysia: Evidence from Financial Markets

Authors: Jos Bakker

In 2023, Malaysia launched its National Energy Transition Roadmap (NETR), which sets out the policies needed to achieve net-zero emissions by 2050 and significantly increase the share of renewable energy in installed capacity. Malaysia remains heavily dependent on fossil fuels for electricity generation, and given the need to reduce carbon emissions alongside rising geopolitical tensions worldwide, transitioning towards renewable energy is no longer optional. Achieving this transition, however, requires substantial capital investment.