|Green technology (example)|
Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin has said that he expects loans to businesses under the Government's Green Technology Financing scheme to reach RM1.5 billion this coming year.
It is a sign that businesses themselves or the lenders and the agencies that put companies in touch with such funding are becoming more used to green models.
"After a series of dialogues with Bank Negara and my agencies, bankers are becoming more familiar and comfortable about funding green businesses," he said.
"Banks are approving green loans a lot faster, from over a year to two months."
Indeed, the Malaysia Green Technology Corporation has said that it expects up to 40 projects to be approved by financial institutions under this year, compared to the 25 projects that were approved over the last 12 months with a total value of RM300 million.
The scheme allows companies using green technology to obtain soft loans with a 2 per cent government subsidy of the interest rate and a 60 per cent guarantee on the amount of financing. Under the scheme, between RM10 million and RM50 million is allocated for a project, depending on the criteria.
Prime Minister Datuk Seri Najib Razak announced during the tabling of the 2013 Budget that the fund will be increased by RM2 billion and the deadline for applications extended another three years to 31 December 2015.
The aim of the move is to further boost the production and utilisation of green technology based products.
The government introduced the Green Technology Financing Scheme fund during the 2010 Budget with initial funding of RM1.5 billion.
It is envisaged to be one of the emerging drivers of economic growth for our country and is aimed squarely at aimed at achieving a sustainable rate of development that adheres to proper environmental standards.
Recently the chief operating officer of the US Green Building Council and president of the Green Building Certification Institute Mahesh Ramanujam praised Malaysia for the speed it had adapted to green technology.
"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," he said.
"The right players are in Malaysia and it's just a matter of fueling growth and bringing start-up and emerging technologies to the table."
Malaysia's various green industries are already worth in the region of RM67 billion and, between 2010 and 2011, grew by some six per cent – far outstripping the global growth-rate for the green sector.
It is hoped that by 2020 as much as RM70 billion can be generated in terms of economic activity associated with renewable energy, supporting some 50,000 jobs.
Source: The Choice